SYSTEM VARIATION:
Followings are observed value of quality level.
1.67
1.60
1.10
2.24
2.13
1.90
The acceptable standard of quality is 2.0.
(a) Identify positive direction system variation (exceed standard)
(b) Identify negative direction system variation (below standard?
(c) What is the effect of exceeding standard: (i) inside firm, (ii) outside firm?
(d) What is the effect of below standard: (i) inside firm, (ii) outside firm?