Question

Processed material thickness is a critical dimension with specifications of [0.49, 0.51] and a designed target value of .50. Your internal customer has indicated that any time the thickness deviates from the design target by ±0.004, they are required to complete an $8.00 extra processing step.

1. compute the monetary constant, k.

2. Compute the average loss if your process has a YBAR =0.499 and s = .008

3. Find the total loss for one year if n= 100000 per year

4. If reducing s to .004 is estimated to cost $700000, will this improvement be a good investment? (Assume ybar remains .499)

Answer 1