1. The Blackwoods American company operates a telephone order system for a catalogue of its outdoor clothing company products. The catalogue orders are processed in three stages. In the first stage, the telephone operator enters the order into the computer; in the second stage, the items are secured and batched in the warehouse; and in the final stage, the ordered products are packaged. Errors can be made in orders at any of these stages, and the average percentage of errors that occurs at each stage are as follows.

Stage               %Errors

1                        12%

2                        8%

3                        4%

If an average of 320 telephone orders are processed each day, how many errorless orders will result?

2. The total processing cost for producing the X-Pacer running shoe in Problem 2-5 is $18. The Omega Shoe Company starts production of 650 pairs of shoes weekly, and the average weekly yield is 90%, with 10% defective shoes. One quarter of the defective shoes can be reworked at a cost of 3.75. Compute the quality-productive ratio.

Not sure if you need problem 2-5 to answer this but here it is.

The company's shoe production for the past three years and manufacturing costs are as follows.

                                      2008                  2009                  2010

Units produced/input      32,000              34,600              35,500

Manufacturing cost         278,000           291,000             305,000

Percent good quality        78%                    83%                   90%

3. The Great North Woods Clothing Company sells specialty outdoor clothing through its catalogue. A quality problem that generates customer complaints occurs when a warehouse employee fills an order with the wrong items. The company has decided to implement a process control plan by inspecting the ordered items after they have been obtained from the warehouse and before they have been packaged. The company has taken 30 samples (during a 30-day period), each for 100 orders, and recorded the number of defective orders in each sample, as follows:

Sample      Number of Defectives          Sample             Number of Defectives

1                  12                                   17                                3

3                  10                                   18                                7

4                  16                                   19                               10

5                  18                                   20                               14

6                 19                                    21                               18

7                 14                                    22                               22

8                  20                                   23                               26

9                  18                                   24                               20

10                17                                   25                               24

11                9                                     26                              18

12                11                                   27                              19

13                14                                   28                               20

14                 12                                  29                               17

15                  7                                  30                                18

Construct a p-chart for the company that describes 99.74% of the random variation in the process, and indicate if the process seems to be out of control at any time.