What is process capability index-sample standard deviations

Assignment Help Financial Management
Reference no: EM131349266

A new process is started, and the sum of the sample standard deviations for 25 subgroups of size 4 is 750. If the specifications are 70080:

a) What is the process capability index?

b) What action would you recommend?

c) What is the Cpk value for this process when the process average is 700, 780, and 820? Explain and say in which case the process is centered.

d) Compute the rejection rates in each case of question c)

e) A four sigma program is introduces at the company. The lower specification limit (LSL) and the process σ remain the same. Describe the Cp and Cpk reject rates and show the X-bar and R chart limits, using the same sample size.

f) Repeat for a six sigma program with 1.5σ shift, with the process average and sigma remaining the same.

Reference no: EM131349266

Questions Cloud

Find three advertisements that appeal to the needs for power : Find three advertisements that appeal to the needs for power, affiliation, and achievement and discuss their effectiveness. Find two examples of ads that are designed to arouse latent consumer needs and discuss their effectiveness
Describe the advantages of investing using adrs : Describe the advantages of investing using American Depository Receipts (ADRs). Help Mike Jones, one of Axetem's investment managers, with the following calculations.
What strategies worked and what did not work : All hospitals, clinics, and other medical facilities need to raise capital each year so that they can make improvements to the facility, purchase new technology, and build new facilities when it becomes necessary and appropriate. As a healthcare A..
Calculation of eps and retained earnings : The company is subject to a 40% tax rate and must pay $65,500 in preferred stock dividends before distributing any earnings on the 172,000 shares of common stock currently outstanding. Calculate? Everdeen's 2015 earnings per share? (EPS). If the firm..
What is process capability index-sample standard deviations : A new process is started, and the sum of the sample standard deviations for 25 subgroups of size 4 is 750. If the specifications are 70080: What is the process capability index? What action would you recommend? What is the Cpk value for this process ..
Estimate the splitting when two such wells are separated : Do not aim for great accuracy but make drastic approximations to get a simple expression for t that will tell you the order of magnitude of the splitting.
What strategies worked and what did not work : All hospitals, clinics, and other medical facilities need to raise capital each year so that they can make improvements to the facility, purchase new technology, and build new facilities when it becomes necessary and appropriate. As a healthcare A..
Amount of community benefits : Is there a significant difference between the amount of community benefits offered by nonprofit and for-profit hospitals?
Calculate return on equity using the dupont system : Calculate Return on Equity (ROE) using the DuPont system. Assess management performance by calculating Economic Value Added (EVA).

Reviews

Write a Review

Financial Management Questions & Answers

  Realistic assessment of the challenges facing new venture

Write a business plan for one of the two following ventures. Option A. Expanding a one-store operation to a two-store operation Assume you currently run a small retailing business in the lobby of a large office building. A realistic assessment of the..

  What was charge for depreciation and amortization

Talbot Enterprises recently reported an EBITDA of $6.0 million and net income of $1.5 million. It had $2.4 million of interest expense, and its corporate tax rate was 40%. What was its charge for depreciation and amortization?

  Prepare a financial forecast for the financial year

Prepare a financial forecast for the financial year ending January 31, 2016 to determine the company's investment and financing needs based on the expected growth.

  Find the accrued interest-calculate the dirty price

You purchase a corporate bond with a settlement date on December 15 with a face value of $1,000 and a coupon rate of 83/4%, that has a listed price of 102:12, and that pays interest semi-annually on March 15 and September 15. How much must you pay? a..

  Receives tax-free to redeem stock of deceased shareholder

Mad Golf Inc., a successful C corporation, has three shareholders: Larry, Brice and Joe. All the shareholders are in their early fifties. The company has a redemption buy-sell agreement funded with corporate-owned life insurance. If a shareholder die..

  Estimate that the market value of equity

We know the following about Carl & Co. Total assets are $200m, D is $60m, E is $130m, cash is $50m and the # of shares is 1m. We estimate that the market value of equity is 3 times the book value of it. Finally, a fire sale of the firm would bring 40..

  Annuity interest rate

(Annuity interest rate) Your folks just called and would like some advice from you. An insurance agent just called them and offered them the opportunity to purchase an annuity for $6,903.27 that will pay them $1,000 per year for 25 years. What rate o..

  Balance sheet equity-what is target stock price in one year

Fly Away, Inc., has balance sheet equity of $6.6 million. At the same time, the income statement shows net income of $798,600. The company paid dividends of $403,293 and has 100,000 shares of stock outstanding. If the benchmark PE ratio is 30, what i..

  Assuming discount rate-present value of a perpetuity

Calculate the following values, assuming a discount rate of 8%: a. present value of a perpetuity (also called a perpetual annuity) of $50 received each year at the end of each year PV of perpetuity = A/i where A is annual payment and i is disc rate S..

  Vital to any ratio analysis are the steps of gathering

assignment 3 calculating financial ratiosvital to any ratio analysis are the steps of gathering financial data and

  What is minimum acceptable expected return for stock

Assume you are a fund manager at a large mutual fund, handling the retirement savings of your clients. Based on the risk preferences of your clients, you require that all stocks held must have a Sharpe Ratio of at least 1.5. what is the minimum accep..

  Number of theories of the term structure of interest rates

There are a number of theories of the term structure of interest rates including the unbiased expectations hypothesis, preferred habitat hypothesis, and market segmentation hypothesis. Discuss the implications of the unbiased expectations hypothesis ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd