In: Operations Management
Consider the bottle-filling process, which has a lower specification limit of 0.99 liter and an upper specification limit of 1.01 liters. The standard deviation is 0.005 liter and the mean is 1 liter. The company wants to reduce its defective probability from 45,500 PPM to 1000 PPM.
A. Determine the current Capability index.
B. Determine the new aspired capability index.
C. To what level would they have to reduce the standard deviation in the process to meet this target?
Calculations were done in Excel and snapshots are shown below:
Formulas:
A. Current Process Capability Index = 0.667
B. New Aspired Process Capability Index = 1.0968
C. Standard deviation in the process would have to be reduced to 0.003 to achieve new aspired process capability index of 1.0968.