Posted: June 4th, 2015

dav case

Q1. Why is DAV using Statistical Process Control (SPC)? What are the challenges in
applying SPC to a service industry compared with manufacturing?

Q2. The first 12 weeks of the data in Exhibit 4 represent the diagnostic period for the
Policy Extension Group. What are the 3-sigma control limits for the process? In
which of the subsequent weeks is the process out of control (if any)?

Q3. Develop specific implementation plans for solving the problems facing Annette
Kluck that are described on page 9 of the case.