A Firm Has an Existing Process That It Would Like

question 18

Multiple Choice

A firm has an existing process that it would like to use for producing a part it will sell to an industrial customer.The customer requires that defective (out of specification) parts be kept to 3,000 parts per million (three-tenths of 1 percent) or less.A process capability study done on the process revealed that it has a process capability index (C_pk) of 1.00 for this part.What should the firm conclude from the study?

• A)The process is not capable,but with careful process control,it could be used to meet the customer's requirements.
• B)The process is highly capable,and when operating in control,a very high percentage of output will meet the customer's requirements.
• C)The process is not capable,and even with careful control,it will not be able to meet the customer's requirements.
• D)The process is capable,but just barely,and will require careful monitoring in order to meet customer requirements.

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Definitions:

Value-Added

The enhancement added to a product or service by a company before offering it to customers, representing the difference between the cost of inputs and the value of outputs.

Lean Principles

A management philosophy focused on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Service Businesses

Companies that provide intangible products or services, such as consulting, repair, or maintenance.

Non-Value-Added

Processes or activities that do not add value or contribute to the customer's perceived value of a product or service.