The manager of a customer service/claims processing department wants to determine the claims processing capability of the department. Claims usually take a minimum of 5 days to handle. The company has a commitment to handle all claims within 8 days. On the average, claims are processed in 7 days and processing has a standard deviation of 0.5 day.
a. Compute Cpand Cpkfor the customer service/ claims processing department based on these computations. Should the claims department improve its process?
b. Using the same data, recompute Cpk, using an average claims processing time of 6 days instead of 7 days.

Question

The manager of a customer service/claims processing department wants to determine the claims processing capability of the department. Claims usually take a minimum of 5 days to handle. The company has a commitment to handle all claims within 8 days. On the average, claims are processed in 7 days and processing has a standard deviation of 0.5 day.
 a. Compute Cpand Cpkfor the customer service/ claims processing department based on these computations. Should the claims department improve its process?
 b. Using the same data, recompute Cpk, using an average claims processing time of 6 days instead of 7 days.

Quizplus · Accepted Answer

The Answer of The manager of a customer service/claims processing department wants to determine the claims processing capability of the department. Claims usually take a minimum of 5 days to handle. The company has a commitment to handle all claims within 8 days. On the average, claims are processed in 7 days and processing has a standard deviation of 0.5 day.
 a. Compute Cpand Cpkfor the customer service/ claims processing department based on these computations. Should the claims department improve its process?
 b. Using the same data, recompute Cpk, using an average claims processing time of 6 days instead of 7 days.

The Manager of a Customer Service/claims Processing Department Wants to Determine