SCENARIO 18-4
a Factory Supervisor Is Concerned That the Time

question 20

Short Answer

SCENARIO 18-4
A factory supervisor is concerned that the time it takes workers to complete an important production
task (measured in seconds) is too erratic and adversely affects expected profits. The supervisor
proceeds by randomly sampling 5 individuals per hour for a period of 10 hours. The sample mean and
range for each hour are listed below. $$\begin{array} {ccc} \underline {\text { Hour }} & \underline { \bar { X } } & \underline { R } \\1 & 18.4 & 25 \\2 & 16.9 & 27 \\3 & 23.0 & 30 \\4 & 21.2 & 23 \\5 & 21.0 & 24 \\6 & 24.0 & 25 \\7 & 19.3 & 12 \\8 & 15.8 & 14 \\9 & 20.0 & 13 \\10 & 23.0 & 11\end{array}$$ She also decides that lower and upper specification limit for the critical-to-quality variable should be
10 and 30 seconds, respectively.
-Referring to Scenario 18-4, what is the value of the CPU index?

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Definitions:

Anticipated Profits

Expected financial gains based on projected business activities, market conditions, and strategies, before they are actually realized.

Marginal Benefit

The surplus benefit or joy experienced upon consuming an additional unit of a good or service.

Expected Profit

The anticipated return on an investment or business venture after considering all relevant costs and revenues.

Optimal R&D

The most efficient level of investment in research and development activities that maximizes the benefits from new knowledge and products.