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

  Net present value of the project using the analysts baseline

Suppose that the City of Old York is considering building a recreation center. Its estimated construction cost is $12 million, and there will be annual staffing and maintenance costs of $750,000 over the 20-year life of the project. Calculate the net..

  Market is a chain of retail stores

Roger's Meat Market is a chain of retail stores that limits its sales to fresh-cut meats. The stores have been very profitable in northern cities. However, when two stores were opened in the south, both lost money and had to be closed. Roger, the own..

  Discuss four assumptions of the capital asset pricing model

Discuss four assumptions of the Capital Asset Pricing Model (CA PM) and explain how they do not agree with "real world" observations. Explain the concept of " regression to the mean " as it relates to the adjusted beta.

  Calculate the payback period and net present value

The cash flow for projects A, B, and C are given below.  - Calculate the payback period and net present value for each project.

  What is the expected return on a portfolio-two assets

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .99, what are the portfolio weights? If a portfolio of the two assets has a beta of 1.30, what are the portfolio wei..

  Held responsible for environmental violations

Why should companies be held responsible for environmental violations that occur at their suppliers operations?

  Compute intrinsic values and time values and lower bounds

Compute the intrinsic values, time values, and lower bounds of the following calls. Identify any profit opportunities that may exist.

  Technological advance impact your production-pricing plan

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to businesses. From the two businesses’ perspectives, the two products are indistinguishable. How will this technological adva..

  Calculate the accumulated value of this annuity

The annual effective interest rate is 12%. A ten-year continuous annuity makes payments totalling $30 during the first year, $40 during the second year, $50 during the third year, and so on. Within each year the payments are level. Calculate the accu..

  Considering the purchase of an outstanding bond

It is now January 1, 2014, and you are considering the purchase of an outstanding bond that was issued on January 1, 2012. It has a 8.5% annual coupon and had a 30-year original maturity. What is the yield to maturity?

  The expected return on the market

A share of stock sells for $53 today. The beta of the stock is .7, and the expected return on the market is 16 percent. The stock is expected to pay a dividend of $1.00 in one year. If the risk-free rate is 5.2 percent, what should the share price be..

  Maturity bond outstanding with an annual coupon rate

General Mills has a $1,000 par value, 17-year to maturity bond outstanding with an annual coupon rate of 9.72 percent per year, paid semiannually. Market interest rates on similar bonds are 11.60 percent. Calculate the bond’s price today.

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