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omework Assignment 7 Due in Week 8 and worth 30 points The experiment data in below table was to evaluate the effects of three variables on invoice errors for a company. Invoice errors had been a major contributor to lengthening the time that customers took to pay their invoices and increasing the accounts receivables for a major chemical company. It was conjectured that the errors might be due to the size of the customer (larger customers have more complex orders), the customer location (foreign orders are more complicated), and the type of product. A subset of the data is summarized in the following Table.

Reference: Moen, Nolan, and Provost (R. D. Moen, T. W. Nolan and L. P. Provost. Improving Quality through Planned Experimentation. New York: McGraw-Hill, 1991) Use the date in table above and answer the following questions in the space provided below:

1. What is the nature of the effects of the factors studied in this experiment?

2. What strategy would you use to reduce invoice errors, given the results of this experiment?

3. Table: Invoice Experiment Error

4. Customer Size         Customer Location    Product Type       Number of errors

5.    -                                   -                               -                                15

6.    +                                 -                                -                                 18

7.    -                                 +                                -                                   6

8.    +                                 +                               -                                   2

9.     -                                  -                                +                                 19

10.    +                                  -                                 +                                23

11.     -                                  +                                +                                16

12.    +                                 +                                  +                                21

13. Customer Size: Small (-), Large (+)

14. Customer Location: Foreign (-), Domestic (+)

15. Product Type: Commodity (-), Specialty (+)

omework

Assignment

7

Due in Week 8 and worth 30 points

The experiment data in below table was to evaluate the effects of three variables on

invoice errors for a company. Invoice errors had been a major contributor to

lengthening the time that customers took to pay their invoices and increasing the

accounts rec

eivables for a major chemical company. It was conjectured that the

errors might be due to the size of the customer (larger customers have more

complex orders), the customer location (foreign orders are more complicated), and

the type of product. A subset o

f the data is summarized in the following Table.

Reference: Moen, Nolan, and Provost (R. D. Moen, T. W. Nolan and L. P. Provost.

Improving Quality through Planned Experimentation. New York: McGraw

-

Hill, 1991)

Use the date in table above and answer the f

ollowing questions in the space

provided below:

1.

What is the nature of the effects of the factors studied in this experiment?

2.

What strategy would you use to reduce invoice errors, given the results of this experiment?

3.

Tab

le: Invoice Experiment Error

4.

Customer Size

Customer Location

Product Type

Number of errors

5.

-

-

-

15

6.

+

-

-

18

7.

-

+

-

6

8.

+

+

-

2

9.

-

-

+

19

10.

+

-

+

23

11.

-

+

+

16

12.

+

+

+

21

13.

Customer Size: Small (

-

), Large (+)

14.

Customer Location:

Foreign (

-

), Domestic (+)

15.

Product Type: Commodity (

-

), Specialty (+)

omework Assignment 7

Due in Week 8 and worth 30 points

The experiment data in below table was to evaluate the effects of three variables on

invoice errors for a company. Invoice errors had been a major contributor to

lengthening the time that customers took to pay their invoices and increasing the

accounts receivables for a major chemical company. It was conjectured that the

errors might be due to the size of the customer (larger customers have more

complex orders), the customer location (foreign orders are more complicated), and

the type of product. A subset of the data is summarized in the following Table.

Reference: Moen, Nolan, and Provost (R. D. Moen, T. W. Nolan and L. P. Provost.

Improving Quality through Planned Experimentation. New York: McGraw-Hill, 1991)

Use the date in table above and answer the following questions in the space

provided below:

1. What is the nature of the effects of the factors studied in this experiment?

2. What strategy would you use to reduce invoice errors, given the results of this experiment?

3. Table: Invoice Experiment Error

4. Customer Size Customer Location Product Type Number of errors

5. - - - 15

6. + - - 18

7. - + - 6

8. + + - 2

9. - - + 19

10. + - + 23

11. - + + 16

12. + + + 21

13. Customer Size: Small (-), Large (+)

14. Customer Location: Foreign (-), Domestic (+)

15. Product Type: Commodity (-), Specialty (+)