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Suppose that the company can maintain an average weight of 504 ounces and a standard deviation (σ) of 4 ounces. The company does not believe it can improve on these values. The company wants to see if the industry group would be willing to adjust its spec limits rather than keep them at 486 and 514 so that Older then Dirt can meet the minimum Cpk of 1.10. What should the company tell the industry group that the spec limits need to be to achieve a Cpk of 1.10 or greater? Why?The Older Then Dirt potting soil company uses a machine to fill 500-ounce bags of enriched potting soil. The industry group has set limits on what can be called a 500-ounce bag: a 500-ounce bag of dirt must weight at least 486 ounces and not more than 514 ounces. The company wants to operate its process at a minimum process capability of 1.10.

Suppose that the company can maintain an average weight of 504 ounces and a standard deviation (σ) of 4 ounces. The company does not believe it can improve on these values. The company wants to see if the industry group would be willing to adjust its spec limits rather than keep them at 486 and 514 so that Older then Dirt can meet the minimum Cpk of 1.10. What should the company tell the industry group that the spec limits need to be to achieve a Cpk of 1.10 or greater? Why?

Operation Management, Management Studies

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