In: Operations Management
QUESTION #10:
Consider a process by which coils are manufactured. Samples of size n = 5 are randomly selected from the process, and the resistance values (in ohms) of the coils are measured for 25 subgroups (samples). The data values are given in the following table.
Sample |
x1 |
x2 |
x3 |
x4 |
x5 |
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 |
20 19 25 20 19 22 18 20 21 21 20 22 19 20 20 21 20 20 20 22 23 21 21 20 19 |
22 18 18 21 24 20 20 18 20 19 20 21 22 21 24 20 18 24 19 21 22 18 24 22 20 |
21 22 20 22 23 18 19 23 24 20 23 20 19 22 24 24 18 22 23 21 22 18 24 21 21 |
23 20 17 21 22 18 18 20 23 20 22 22 18 21 23 20 20 23 20 24 20 17 23 21 21 |
22 20 22 21 20 19 20 21 22 20 20 23 19 22 23 21 20 23 19 22 22 19 23 20 22 |
(a)
Sample size (n) = 5, using the standard 3-sigma tables for X-bar/ R chart, we get A2 = 0.577, D3 = 0, D4 = 2.114
X-bar chart:
UCLx = X_double-bar + A2 * R-bar = 20.84 + 0.577 * 3.48 =
22.85
CLx = X_double-bar = 20.84
LCLx = X_double-bar - A2 * R-bar = 20.84 - 0.577 * 3.48 = 18.83
Range Chart:
UCLr = D4 * R-bar = 2.114 * 3.48 = 7.357
CLr = R-bar = 3.48
LCLr = D3 * R-bar = 0.000 * 3.48 = 0.000
(b)
The process is out of control for sample 22 and 23 in the mean chart and sample 3 in the range chart.
(c)
Remove sample 3, 22, and 23 and recalculated the mean and range chart UCL and LCL as follows:
X-bar chart:
UCLx = X_double-bar + A2 * R-bar = 20.864 + 0.577 * 3.273 =
22.75
CLx = X_double-bar = 20.86
LCLx = X_double-bar - A2 * R-bar = 20.864 - 0.577 * 3.273 =
18.98
Range Chart:
UCLr = D4 * R-bar = 2.114 * 3.273 = 6.92
CLr = R-bar = 3.27
LCLr = D3 * R-bar = 0.000 * 3.273 = 0.000
The revised chart contains just one point (sample-14) outside the limit in the mean chart marginally.
(d)
Process mean (μ) is estimated by the X_double-bar i.e.
20.86
Process stdev (σ) = R-bar / d2
The coefficient d2 is to be noted from the standard table and will be equal to 2.326 for n=5.
So,
σ = 3.27 / 2.326 = 1.41
(e)
USL = 21 + 3 = 24
LSL = 21 - 3 = 18
μ = 20.86
σ = 1.41
Prob{LSL < Output < USL} = Prob(Output < USL} - Prob{Output < LSL}
= NORM.DIST(24, 20.86, 1.41, 1) - NORM.DIST(18, 20.86, 1.41, 1)
= 0.966
So, Proportion non-conforming = 1 - Prob{LSL < Output < USL} = 1 - 0.966 = 0.034
(f)
Prob{Output < LSL} = NORM.DIST(18, 20.86, 1.41, 1) = 0.021
So, expected number of loss = 0.021 * 10,000 = 210 units
So, cost of scrap per day = 210 * $0.50 = $105