Requirements are in the following documents

In the attached excel file there are three sets of data. Create all applicable control charts and answer all questions presented. Some information you need for control chart development is included below.

A firm’s product usually has a reliability rating on their product of .97 for 17520 hours of operation. To track how their production process is doing the firm counts the number of warranty claims they have for the first 168 hours of operation (all of these units operate 24/7) for all units sold every week. The firm has a maintenance program in place where they maintain all units sold, so it is easy to get accurate data on the number of units that fail. Operations have found that in the past, if a bearing does not meet specifications of .25 +/- .0001 inches, the product will fail prematurely. Normally they operate a bearing manufacturing process that has a capability index of 2 and the mean usually stays on the target norm of .25 inches, but it has been hard to find steady help lately. Other problems they have had in the past are linked to the display having flaws that, over time, make it so the display cannot be read. If the units are put under black light during production, the flaws that cause this problem can be counted, but management feels that inspection is too expensive because the process to make the displays normally does just fine. When the process for making displays is in control, there is an average of 2 flaws per display with a standard deviation of 1.4142. As long as the process is in control, problems do not seem to develop. There can be other problems, but these two have caused 99.99% of past failures. Production averages 1000 units per week and there are only 5 bearings per unit. It costs $1500.00 dollars every time there is a warranty claim (one-year guarantee, complete replacement). It would cost $48,000.00 per year to monitor all displays, and $15,000.00 to install a ball deck that would last 5 years, and automatically monitors the size of bearings placed on it by separating bearings into three ranges of sizes, too big, correct, and too small. Every three months production seems to go out of whack similar to what you see in data set one, and two weeks of production goes out the door before the problem is discovered and fixed because it takes one week of data to confirm there is a problem and one week to find the problem and fix it. The company accrues monthly and assumes that their discount rate is 12% APR.

1. From the 30 weeks of data supplied, on average, what is the proportion failing?

2. According to the reliability rating, how many units on average would you expect to fail in one week?

3. What can you assume from the data in data set one, in other words, what do you know about the process or processes used to create the product. Given the total process and other parameters of the scenario, does the chart you would use for this type of data seem to be the correct way of displaying a picture of the processes output (does the control chart tell you what you need to know to do the correct job of monitoring the production process)?

4. Why do you have the next two sets of data? Which problem seems to be the problem (show on the proper charts)?

5. If you were to recommend a ball deck for the bearings, how many decks would you need and what size of holes would you recommend (think six sigma) and (given the process where bearings are made as needed) how big a sample and how often would you sample? In addition, how would you display your data?

6. From the data being collected and the information provided above, what do you believe is the current quality policy relative to process monitoring and steps to take once a problem arises? If it makes sense to do so, develop a better quality policy for this company. Justify the policy that you do or do not develop (show how much money (NPV) you would save, and what does K1/K2 tell you to do).