Operations Management question (Specification Limits): Ecril Technologies makes car parts using vacuum-formed moulds. The President wants the...

Cp and Cpk
are measures of process capabilityknown as the process capability ratios, where Cpk is
"two-sided," meaning it takes the lowest value between both halves of the capability
to determine the weakest point in the process's capability.

Cp is calculated
by subtracting the Lower Spec Limit from the Upper Spec Limit and dividing by 6 Standard
Deviations, or (1945 - 1297)/(6 * 81), which equals 1.333.

To determine Cpk,
you have to find the process capability for the upper and lower bounds, which is (USL -
average)/(3 * standard deviation) and (average - LSL)/(3 * standard deviation). Then, you'll
take whichever of the resulting values is lower.

(1945 - 1459)/(3 * 81) =
2

(1459 - 1297)/(3 * 81) = 0.667

Therefore, the lower of
these two values is 0.667, which is the Cpk.

Depending on what your
specifications are, the president may determine that this is acceptable, but typically you
prefer a Cpk above 1 and closer to 2. The president would likely determine that this process is
out of...