SCENARIO 19-4 A Factory Supervisor Is Concerned That the Time It Takes

question 13

Multiple Choice

SCENARIO 19-4
A factory supervisor is concerned that the time it takes workers to complete an important production task (measured in seconds) is too erratic and adversely affects expected profits.The supervisor proceeds by randomly sampling 5 individuals per hour for a period of 10 hours.The sample mean and range for each hour are listed below.
She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds,respectively.
-Referring to Scenario 19-4,suppose the supervisor constructs an x̄ chart to see if the process is in-control.Which expression best describes this chart?

• A)Decreasing trend
• B)In-control
• C)Increasing trend
• D)Individual outliers

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Definitions:

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Short-run Marginal Cost Curve

A curve that shows the change in total cost associated with producing one more unit of output in the short term.

Diminishing Marginal Returns

A principle that states as additional units of a variable input are added to fixed inputs, the additional output produced from each new unit eventually decreases.

Variable Resources

Inputs that change in quantity with levels of production, such as raw materials and labor.