Table 1 Statistical Process Control (SPC) Problem Data *The Range and Row Average Help You Avoid Simple Math

question 70

Multiple Choice

Table 1 Statistical Process Control (SPC) Problem Data*
$\begin{array}{|c|c|c|c|c|c|}\hline \text { Sample } & \begin{array}{c}\text { Observation } \\\text { Number }\end{array} & \begin{array}{c}\text { Observation } \\\text { Number }\end{array} & \begin{array}{c}\text { Observation } \\\text { Number }\end{array} \\\hline \text { Number } & 1 & 2 & 3 & \begin{array}{c}\text { Row } \\\text { Average }\end{array} & \text { Row Range } \\\hline 1 & 10.1 & 10.6 & 9.6 & 10.1 & 1.00 \\\hline 2 & 9.7 & 9.4 & 9.0 & 9.37 & 0.70 \\\hline 3 & 10.1 & 9.1 & 10.3 & 9.83 & 1.20 \\\hline 4 & 10.1 & 10.3 & 10.9 & 10.43 & 0.80 \\\hline 5 & 10.2 & 9.8 & 9.0 & 9.67 & 1.20 \\\hline 6 & 10.6 & 10.2 & 9.5 & 10.10 & 1.10 \\\hline 7 & 9.5 & 10.2 & 10.2 & 9.97 & 0.70 \\\hline\end{array}$ *The range and row average help you avoid simple math errors and quicken the time to complete the SPC analysis but you have to know what to use when.
-Using Table 1, for the R-chart, what is the value of LCL_R?

• A) Less than or equal to 1.0
• B) Greater than 1.0 but less than or equal to 1.5
• C) Greater than 1.5 but less than or equal to 2.0
• D) Greater than 2.0

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Definitions:

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.

Vendor-Managed Inventory

A replenishment strategy where the supplier is responsible for maintaining the inventory levels of their products at the customer's location.

Outsourcing

The business practice of hiring external vendors to perform services or produce goods that were previously handled internally, often to reduce costs or focus on core competencies.

Benchmark Firms

Companies that are considered to be the best in their industry or category and whose practices are used as a standard or comparison in benchmarking studies.