Performance level according to the process capability index

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Reference no: EM132238630

The Money Pit Mortgage Company is interested in monitoring the performance of the mortgage process. The company undertook a process capability study and measured the time to complete a transaction for 10 samples of size 100. From the sample, management estimated the process mean to be 16.13 (days) and the standard deviation to be 2.33 (days). If the lower and upper specification limits (in days) for the mortgage process times were 8 and 28, calculate the following:

1. The process capability index (Cpk) is _________.

(Enter your response rounded to two decimal places.)

2. The process capability ratio (Cp) is _________. (Enter your response rounded to two decimal places.)

3. What is the current process performance level according to the process capability index? _____ sigma performance. (Enter your response as an integer.)

4. What is the current process performance level according to the process capability ratio? ______ sigma performance. (Enter your response as an integer.)

Sigma Performance Threshold

3 1.00

4 1.33

5 1.67

6 2.00

Reference no: EM132238630

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