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Additional Case Study Assignment: Green River Chemical Company

Green River Chemical Company customers have complained regarding the sulfate content of the company's product. Every customer allows some sulfate content, but theoretically there should be none. The usual customer specification is 90 parts per million (PPM) sulfate.

The quality control department at Green River feels that there is no problem with sulfate content, which has been averaging just over 50 PPM. The production department estimates that a substantial investment would be required to lower the amount of this contaminant. These two departments, after consulting with the marketing department and customers, suggest that a control chart be set up to monitor sulfate content. Five samples will be tested per day and plotted as one point on the chart.

Use the data in Table 1 to set up the control limits. Then, after the limits are in place for this process, use Table 2 to determine whether or not the process remains in control for the week of April 6-10.

TABLE 1 Original Green River Chemical Company data

Date

1

2

3

4

5

X

R

 

March

2

57

54

62

45

36

50.8

26

3

56

54

47

42

62

52.2

20


4

40

70

58

45

44

51.4

30


5

52

58

40

52

46

49.6

18


6

57

42

52

58

59

53.6

17


9

62

49

42

33

55

48.2

29


10

40

39

49

59

48

47.0

20


11

64

50

42

57

50

52.6

22


12

58

53

52

48

50

52.2

10


13

60

50

41

41

50

48.4

19


16

52

47

48

58

40

49.0

18


17

55

40

56

49

45

49.0

16


18

47

48

50

50

48

48.6

3


19

50

50

49

51

51

50.2

2

 

20

51

50

51

51

62

53.0

12

 

23

51

50

49

50

50

50.0

2

 

24

45

47

70

46

36

48.8

34

 

25

50

35

48

39

47

43.8

15

 

26

55

70

50

30

51

51.2

40

 

27

49

38

64

36

47

46.8

28

 

30

59

62

40

54

64

55.8

24

 

31

36

33

49

48

56

44.4

23

 

April

1

50

67

53

43

40

50.6

27

2

44

52

46

47

44

46.6

8


3

70

45

50

47

41

50.6

29


TABLE 2 Data for week of April 6-10

Date

1

2

3

4

5

 

April

6

63

49

50

45

53

7

57

70

45

52

61


8

45

38

46

54

52


9

48

52

39

57

61


10

45

53

48

46

66


Discussion Question

1. Does the process remain in control? Does the data for March appear to be in control?

Microeconomics, Economics

  • Category:- Microeconomics
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