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By design, a required dimension on a part is 0.575 cm plus or minus 0.008 cm. Assume that the process producing this part is stable with a mean of 0.579 cm and standard deviation of 0.002 cm.
a. What are the specification limits on this part?
b. Compute the Cp index.
c. Compute the Cpk index.
d. Which index is a better measure of the process capability in this instance? Explain.
Direct Costs
Expenses that can be directly traced to the production of specific goods or services.
Indirect Costs
Expenses that are not directly tied to the production of goods or services, such as overhead, administration, and salaries.
Salespersons' Salaries
Fixed or variable payments made to sales staff as compensation for their services, typically involving a base salary and possibly commissions.
Direct Costs
Costs that can be directly traced to a specific product, project, or activity without any ambiguity.
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