What is the annual expected fixing cost of the process

Reference no: EM131858865

Question: 1. Consider a process with an upper spec limit of 69.5 grams, a lower spec limit of 62 gram and a mean of 67 grams.

a. If the standard deviation is 1 gram, is the process "capable?"

b. If the standard deviation is 2 grams, is the process "capable?"

2. Consider a normally distributed process that cuts wood with a "process center" of 18 inch and a standard deviation of .08 inches. The lower specification limit is 17.75 inches, and the upper specification limit is 18.18 inches. A piece of wood that is cut too short must be scrapped at a cost of $22.00. A piece of wood that is cut too long must be re-cut by hand a cost of $4.50. The firm runs 20,000 pieces of wood through the machine per day and works 350 days per year. What is the annual expected fixing cost of this process?

Reference no: EM131858865

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