Question

In: Operations Management

Elon Corporation manufactures parts for an aircraft company. It uses a computerized numerical controlled (CNC) machining...

Elon Corporation manufactures parts for an aircraft company. It uses a computerized numerical controlled (CNC) machining center to produce a specific part that has a design target of 2.317 inches with tolerances of + 0.032 inch. The CNC process that manufactures these parts has a mean of 1.527 inches and a standard deviation of 0.095 inch. Compute the process capability ratio and process capability index, AND comment on the overall capability of the process to meet the design specifications.

Solutions

Expert Solution

The design target of 2.317 with tolerance of 0.032 and process mean of 1.527 doesn't make any sense (because if it is so, then it is quite obvious that the process mean being far lower than the design target, process is incapable of producing to specification)

Considering 2.317 is a typing mistake and the design target is 1.317 (instead of 2.317) and that tolerance is +/- 0.032

USL = 1.317 + 0.032 = 2.349 inch

LSL = 1.317 - 0.032 = 1.285

Process Mean, m = 1.527

Process Std deviation, s = 0.095

Process capability ratio, Cp = (USL - LSL)/6s = (1.347 - 1.285)/(6*0.095) = 0.1088

Process capability index, Cpk = MIN( (USL - m)/3s, (m - LSL)/3s )

= MIN( (1.349-1.527)/(3*0.095), (1.527-1.285)/(3*0.095) )

= -0.6246

Cp is very low, which means that process is clearly incapable of producing to specification.

Cpk is negative, which means process mean is not even within the specification limits. It's an off-center process as well.

The process is incapable as well as off-center.

keosha answered 8 months ago
Next > < Previous

Related Solutions

Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a...
Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labour-hours. On December 10, 2015, the company’s controller made a preliminary estimate of the predetermined overhead rate for 2016. The new rate was based on the estimated total manufacturing overhead cost of $3,402,000 and the estimated 63,000 total direct labour-hours for 2016: Predetermined overhead rate = 3,402,000/63,000 = $54 per direct labour...
Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a...
Sharpton Fabricators Corporation manufactures a variety of parts for the automotive industry. The company uses a job-order costing system with a plantwide predetermined overhead rate based on direct labor-hours. On December 10, 2015, the company's controller made a preliminary estimate of the predetermined overhead rate for 2016. The new rate was based on the estimated total manufacturing overhead cost of $3,402,000 and the estimated 63,000 total direct labor-hours for 2016:             Predetermined overhead rate = $2,475,000/52,000 hours                                                            =...
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based...
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2018. The options permit holders to acquire 5 million of the company's $1 par common shares for $31 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $35 per share....
q. 27 JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety...
q. 27 JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2018. The options permit holders to acquire 6.5 million of the company's $1 par common shares for $22 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $26...
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based...
JBL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2018. The options permit holders to acquire 6.5 million of the company's $1 par common shares for $36 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $40 per share....
BL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based...
BL Aircraft manufactures and distributes aircraft parts and supplies. Employees are offered a variety of share-based compensation plans. Under its nonqualified stock option plan, JBL granted options to key officers on January 1, 2018. The options permit holders to acquire 9 million of the company's $1 par common shares for $38 within the next six years, but not before January 1, 2021 (the vesting date). The market price of the shares on the date of grant is $42 per share....
Umbrella Corp produces engine parts for large aircraft. The company uses a standard cost system for...
Umbrella Corp produces engine parts for large aircraft. The company uses a standard cost system for production costing and control. The standard cost sheet for one of its higher volume products (a valve) is as follows: -Direct materials (7 lbs. @ $5.40) $37.80 - Direct labor (1.75 hrs. @ $18) 31.50 - Variable overhead (1.75 hrs. @ $4.00) 7.00 - Fixed overhead (1.75 hrs. @ $3.00) 5.25 - Standard unit cost $81.55 During the year, Umbrella had the following activity...
Over the River Bridge Company needs to replace its CNC Machining line. They have 3 different...
Over the River Bridge Company needs to replace its CNC Machining line. They have 3 different options for the replacement. Option 1: Replace the worn-out equipment with the same equipment. The quoted price of this equipment is $16,500,000 due in full upon delivery. This equipment uses $185,000 of electricity a year. It has a service life of 5 years. It has a scrap value of $375,000. Option 2: Replace the worn-out equipment with Eco-CNC equipment. The quoted price of this...
Gordon Company is highly automated and uses computerized controllers in manufacturing operations. The company uses a...
Gordon Company is highly automated and uses computerized controllers in manufacturing operations. The company uses a job-order costing system and applies manufacturing overhead cost to products on the basis of the time recorded to complete each job by the computerized controllers attached to each machine. The following estimates were used in preparing the predetermined overhead rate at the beginning of the year:      Machine time in hours 4,000   Manufacturing overhead cost $ 230,000 A severe economic recession resulted in cutting...
Armstrong Corporation manufactures bicycle parts. The company currently has a $19,300 inventory of parts that have...
Armstrong Corporation manufactures bicycle parts. The company currently has a $19,300 inventory of parts that have become obsolete due to changes in design specifications. The parts could be sold for $7,100, or modified for $9,900 and sold for $21,300. 1A) Identify the relevance of the data given in the exercise to the decision about what to do with the obsolete parts (Irrelevant data or Relevant data). Current sales value for unmodified parts Sales value for modified parts Modification costs Current...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT