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ABC Company is currently considering using one of several suppliers for a new part. For the part, ABC Company's upper specification limit (USL) is 12.6 centimeters (cm) and its lower specification limit (LSL) is 9.9 centimeters (cm). ABC Company wants both the process capability ratio and process capability index to be at least 1.20 at the minimum.

Supplier 123 Company is currently operating with a mean of 11.3 and a standard deviation of 0.36 cm.

Can supplier 123 Company meet ABC Company's specification requirements at this time? If it cannot, explain if it is due to a drifting of the mean or too much variability.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93127373

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