Refer to Exercise 11-36. Suppose the manufacturer has the ability to center the process such that the
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Refer to Exercise 11-36. Suppose the manufacturer has the ability to center the process such that the average thickness of the coating is at 0.005mm, which is the target value. In doing so, the manufacturer estimates that the standard deviation of the process will be 0.018 mm. The cost of making this change in the process is estimated to be $1.50 per reel. Would it be cost-effective to make this change, compared to the original process? What would the annual savings or loss be if the annual production is 10,000 reels?
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Fundamentals Of Quality Control And Improvement
ISBN: 9781119692331
5th Edition
Authors: Amitava Mitra
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