Instruction 18-16 A Factory Supervisor Is Concerned That the Time It Takes

question 28

Short Answer

Instruction 18-16
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 five individuals per hour for a period of 10 hours. The sample mean and range for each hour are listed below.
She also decides that lower and upper specification limit for the critical-to-quality variable should be 10 and 30 seconds, respectively.
-Referring to Instruction 18-16,what is the value of the C_p index?

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Definitions:

Actual Cost

The real, total expenditure incurred in acquiring an asset, completing a project, or executing a transaction, including all relevant expenses.

Synergistic Benefits

The enhancements or improvements in performance, value, or effectiveness resulting from the merger or collaboration of two entities or systems.

Incremental Value

The additional benefit or cost that arises from a specific decision or action compared to an alternative.

Equity-Financed

A way of raising capital through the sale of shares in the company, thus granting shareholders partial ownership.