A. Calculate the process capability index and the process capability ratio values.

The process capability index Cpk= (Enter your response rounded to three decimal places.)

The process capability ratio Cp= (Enter your response rounded to three decimal places.)

b. Suppose management would be happy with three-sigma performance. What conclusions is management likely to draw from the capability analysis?

Since Cpk is (fill in blank)

" the critical value, the process is (fit in blank) capable at the three-sigma level.

Since Cp, is (fill in blank) than

the critical value, this indicates that the process variability (fill in blank)

c. What remedial actions, if any, do you suggest that management take?

O A. Management should use a lower target process capability ratio

O B. The specification limits must be revised.

O C. The variability of the process must be greatly reduced.

O D. Nothing. The process is capable.

The McGranger Mortgage Company is interested in monitoring the performance of the mortgage process. Fifteen samples of five completed mortgage transactions each were taken during a period when the process was believed to be in control. The times to complete the transactions were measured. The McGranger Mortgage Company made some changes to the process and undertook a process capability study. The following data were obtained for 15 samples of size 5 . Based on the individual observations, management estimated the process standard deviation to be 3.36 (days) for use in the process capability analysis. The lower and upper specification limits (in days) for the mortgage process times were 3 and 18. \\[ \\begin{array}{l} -1 \\\\ 1 \\\\ 1 \\end{array} \\] a. Calculate the process capability index and the process capability ratio values. The process capability index \\( \\mathrm{C}_{\\mathrm{pk}}=\\quad \\) (Enter your response rounded to three decimal places.)