Producing computer chips with an average life

Assignment Help Operation Management

Reference no: EM13783742

Thunder Bay has been producing computer chips with an average life of 480 hours and a standard deviation (s) of 24 hours. The customer specifications are 400 (lower specification limit) to 600 (upper specification limit).

a) Thunder Bay has the opportunity to obtain a large order from XYZ Computers if it can produce the computer chips with specification limits of 400 to 600 hours. If the minimum acceptable process capability is 1.20, can Thunder Bay meet the customer’s specification requirements at this time? If it cannot, explain if it is due to a drifting of the mean or too much variability. Explain.

b) Suppose that Thunder Bay is producing computer chips with a mean of 520 hours and it cannot change this. What is the maximum value of the standard deviation so that Thunder Bay can meet the customer requirements at a process capability index of 1.0?

Reference no: EM13783742

Questions Cloud

Risk-response plans for the data-mining software project : A firm hosts data-mining servers and performs data mining for other companies that do not desire the costs of hardware, software, or expertise to data mine their data. The firm is planning to roll out faster data-mining software that will reduce the ..

Producing movies-software-management consulting : Producing movies, software, management consulting, breakfast cereals and school of business are domestic industries in what kind of international strategies?

Addressed in a risk management plan : Please answer the question and support your ideas, then respond to a minimum of two of your classmates. What are some questions that should be addressed in a risk management plan?

Article on project risk management : Do you find one rule to be more important than any other? Explain why. Search the Internet for other articles project risk management. Summarize the findings.

Producing computer chips with an average life : Thunder Bay has been producing computer chips with an average life of 480 hours and a standard deviation (s) of 24 hours. Thunder Bay has the opportunity to obtain a large order from XYZ Computers if it can produce the computer chips with specificati..

The distribution of a firms capital between debt and equity : The distribution of a firm's capital between debt and equity is its

Provides an overview of strategic management and strategy : Introduction to Strategic Management (2014) provides an overview of strategic management and strategy. To launch our exciting course, this learning activity requires you to explain a high-level overview of your previous or current organization’s stra..

What will be the maximum inventory level : Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 285 per day, and it uses these subcomponents at a rate of 12,200 per year (of 250 working days). Wh..

From a managerial perspective-market value : Simon Sinek uses Apple as an example of a successful organization that thinks differently on how it positions/sells its products. In the past year, Apple's market value has plummeted from a high of $700+/share to less than $350 in April/May, 2013. Th..

User Account

All Pages