Dante Development Corporation is considering bidding on a contract for a new office building complex. Figure 4.17 shows the decision tree prepared by one of Dante’s analysts. At node 1,….
What type of control chart will you use?
At the present time, about 5 out of every 1000 lots of material arriving at a plant site from outside vendors are rejected because they do not meet specifications. The plant receives about 350 lots per week. As part of an effort to reduce errors in the system of placing and filling orders, you will monitor the proportion of rejected lots each week. What type of control chart will you use? What are the initial center line and control limits?