Question 1
A financial services firm is experiencing high variability in its loan application processing time. A Black Belt is tasked with identifying the key sources of variation. After initial analysis, the team suspects that variation might be positional (differing between loan officers), cyclical (differing by day of the week), and temporal (differing between morning and afternoon shifts). Which graphical analysis tool is specifically designed to investigate these three sources of variation simultaneously on a single chart?
Answer and explanation
Correct answer: C
A Multi-Vari Chart is the correct tool because it is specifically designed to display multiple sources of variation on a single graph. It can effectively show positional (within-piece), cyclical (piece-to-piece), and temporal (time-to-time) variation, making it ideal for pinpointing the largest contributor to overall process variability in this scenario. Box plots are good for comparing distributions but don't show all three types of variation simultaneously. Interaction plots are used after a DOE to visualize interactions, and a Main Effects Plot shows the effect of one factor at a time.