In: Operations Management
As part of an insurance company’s training program, participants
learn how to conduct an analysis of clients’ insurability. The goal
is to have participants achieve a time in the range of 32 to 47
minutes. Test results for three participants were: Armand, a mean
of 36.0 minutes and a standard deviation of 3.0 minutes; Jerry, a
mean of 34.0 minutes and a standard deviation of 3.0 minutes; and
Melissa, a mean of 39.5 minutes and a standard deviation of 3.0
minutes.
a.Which of the participants would you judge to
be capable? (Do not round intermediate calculations. Round
your answers to 2 decimal places.)
Participants | Cpk | Cp | Capable ? |
Armand | (Click to select) Yes No | ||
Jerry | (Click to select) No Yes | ||
Melissa | (Click to select) Yes No | ||
b.Can the value of the Cpk exceed the
value of Cp for a given participant?
Yes
No
Answer a) Here, we will apply the following formula, to calculate the capability index for all the three participants:
Cpk =
Cp =
Where,
i) For Armand,
By replacing the appropriate values, we get:
, and
Hence,
ii) For Jerry,
By replacing the appropriate values, we get:
Hene,
iii) For Melissa,
By replacing the appropriate values, we get:
Hence,
Cp for all 3 participants =
Conclusion:
As we know that the participant whose Cpk ≥ 1, he/she is judged as capable. Here, as we note, all the 3 participants have Cpk < 1. Hence, we conclude that neither of the participants should be judged as capable.
Answer b) Here, we can easily observe that the value of Cpk can not exceed the value of Cp for any of the given participants.
Reason: Cp measures the only variation in the process considering the difference between upper specification limit and lower specification limit divided by 6 times the standard deviation. However, Cpk considers the minimum value of the difference between the upper / control limits from the mean and dividing the value by 3 times standard deviation value. Which leads to the value of Cpk being less than or equal to Cp and not more than that