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# 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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