Question
The output of a manufacturing process is normally distributed with mean 100 and standard deviation 2. Suppose that the lower specification limit is 97 and
The output of a manufacturing process is normally distributed with mean 100 and standard deviation 2. Suppose that the lower specification limit is 97 and the upper specification limit is at 102.
What proportion of the process output is within the specifications?
Now suppose that units that are above the upper specification must be scrapped at a cost of $5 per unit, while units that are below the lower specification limit can be reworked at a cost of $1 per unit. If the process mean can be adjusted relatively easily, what action would you recommend to minimize the costs that are being incurred due to scrap and rework?
please help question 2 .
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