THE PROBLEM:

Power Communications, Inc. $($PCI$)$ is currently a relatively small provider of specialized

communications equipment but hopes to grow significantly by becoming a supplier for the U$.$S$.$ Army.

To this end, PCI recently submitted a proposal to supply $$3,000,000$ worth of satellite telephones to

the Army annually for the next $5$ years, which will increase PCI$$s annual revenue by $20\%$ per year.

Because PCI was the leading contender among the three suppliers being considered for the contract,

the Army sent their Supplier Quality Assurance $($SQA$)$ team to PCI to perform an audit on PCI$$s quality

system, manufacturing processes, and satellite phone quality. After the audit was completed, the

Army team expressed concern about the communication frequency of the satellite telephone PCI will

be supplying to them. The Army$$s Request for Proposal $($RFP$)$ required the internal audio output

power of the telephone to be at least $1400$ mW in at least $98\%$ of the phones. However, the Army$$s

Supplier Quality team claims that their independent tests showed PCI$$s internal audio output power

to only be in this range in $94\%$ of the phones they sampled. The Army SQA team agreed to give PCI $30$

days to resolve this problem before awarding the contract to the $2$nd place supplier.

QUESTION $4$: Since your baseline estimate confirms that the percentage of phones in finished goods with

internal audio output power greater than $1400$ mW is below the Army$$s RFP requirement, your team

concludes that this power level must be improved to secure the Army contract. Assuming that the

variation in internal audio output power does not change, your team determines that the average internal

audio output level must be greater than $1470$ mW in order to meet the Army$$s requirement. Does your

current process meet this goal?

QUESTION $5$: Given the results of your previous analyses, your team begins searching for a solution for

increasing the average audio output power on your phones. Electrical engineers on your team explain that

the resistors used in the phone will affect the audio output power $-$ if they are higher than $40$ ohms, they

will reduce audio output power. They suggest that the team investigate whether the resistors in the

sampled phones meet the design specification of between $25$ and $40$ ohms. The audio resistor values in

$100$ resistors currently in PCI$$s inventory are measured, and it is found that $5$ of them exceed $40$ ohms.

Contracts with PCI$$s resistor suppliers all stipulate that no more than $1\%$ of the resistors sent to PCI will

have resistance values greater than $40$ ohms. Based on this sample, are PCI$$s resistor suppliers meeting

this contract requirement?

Work File Notes:

$$ Use two different methods to answer this question and explain whether the two methods provide the

same results or different results