Find the natural tolerance limits for order completion time

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Reference no: EM131388632

Refer to given Exercise on the order completion time of a logistics firm. Upon conducting a methods study of the various operations, the firm was able to reduce the mean times of operation 1 to 5.8 hours and that of operation 3 to 7.5 hours. Assume that the tolerances did not change. The customer requires an order completion time of 23.2 hours. Assuming normality, what proportion of orders will not meet the customer requirements?

Exercise
A logistics firm has identified four operations, which are to be conducted in succession, for an order to be processed. The tolerances (in hours) are shown in Table 9-9. Assume that the tolerances are independent of each other and that the time in each phase is normally distributed. Further assume that for each operation the processes are barely capable.

(a) Find the natural tolerance limits for order completion time.

(b) If the company sets a goal of 23.5 hours, what proportion of the orders will fail to satisfy this goal?

(d) Using a methods study, the company has improved operation 3 to a mean time of 7.0 hours. What proportion of the orders will now meet the goal?

Operation	Mean Time (hours)	Tolerance
1	6	6 ± 0.6
2	4	4 ± 0.6
3	8	8 ± 0.8
4	5	5 ± 0.3

Reference no: EM131388632

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