Essay
The manager of a customer service/claims processing department wants to determine the claims processing capability of the department. Claims usually take a minimum of 5 days to handle. The company has a commitment to handle all claims within 8 days. On the average, claims are processed in 7 days and processing has a standard deviation of 0.5 day.
a. Compute Cpand Cpkfor the customer service/ claims processing department based on these computations. Should the claims department improve its process?
b. Using the same data, recompute Cpk, using an average claims processing time of 6 days instead of 7 days.
Correct Answer:
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a.
\[\begin{aligned}
C_{p} & =\frac{8-5} ...View Answer
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Correct Answer:
Verified
\[\begin{aligned}
C_{p} & =\frac{8-5} ...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
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