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The Management of a Line That Fills Cereal Boxes Wants

question 174

Essay

The management of a line that fills cereal boxes wants the box filled at 32.2 ounces.When the process is in control,the standard deviation is .1 ounces.
a.Construct the upper and lower control limits for a 3-sigma x-bar chart using a sample size of five.
b.The results from the last 10 samples follow.Is the process in control?
 Observation  Sample # 12345132.0732.0032.4332.5032.03232.2132.0932.1732.3332.32332.1032.4132.5032.0132.19432.2032.0532.0532.0832.18532.3732.0732.2032.0232.18632.2832.2632.1732.0832.41732.2232.2732.1632.2632.08832.3732.2932.0732.2932.04932.4232.1532.4532.0332.151032.0332.1932.0532.3532.14\begin{array}{c}\quad\quad\quad\text { Observation }\\\begin{array}{crrrrr}\text { Sample \# } & 1 & 2 & 3 & 4 &5 \\\hline 1 & 32.07 & 32.00 & 32.43 & 32.50 & 32.03 \\2 & 32.21 & 32.09 & 32.17 & 32.33 & 32.32 \\3 & 32.10 & 32.41 & 32.50 & 32.01 & 32.19 \\4 & 32.20 & 32.05 & 32.05 & 32.08 & 32.18 \\5 & 32.37 & 32.07 & 32.20 & 32.02 & 32.18 \\6 & 32.28 & 32.26 & 32.17 & 32.08 & 32.41 \\7 & 32.22 & 32.27 & 32.16 & 32.26 & 32.08 \\8 & 32.37 & 32.29 & 32.07 & 32.29 & 32.04 \\9 & 32.42 & 32.15 & 32.45 & 32.03 & 32.15 \\10 & 32.03 & 32.19 & 32.05 & 32.35 & 32.14\end{array}\end{array}

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, allowing better performance evaluation.

Other Expenses

Costs not directly related to the core operations of a business, such as interest payments or losses from selling assets.

Food And Supplies

Items necessary for the preparation and service of food in industries such as catering or restaurants.

Net Operating Income

It is the total profit of a company after operating expenses are subtracted from total revenue but before interest and taxes are deducted.

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