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A Manager Wishes to Build a 3-Sigma Range Chart for a Process

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A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of sample means is 16.01, and the average range is 5.3. From Table S6.1 in the text, the appropriate value of D3 is 0, and D4 is 2.115. The UCL and LCL for this range chart are


Definitions:

Manufacturing Overhead

These are indirect costs associated with manufacturing, not directly attributable to a specific product, such as factory rent, utilities, and maintenance.

Direct Materials

The raw materials used in the manufacturing process of a product that are directly incorporated into the final product.

Raw Materials Inventory

Stocks of unprocessed materials that are used in the production process, awaiting use in manufacturing.

Factory Utilities

Costs associated with utilities consumed in the manufacturing process, such as electricity, gas, and water.

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