Operations

Design specifications require that a key dimension on a product measure 100 kg plus and minus 3kg. If the value of the quality exceeds the target by the tolerance of 3 kg on either side, the product will be likely to fail during the warranty period and cost $480 for repair. A process being considered for producing this product has a standard deviation of 1.5 kg. (a) Compute the process capability ratio if the process is centered. Is it capable to meet the quality specification? Explain. (b) If the original process in (a) is incapable, what should be the standard deviation of the process to make it capable? (c) Suppose the original process average shifts to 99 kg, maintaining the current dispersion. Calculate the process capability index after the shift. Is it capable? (d) What is the average loss per unit after the shift as in (c)? Use Taguchi loss function for multi products case