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Wild Widgets - Customer demand; process capability index

BACKGROUND INFORMATION

In this module, you will explore a technique that can be used to determine if your organization’s process can meet customer demand by determining the process capability index (Cp). Cp is more commonly seen today when discussing six-sigma, which indicates the tolerance interval for a process (or step) that is 12 standard deviations wide and results in a Cp = 2.0. For this discussion scenario, let us assume that you are the owner of Wild Widgets, a widget manufacturing firm located in International City.

Your widgets are very popular, and demand continues to grow each year. Several of your customers continue to ask for widgets that require more restrictive specification limits as these companies are incorporating your widgets into ever-shrinking housing units. Several of your managers have expressed concern that next year, your widget maker will not be able to meet the desired specification limits (as shown in provided MS Excel data file). You have data for this year (You will use data provided in MS Excel file).

This discussion addresses the following Module Outcome:

·         Determine if an operation is operating in accordance with Lean principles. (CO1, CO2, CO3, CO6)

DISCUSSION PROMPT

You know that Wild Widgets customers are becoming increasingly more demanding (tighter specifications). It is time to analyze the data for this year (located in the Excel Data File [XLSX, file size 32.3 KB]) and make some operational decisions. **Attachment**

TASKS

1.      Answer the following:

a.       What year (use “Current Year + number) will your widget machine no longer be able to meet specifications? Explain how you determined this and Include a graph showing the distribution and tolerance information.

b.      What is your next steps? Explain your reasoning.

c.       Will you inform your customers that you will not be able to meet their demand in Current Year + number? Why or why not?

Please answer question 1 under Task. Your response should be approximately 1.5 pages.

Wild Widgets - Customer demand; process capability index

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