Certified Production & Operations Manager (POM) Practice Exam

What type of control chart would be used to measure the number of late insurance claim payouts per 100?

1. c-chart

2. p-chart

3. x-bar chart

4. R-chart

The correct answer is: p-chart

The appropriate choice for measuring the number of late insurance claim payouts per 100 is a p-chart. This type of control chart is used for monitoring the proportion of defective items in a process over time, particularly when dealing with quality control of attributes that can be expressed in terms of pass/fail or yes/no outcomes. Since the question pertains to the measurement of late claims, which can be categorized as either late (success/defective) or on time (fail/non-defective), it makes sense to use a p-chart to track the percentage of late claims within the sample size of 100. In contrast, the other types of control charts serve different purposes. A c-chart is used to measure the count of defects per unit, making it suited for situations where the number of defects is of primary interest rather than proportions. An x-bar chart monitors the mean of a variable over time, which is not applicable here since we're focusing on a discrete outcome of late or on-time claims. The R-chart, on the other hand, is utilized to measure the range of a variable in a subgroup, which does not align with the objective of tracking proportions of late insurance claim payouts. Thus, the p-chart is the most suitable tool for this scenario due to its