A Manufacturer Of Computer Chips Has A Computer Hardware Com

A Manufacturer Of Computer Chips Has a Computer Hardware Company As It

A manufacturer of computer chips has a computer hardware company as its largest customer. The computer hardware company requires all of its chips to meet specifications of 1.2 cm. The vice-president of manufacturing, concerned about a possible loss of sales, assigns his production manager the task of ensuring that chips are produced to meet the specification of 1.2 cm. Based on the production run from last month, a 95% confidence interval was computed for the mean length of a computer chip resulting in: 95% confidence interval: (0.9 cm, 1.1 cm)

1. What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?

2. Do the chips produced meet the desired specifications?

3. What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications?

4. How will this decision impact the chip manufacturer’s sales and net profit?

Paper For Above instruction

The primary concern of the production manager is to ascertain whether the manufacturing process consistently produces computer chips that meet the required specification of 1.2 cm in length. To evaluate this, the manager must carefully analyze several elements, including the statistical data obtained from the recent production run, specifically the confidence interval for the mean chip length. The 95% confidence interval of (0.9 cm, 1.1 cm) indicates that, with 95% certainty, the true mean length of the chips lies within this range. Since the target specification is 1.2 cm, and the confidence interval's upper bound is 1.1 cm, the current process appears to produce chips that are, on average, slightly below the desired length, potentially failing to meet the specifications. Additionally, the manager should consider the process variability (e.g., standard deviation and control limits) to determine if the process is under statistical control or if adjustments are needed to produce chips closer to 1.2 cm consistently. Examining process capability indices such as Cp and Cpk would help quantify how well the process aligns with the specifications (Montgomery, 2019). Furthermore, the sample size, sampling method, and recent process changes should also be considered to assess the reliability of the data and whether more extensive monitoring is necessary. Critical to this assessment is understanding whether the process is stable and capable, which directly relates to whether the chips can meet the targeted specification consistently.

Regarding whether the chips meet the desired specifications, the statistical evidence suggests otherwise. The confidence interval (0.9 cm, 1.1 cm) does not include the specified 1.2 cm, indicating that the current process produces chips with a mean length that falls short of the specification. This implies that a significant proportion of chips may be below the required size, risking non-compliance with customer standards and potential rejection.

To justify the current production quality to the vice-president, the production manager should analyze and present process capability data, such as Cpk values, which measure how well the process fits within specification limits. If these indices suggest the process is not capable, they should recommend improvements like process adjustments, equipment calibration, or enhanced quality control procedures. The manager must also emphasize that the process is stable but requires refinement to meet the 1.2 cm target reliably. Furthermore, demonstrating that the process is under statistical control and that deviations are within acceptable limits can support claims of ongoing compliance with quality standards once adjustments are implemented.

The decision to continue with the current process or to initiate improvements will influence the company’s sales and profitability. If the manufacturer proceeds without addressing the process shortcomings, it risks supply chain disruptions and losing its key customer due to non-compliance with specifications. Conversely, investing in process improvements may lead to better quality chips, increased customer satisfaction, and a stronger business relationship, ultimately enhancing sales volume and profitability (Pyzdek & Keller, 2014). Moreover, consistent quality reduces waste and rework costs, positively impacting net profit margins.

In conclusion, the production manager must evaluate the statistical evidence critically, recognize the current process limitations, and implement necessary improvements to meet customer specifications consistently. Maintaining high-quality standards is essential for long-term success, customer retention, and sustainable profit growth.

References

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