The Great Outdoors Clothing Company, a mail-order catalog operation: Operations Management & Analytics Assignment, MALAYSIA

Graded Exercise 2 (100 marks Weightage 5%

The Great Outdoors Clothing Company, a mail-order catalog operation, contracts with the Federal Parcel Service to deliver all of its orders to customers. As such, Great Outdoors considers Federal Parcel to be part of its QMS program. Great Outdoors processes orders rapidly and requires Federal Parcel to pick them up and deliver them rapidly. Great Outdoors has tracked the delivery time for five randomly selected orders for 12 samples during a two – week period as follows:

Construct an X̄ chart in conjunction with an R-Chart using 3σ limits for the delivery process to determine if the process is in control. (60 marks)
The Great Outdoors Clothing Company has designed its packaging and delivery process to deliver orders to a customer within 3 business days ± day, which it tells customers. Using the process mean and control limits developed in part a), compute the process capability ratio and index, and determine if the process is capable to meet the company’s delivery commitment. (40 marks)

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