Operation Management Assignment

2018 words - 9 pages

THE
 ASSIGNMENT
 IS
 DUE
 ON
 THE
 November
 21
 
  BEFORE
 CLASS
  LATE
 SUBMISSION
 MAY
 NOT
 BE
 ACCEPTED
 OR
 SUBJECT
 TO
 PENALTIES
 
  Operations
 Management
 Fall
 2014
  Assignment
 3–
 Quality
 Management
  Note:
 It
 is
 encouraged
 to
 use
 Excel
 to
 do
 the
 calculations,
 however
 you
 have
 to
 state
 explicit
 your
  calculation
 steps
 and
 print
 out
 the
 result.
 Electronic
 copy
 is
 not
 accepted.
 
  1. A company currently using an inspection process in its material receiving department ...view middle of the document...

25 per every unit. Inspecting, however, costs the company only $0.1667 per unit. Thus, comparing the price of inspecting and not inspecting (replacing), the company decreases its costs of quality by $0.1667 - $1.25, negative $1.0833 per unit.
 

2. A
 metal
 fabricator
 produces
 connecting
 rods
 with
 an
 outer
 diameter
 that
 has
 a
 2±0.01
 inch
  specification.
 A
 machine
 operator
 takes
 several
 sample
 measurements
 over
 time
 and
  determines
 the
 sample
 mean
 outer
 diameter
 to
 be
 2.002
 inches
 with
 a
 standard
 deviation
 of
  0.006
 inch.
 (2
 x
 10
 points)
  a) Calculate
 the
 process
 capability
 index
 

The process capability index is 0.4444. The process capability index, Cpk, can be calculated using the following formula: ! − !"! !"# −   ! ,   3! 3!

!!" = !"# Where,

 ! is the sample mean, 2.002 inches; δ is the sample’s standard deviation, 0.006 inches; LTS is the lower tolerance limit, 2 – 0.01, 1.99 inches; and UTS is the upper tolerance limit, 2 + 0.01, 2.01 inches. !!" = !"# b) ! − !"! !"# −   ! , = !"# 0.6667, 0.4444 = 0.4444   3! 3!

In
 terms
 of
 capability
 index,
 is
 this
 process
 good
 enough
 to
 produce
 this
 product?
 

The process is poor, the mean is significantly shifted to right – adjusting the mean downward would lead to better quality. The Cpk is only slightly higher than the one-sigma design limit of 0.33 (317 defective parts per every thousand) – the process needs significant improvement, especially, if it aims to achieve the Six-Sigma quality of 2 defective parts per billion. The Capability Index (Cpk) is the position of the mean and tails of the process relative to design specification. Capability Index of 0.33 – only slightly lower than the Cpk of current process, implies 68.27% process yield. This means that the metal fabricator should significantly reduce the process volatility to achieve the at least the required value of 1 (three-sigma quality, around 0.26 percent defects) or the preferred values of 1.33 to 2.0 (between four and six sigma quality, with defective rate of 574 to 2 defective units per billion). 3. The
 state
 and
 local
 police
 departments
 are
 trying
 to
 analyze
 crime
 rates
 so
 they
 can
 shift
  their
 patrols
 from
 decreasing rate
 areas
 to
 areas
 where
 rates
 are
 increasing.
 The
 city
 and
  county
 have
 been
 geographically
 segmented
 into
 areas
 containing
 5,000
 residences.
 The
  police
 recognize
 that
 not
 all
 crimes
 and
 offenses
 are
 reported:
 people
 do
 not
 want
 to
  become
 involved,
 consider
 the
 offenses
 too
 small
 to
...

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