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Student’s Name: Nikunj Patel ID Number: 991752735

Signature: Date: 03/11/202

(No signature needed when submitting electronically / online!)

PKG / SQC Assignment 5 (2024) 1 of 5

ASSIGNMENT 4 (10 marks)

Q. (4)
Refer to the data on the examination of medical insurance claims herebelow. Every day
50 claims were examined.
Plot and interpret the ‘fraction nonconforming’ control chart. Revise the chart as may be
necessary.

Day Number Nonconforming

1 0
2 3
3 4
4 6
5 5
6 2
7 8
8 9
9 4
10 2
11 6
12 4
13 8
14 0
15 7
16 20
17 6
18 1
19 5
20 7

Explain with all the steps, formulas used, DETAILED CALCULATIONS for each step
and relevant sketches.
• Provide detailed calculations for each step, NOT just sample calculations.
• Round-off the calculated values appropriately in the final step.
• Do not round-off during intermediate steps.
• Consider at least 5 decimal places during intermediate steps.
• For showing the detailed calculations, any short-cut, such as the use of ‘EXCEL
Sheet’ or computer-aided formula, is NOT acceptable. o However, for making the
relevant sketches, the use of computer graphic technique is encouraged.

PKG / SQC Assignment 5 (2024) 2 of 5

 • The final answer must be correct up to at least FOUR decimal places.
Day Number Nonconforming ‘p’
1 0 0
2 3 0.06
3 4 0.08
4 6 0.12
5 5 0.10
6 2 0.04
7 8 0.16
8 9 0.18
9 4 0.08
10 2 0.04
11 6 0.12
12 4 0.08
13 8 0.16
14 0 0
15 7 0.14
16 20 0.40
17 6 0.12
18 1 0.02
19 5 0.10
20 7 0.14
np
We got the values of ‘p’ by using the formula p= .
n

Calculate Trail Limits:

20
Here m is 20 so we would get ∑ n=1000
i=1

 Trial Central Limits For p-Bar (Mean):

n

∑ np
i=1
p= n

∑n
i=1

np 1+ np 2+ np 3+np 4 +np 5+ np 6+np 7+ np 8+np 9+ np 10

np 11+ np 12+ np 13+np 14+ np 15+np 16+ np 17+np 18+np 19+ np 20
p=
1000

PKG / SQC Assignment 5 (2024) 3 of 5

 0+3+ 4+6+ 5+2+8+9+ 4+ 2+ 6+ 4+8+ 0+7+20+ 6+1+5+7
p=
1000

107
p=
1000

p=0.107

 Trial Control Limits for ‘P-Bar’:

Upper Control Limit

UCLp̅ = p+3
√
p(1− p)
n

UCLp̅ = 0.107+ 3
√
0.107(1−0.107)

UCLp̅ = 0.107+ 0.13114

50

UCLp̅ = 0.23845

Lower Control Limit

LCLp̅ = p−3
√ p (1− p)
n

LCLp̅ = 0.107−3

LCLp̅ =0.107- 0.13114

√
0.107 (1−0.107)
50

LCLp̅ = -0.02414 (Rounded off to 0)

PKG / SQC Assignment 5 (2024) 4 of 5

 Chart Title
14

12

10

0
Category 1 Category 2 Category 3 Category 4

Series 1 Series 2 Series 3

PKG / SQC Assignment 5 (2024) 5 of 5