Question

Below table contains data on examination of medical insurance claims. Every day 50 claims were examined. Medical Insurance Claim Data Day Number Nonconforming Day Number Nonconforming 2 4 6 14 22 55 1151 62 1620 7 170 8 HT a) (15 points) Set up the fraction nonconforming control chart for this process. Plot the preliminary data in table on the chart. Is the process in statistical control? b) (10 points] Assume that assignable causes can be found for any out-of-control points on this chart. What center line and control limits should be used for process monitoring in the next period? c) (15 points] What is the difference between p chart and np chart? Can we use both type of control charts in every condition?

part c

Answer 1

c) The prime difference between the np and the p charts lies within the vertical scale. It is important to mention that np charts depict in the y-axis the entire number of nonconforming units. Whereas, the p charts depict in the y-axis a proportion of the non-conforming units.

We cannot use both types of control charts in every condition because both the np and p represent different forms of data.

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