Question

In: Operations Management

As part of an insurance company’s training program, participants learn how to conduct an analysis of...

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 37.0 minutes and a standard deviation of 2.0 minutes; and Melissa, a mean of 39.5 minutes and a standard deviation of 3.2 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

Jerry

Melissa

b.Can the value of the Cpk exceed the value of Cp for a given participant?

Yes

No

Solutions

Expert Solution

1. Cpk = MIN(UPPER LIMIT - MEAN / 3 * STANDARD DEVIATION, MEAN - LOWER LIMIT / 3 * STANDARD DEVIATION)

ARMAND

Cpk = MIN(47 - 36 / 3 * 3, 36 - 32 / 3 * 3)

Cpk = MIN(1.2222, 0.4444)

Cpk = 0.44

JERRY

Cpk = MIN(47 - 37 / 3 * 2, 37 - 32 / 3 * 2)

Cpk = MIN(1.6667, 0.8333)

Cpk = 0.83

MELLISA

Cpk = MIN(47 - 39.5 / 3 * 3.2, 39.5 - 32 / 3 * 3.2)

Cpk = MIN(0.7813, 0.7813)

Cpk = 0.78

None of the participants are capable, since we need atkeast a Cpk of 1 to be barely capable.

2. No, Cpk value cannot exceed Cp value since index is a non centered process.


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