The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured. The Money Pit Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations, management estimated the process standard deviation to be 4.38 (days) for use in the process capability analysis. The lower and upper specication limits (in days) for the mortgage process times were 5 and 23. :I Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Mean 9 10 6 14 11 9 15 14 11 12 15 7 13 12 7 Range 8 11 2 9 8 6 6 13 12 9 3 4 10 8 9 a. Calculate the process capability index and the process capability ratio values. The process capability index Cpk = '1. (Enter your response rounded to three decimal places.) The process capability ratio CD = D. (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is |:| the critical value, the process ':' capable at the three-sigma level. Since CF) is |:| the critical value, this indicates V . c. What remedial actions, if any, do you suggest that mane is {:22- A. The specification limits must be revised. is not {:22- B. Management should use a lower target process ca, {:22- C. The variability of the process must be greatly reduced. {:22- D. Nothing. The process is capable. The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured. The Money Pit Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5. Based on the individual observations, management estimated the process standard deviation to be 4.38 (days) for use in the process capability analysis. The lower and upper specication limits (in days) for the mortgage process times were 5 and 23. :I Sample 1 2 3 4 5 6 7 8 9 1O 11 12 13 14 15 Mean 9 10 6 14 11 9 15 14 11 12 15 7 13 12 7 Range 8 11 2 9 8 6 6 13 12 9 3 4 10 8 9 a. Calculate the process capability index and the process capability ratio values. The process capability index Cpk = D. (Enter your response rounded to three decimal places.) The process capability ratio CI) = D. (Enter your response rounded to three decimal places.) b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis? Since Cpk is E, the critical value, the process El capable at the threesigma level. Since CF! is |: value, this indicates that . c. What reme )u suggest that management take? equal to A. The s greaterthan :9 revised. {:2} B. Mana ver target process capability ratio. {:3 C. The v less than "nust be greatly reduced. {:2- D. Nothing. The process is capable