Submit your solutions to the following problems.
Note 1: Show all your work to get credit! Write your solutions clearly and neatly.
Note 2: Each problem worth 25 points.
Problem 1
Chapter 3: Dr. Patel is concerned about the long wait times in his office. The following table presents six random observations for the patient waiting times over a period of 10 days.
| Observations (mins) | ||||||
| Day | 1 | 2 | 3 | 4 | 5 | 6 |
| 1 | 30 | 17 | 18 | 21 | 19 | 33 |
| 2 | 17 | 11 | 33 | 33 | 39 | 11 |
| 3 | 19 | 25 | 40 | 17 | 38 | 13 |
| 4 | 29 | 31 | 29 | 25 | 22 | 21 |
| 5 | 15 | 34 | 26 | 14 | 14 | 18 |
| 6 | 8 | 11 | 29 | 33 | 39 | 17 |
| 7 | 24 | 24 | 26 | 37 | 28 | 20 |
| 8 | 14 | 33 | 23 | 16 | 40 | 13 |
| 9 | 27 | 18 | 30 | 11 | 20 | 17 |
| 10 | 37 | 35 | 12 | 38 | 29 | 8 |
- Dr. Patel is willing to use three-sigma limits. Use the given data and the factors from Table 3.1 (page 110) to construct R-chart and -chart.
- Is the process in statistical control? Explain.
- If patient surveys indicate that they are willing to wait between 10 and 30 minutes before seeing Dr. Patel, is the process capable of meeting this demand at the three-sigma level?
Problem 2
Chapter 3: A bank randomly looks at loan applications and checks them for errors. Ten applications and the number of errors identified on the applications are found in the following table. When the process is working correctly, the average number of errors found is 2. Construct a c-chart using two-sigma control limits. Is the process in statistical control? Explain.
| Application number | Number of errors |
| 1 | 3 |
| 2 | 0 |
| 3 | 1 |
| 4 | 5 |
| 5 | 3 |
| 6 | 2 |
| 7 | 2 |
| 8 | 4 |
| 9 | 1 |
| 10 | 1 |
Problem 3
Chapter 7: Your hospital has applied for certification as a level 1 stroke center. It is critical that the following project is completed before the next Joint Commission survey in 18 weeks. Project activity times are listed in the table below.
Activity | Immediate Predecessors | Normal Time (NT) (weeks) | Normal Cost (NC) ($) | Crash Time (CT) (weeks) | Crash Cost (CC) ($) |
| A | — | 6 | $600 | 2 | $1,400 |
| B | A | 7 | $200 | 3 | $600 |
| C | — | 9 | $500 | 6 | $950 |
| D | C | 2 | $800 | 1 | $1,200 |
| E | D | 8 | $1,600 | 5 | $2,800 |
| F | B, D | 5 | $200 | 4 | $400 |
| G | F | 4 | $400 | 3 | $750 |
Problem 4
Chapter 7: Read and watch the video case “Project Management at Choice Hotels International” on page 280 of the textbook and review the risk-management plans section on page 259. Assess the four categories of a risk-management plan for the choice EDGE project. Given the information in the case, discuss how risky this project is for Choice Hotels.
