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Fall-2013 Master of Business Administration - MBA Semester 3 QM0012Statistical Process Control and Process Capability-4 Credits (Book ID: B1242) Assignment (60 Marks) Note: Answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Each Question carries 10 marks 6 X 10=60. Q1. Explain the concept of Pareto Chart and Scatter Diagram. Answer. Pareto chart Also called: Pareto diagram, Pareto analysis A Pareto chart is a bar graph. The lengths of the bars represent frequency or cost (time or money), and are arranged with longest bars on the left and the shortest to the right. In this way the chart visually depicts which situations are more significant.

Q2. (A). Explain Poisson distribution. Give any two examples of Poisson distribution. (b). If 2% of electric bulbs manufactured by a certain company are defective, find the probability that in a sample of 200 bulbs i) less than 2 bulbs, ii) more than 3 bulbs are defective.[e-4 = 0.0183] Answer. (a) Poisson Distribution' A statistical distribution showing the frequency probability of specific events when the average probability of a single occurrence is known. The Poisson distribution is a discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time and/or space if these events occur with a known average rate and independently of the time since the last event. The Poisson distribution

Q3. Explain the procedure generally followed in testing of a hypothesis. Write a detailed note on One- tailed and Two-tailed tests. Answer. The various steps involved in hypothesis testing are stated below: 1. Making a formal statement: The step consists in making a formal statement of the null hypothesis (H0) and also of the alternative hypothesis (Ha). This means that hypotheses should be clearly stated, considering the nature of the research problem 2. Selecting a significance level: The hypotheses are tested on a pre-determined level of significance and as such the same should be specified Generally, in practice, either 5% level or 1% level is adopted for the purpose The factors that Q4. What is analysis of variance? State all the assumptions involved in analysis of variance technique. Explain the structure for one way analysis of variance or one way classification. Answer. Analysis of Variance (ANOVA) is a statistical method used to test differences between two or more means. It may seem odd that the technique is called "Analysis of Variance" rather than "Analysis of Means." As you will see, the name is appropriate because inferences about means are made by analyzing variance. In ANOVA setting, the observed variance in a particular variable is partitioned into components attributable to different

Q5. Explain the different types of attribute control charts. Distinguish between control charts for variables and control charts for attributes. Answer. Attribute (i.e., counted) Attribute type control charts use counted data (number of defects, mistakes, errors, injuries, etc.). When looking at data, attribute data is always an integer (e.g., 1, 3, 5). Attributes Charts are types of control chart which is evaluating stability of a process by charting the count of occurrences of a given event in successive samples. Control charts are used to regularly monitor a process to determine whether it is in control. When it is not possible to measure the quality of a product or service with continuous data, attribute data is Less common types of variable control charts include: ANOM - Analysis of Means Control Chart Colum - Cumulative Sum Control Chart EWMA - Exponentially Weighted Moving Average Control Chart Levy Jennings Control Chart Moving Average Control Chart

Q6. Explain the methodology for Statistical Process Control implementation (SPC). What are the benefits derived from SPC? Answer. One way to improve a process is to implement a statistical process control program. Typically used in mass production, an SPC program enables a company to continually release a product through the use of control charts rather than inspecting individual lots of a product. The purpose of the flowcharting or brainstorming session is not to redevelop SPC. SPC is a commonly used technique, and its use and benefits can be reviewed in many quality assurance journals. The working group should have a basic understanding of SPC and realize that it is developing a system built on using the charts and ensuring control of the ancillary activities that support them.

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