Question

In: Statistics and Probability

You are the Quality Leader for a manufacturing company that produces a composite product. A new...


You are the Quality Leader for a manufacturing company that produces a composite product. A new product has been designed and your company will be manufacturing these items. After the initial pilot run your inspector reports the process output as follows;
µ = 1132 grams
s = 37 grams
Customer specifications are;
LSL = 1100 g
USL = 1200 g
1. Draw a model for this process (normal curve) with the mean, upper 3s, lower 3s as well as the customer specification limits.
2. Calculate the losses in percent for the current process?
3. Redraw the model as it would appear when the process is centered.
4. Calculate the losses under this centered process.
5. Determine the value of the new standard deviation that would be needed in order to have a process where the customer specification limits are at ± 3 standard deviations (e.g. z = ± 3.0)

Solutions

Expert Solution

orchestra answered 1 year ago
Next > < Previous

Related Solutions

You work in a manufacturing company which produces white goods. The company is planning an investment in a new product line.
  You work in a manufacturing company which produces white goods. The company is planning an investment in a new product line. The initial investment includes the machinery required for the production line which costs $320,000. Other expenses were included in the expected cash flows. The new machinery has a useful life of 4 years and an estimated residual value at the end of the 4th year of $80,000. Depreciation is the only non-cash expense. The net cash flows of...
Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality...
Vernon Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Vernon produces and sells only 6,100 bikes each year. Due to the low volume of activity, Vernon is unable to obtain the economies of scale that larger producers achieve. For example, Vernon could buy the handlebars for $35 each; they cost $38 each to make. The following is a detailed breakdown of current production costs: Item Unit Cost Total...
Franklin Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality...
Franklin Bicycle Manufacturing Company currently produces the handlebars used in manufacturing its bicycles, which are high-quality racing bikes with limited sales. Franklin produces and sells only 7,000 bikes each year. Due to the low volume of activity, Franklin is unable to obtain the economies of scale that larger producers achieve. For example, Franklin could buy the handlebars for $34 each; they cost $37 each to make. The following is a detailed breakdown of current production costs: Item Unit Cost Total...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The company’s revenues and expenses for the last four months are given below. Central Valley Company Comparative Monthly Income Statements March April May June Sales in units 6,800 6,300 7,050 7,300 Sales revenue $ 829,600 $ 768,600 $ 860,100 $ 890,600 Less: Cost of goods sold 418,500 393,000 426,250 444,000 Gross margin 411,100 375,600 433,850 446,600 Less: Operating expenses Shipping expense 76,000 71,000 79,250 80,000...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The company’s revenues and expenses for the last four months are given below. Central Valley Company Comparative Income Statement March April May June   Sales in units 5,800 5,300 6,450 7,600   Sales revenue $ 742,400 $ 678,400 $ 825,600 $ 972,800 Less: Cost of goods sold 392,200 366,336 429,312 496,128 Gross margin $ 350,200 $ 312,064 $ 396,288 $ 476,672 Less: Operating Expenses            Shipping expense...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The...
The Central Valley Company is a manufacturing firm that produces and sells a single product. The company’s revenues and expenses for the last four months are given below. Central Valley Company Comparative Income Statement March April May June Sales in units 6,900 6,400 8,100 9,800 Sales revenue $ 793,500 $ 736,000 $ 931,500 $ 1,127,000 Less: Cost of goods sold 421,350 397,440 484,380 574,770 Gross margin $ 372,150 $ 338,560 $ 447,120 $ 552,230 Less: Operating Expenses Shipping expense $...
A manufacturing company is evaluating two options for new equipment to introduce a new product to...
A manufacturing company is evaluating two options for new equipment to introduce a new product to its suite of goods. The details for each option are provided below: Option 1 $65,000 for equipment with useful life of 7 years and no salvage value. Maintenance costs are expected to be $2,700 per year and increase by 3% in Year 6 and remain at that rate. Materials in Year 1 are estimated to be $15,000 but remain constant at $10,000 per year...
A manufacturing company is evaluating two options for new equipment to introduce a new product to...
A manufacturing company is evaluating two options for new equipment to introduce a new product to its suite of goods. The details for each option are provided below: Option 1  $65,000 for equipment with useful life of 7 years and no salvage value.  Maintenance costs are expected to be $2,700 per year and increase by 3% in Year 6 and remain at that rate.  Materials in Year 1 are estimated to be $15,000 but remain constant at $10,000 per year...
The Zee manufacturing company produces a single product which goes through one process only. The manufacturing...
The Zee manufacturing company produces a single product which goes through one process only. The manufacturing cycle takes a month. The company started its manufacturing operation on 1st February, 2018 and costs of production for this month were as follows: Material Rs. 41,412 Labor Rs. 32,054 FOH Rs. 23,870 The production statistics for the month were as follow: Units completed and transfer to finished goods store Rs. 6,500 Unit in Process on February 31, 2018 was 1,600 (Material 40%, Labor...
Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a...
Williams Optical Inc. is considering a new lean product cell. The present manufacturing approach produces a product in four separate steps. The production batch sizes are 54 units. The process time for each step is as follows: Process Step 1 6 minutes Process Step 2 9 minutes Process Step 3 4 minutes Process Step 4 8 minutes The time required to move each batch between steps is 16 minutes. In addition, the time to move raw materials to Process Step...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT