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Ritz-Carlton

Q1.1 – Using the sheet “Summary Counts” in the file “doc_Ritz Carlton_nc.xls” calculate the overall average ratio of recorded quality incidents per room occupancy for the period from January 1 to November 24, 1997 (in the following, we will refer to this number as p bar).

Please explain your calculation

Q1.2 – For every day in this period, calculate the ratio of the number of recorded quality incidents to room occupancy as well as upper and lower control limits above and below p bar. What was the Upper Control Limit (UCL) on September 2nd, 1997? Hint: in this case UCL depends on the room occupancy for the day.

Please explain your calculation

Q1.3- How many days in this period were “out of control” in a statistical sense, i.e., had a ratio of defects to room occupancy higher than the upper control limit for the day?

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Q1. 4- For the out of control days, select the three most prevalent types of defect in order of decreasing prevalence. Prevalence ties can be resolved arbitrarily, i.e. input equally prevalent types of defects in any order.

	Most Prevalent	Second Most Prevalent	Third Most Prevalent
Type of defect:

Q1.5 – For the out of control days, select the three least prevalent types of defect in order of increasing prevalence. Prevalence ties can be resolved arbitrarily, i.e. input equally prevalent types of defects in any order.

	Least Prevalent	Second Least Prevalent	Third Least Prevalent
Type of defect:

Q1.6 – For each day of the week, please provide the number of times the day was out of control.

Monday
Tuesday
Wednesday
Thursday
Friday
Saturday
Sunday

Concept Check

Please explain the conceptual difference between Upper Acceptable Limit (UAL) (also known as Upper Specification Limit) and Upper Capability Measure (UCM).

Process Capability

A project team in a small bank is studying the productivity of the cashier operations. Technical variability in transaction (deposit/withdrawal) times is identified as a potential area for improvement. The average time for such a transaction is currently normally distributed with mean 2 minutes and standard deviation 50 seconds. An “efficiency standard” has been laid down that transactions should not exceed 3.5 minutes.

Q3.1 – In this environment, what is the upper capability measure of the cashier transaction times?

Please explain your calculation

Q3.2 – What is the current probability of missing the efficiency standard limit?

Target Miss Probability:

Please explain your calculation

Q3.3 – If the transaction completion process was upgraded and the upper capability measure (Cpu) of the transaction times was equal to 1.25 instead, what would be the probability of missing the efficiency standard limit?

Target Miss Probability:

Please explain your calculation

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