A health care service organization is involved with billing insurances for medical services. A government audit is expected to occur later in the year. In preparation for the audit, the organization has decided to perform SPC to determine if there billing process is in control. The data on the right includes samples taken over the last 30 days. The number of nonconforming (Column c) represents issues or violations with bills taken from samples (listed in column b)

Conduct an SPC analysis to determine if the billing process is in statistical control. Answer the following questions:

a. What type of SPC chart is most suitable for the SPC analysis?

b. Is the process in statistical control?

c. If not in control, what are the problems?

d. What is/are the UCL values (list all if more than one chart is used)?

e. What is/are the LCL values (list all if more than one chart is used)?

f. What is/are the CL values (list all if more than one chart is used)?

g. What would you recommend to improve the process?

Sample_Number	Sample_Size	Number_Nonconforming
1	160	5
2	150	4
3	150	12
4	150	3
5	110	2
6	150	5
7	100	0
8	150	3
9	150	3
10	170	5
11	120	16
12	120	2
13	90	7
14	150	2
15	150	6
16	150	3
17	140	3
18	150	2
19	150	22
20	150	2
21	130	1
22	150	2
23	120	2
24	150	8
25	120	4
26	150	1
27	150	16
28	150	12
29	150	10
30	150	2