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Archy [21]
2 years ago
5

A process that produces computer chips has a mean of .04 defective chip and a standard deviation of .003 chip. The allowable var

iation is from .034 to .046 defective.a. Compute the capability index (Cp) for the process. (Round your intermediate calculations to 3 decimal places and final answer to 2 decimal places.) Capability index b. Is the process capable?1.No2.Yes
Business
1 answer:
FrozenT [24]2 years ago
3 0

Answer:

a) 0.667

b) Yes

Explanation:

Data provided in the question:

Mean = 0.04 chip

Standard deviation, s = 0.003 chip

Lower Specification Limit, LSL  = 0.034

Upper Specification Limit, USL = 0.046

Now,

a) Capability Index = ( USL - LSL ) ÷ ( 6 × s )

or

Capability Index = ( 0.046 - 0.034 ) ÷ ( 6 × 0.003 )

= 0.667

b) Cpk = min( [( USL - Mean) ÷ ( 3s ) , ( Mean - LSL) ÷ ( 3s ))

or

Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ),  ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))

or

Cpk = min( ( 0.046 - 0.04) ÷ (3 × 0.003 ),  ( 0.04 - 0.034 ) ÷ ( 3 × 0.003 ))

or

Cpk = min( 0.667, 0.667 )

Therefore,

Cpk = 0.667

as Cp and Cpk are equal

Hence, it is ideal condition and process is capable

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Access the EDGAR database (SEC.gov) and obtain the July 2018 form 10K filing (for the year ended May 31, 2018) for NIKE, Inc.
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<u>Solution and Explanation:</u>

Particulars                        2018  2017  2016

Revenues (a)                        36,397  34,350  32,376

Cost of sales (b)                20,441  19,038  17,045

Gross profit (c) = (a) - (b)  15,956  15,312  14,971

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\text { (c) } /(a) * 100                           43.8%  44.6%  46.2%

Monetary 2018 Compared to Fiscal 2017  

For monetary 2018, our merged gross edge was 80 premise focuses lower than financial 2017, essentially mirroring the accompanying components:  

• Unfavorable changes in net outside cash trade rates, including supports (diminishing gross edge roughly 90 premise focuses);  

• Lower NIKE Direct edge (diminishing gross edge roughly 10 premise focuses) reflecting higher blend of off-value deals in the principal half of financial 2018, which was in part balanced by edge extension in the second 50% of monetary 2018;  

• NIKE Brand the maximum ASP, net of limits, on a discount proportionate premise, which was level for financial 2018 as higher limits in the principal half of monetary 2018 were counterbalanced by higher the maximum ASP in the second 50% of the year; and  

• NIKE Brand item costs, on a discount equal premise, which were level.  

<u>Financial 2017 Compared to Fiscal 2016  </u>

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• Higher NIKE Brand the maximum ASP, net of limits, on a discount comparable premise (expanding gross edge around 70 premise focuses) lined up with our methodology to convey creative, premium items to the purchaser;  

• Higher NIKE Brand item costs (diminishing gross edge roughly 100 premise focuses) as an expansion in the blend of greater expense items and work input cost swelling more than balance lower material information costs;  

• Unfavorable changes in net remote money trade rates, including fences (diminishing gross edge around 90 premise focuses); and  

• Lower NIKE Direct edges (diminishing gross edge roughly 20 premise focuses) mirroring the effect of higher off-value deals.

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