Business Homework Solutions
Problem
#43728

Capacity Index: design specifications for a product with a standard deviation of 4 units

Design specifications require that a key dimension on a product measure 100 +/- 10 units.  A process being considered for producing this product has a standard deviation of 4 units

a) What can you say (quantitatively) regarding this process capacity
b) Suppose the average shits to 92, calculate new capacity
c) What can you say about the prices after the shift? What percentage of the items will be defective?


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The solution presents the formulas and calculations to solve the problems, and gives the answers.

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Umut Oltulu, MBA - 4.8/5
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