Question 5 - Quality control (6 marks) A factory needs to purchase metal bar components for its products with the specification of the length of 1,000 mm with +/- 1% tolerance. Currently, the factory requires 2,500 units of metal bars, and is considering two metal bars suppliers based on the quality performance of their production process along with the price as indicated below: Standard deviation Mean 1,001 mm 997 mm Supplier 1 Supplier 2 5 mm 6 mm Price per unit $10 $9 Based on the above information, answer the following questions: a. Calculate the process capability index of the two suppliers as well as their estimated percentage of defective metal bars against the factory's specification limit (2 marks) b. If all defective metal bars must be discarded, which of the two metal bars suppliers would you recommend to the factory? Provide the calculations of the costs associated and other factors that you consider in making your recommendation. (2 marks) c. If the metal bars that are too long can be cut to fit the specification limit (the cost of cutting the metal bar is $1.00 per unit), will that change your recommendation on the supplier's selection? Provide the calculations of the costs associated and other factors that you consider in making your recommendation. (2 marks)

Question 5-Quality control (6 marks) A factory needs to purchase metal bar components for its products with the specification of the length of 1,000mm with +/1% tolerance. Currently, the factory requires 2,500 units of metal bars, and is considering two metal bars suppliers based on the quality performance of their production process along with the price as indicated below: Based on the above information, answer the following questions: a. Calculate the process capability index of the two suppliers as well as their estimated percentage of defective metal bars against the factory's specification limit ( 2 marks) b. If all defective metal bars must be discarded, which of the two metal bars suppliers would you recommend to the factory? Provide the calculations of the costs associated and other factors that you consider in making your recommendation. (2 marks) c. If the metal bars that are too long can be cut to fit the specification limit (the cost of cutting the metal bar is $1.00 per unit), will that change your recommendation on the supplier's selection? Provide the calculations of the costs associated and other factors that you consider in making your recommendation. (2 marks)