As a Purchasing Manager, you need to make some decisions regarding the procureme

Question

As a Purchasing Manager, you need to make some decisions regarding the procurement of bolts from three different suppliers: Supplier A, Supplier B, and Supplier C. The diameter at the end of the bolt has specifications of 1.500 ± 0.009 inches. Each of the three suppliers have reported the sample mean and sample standard deviation of their bolt diameters computed from random samples of their production runs. The suppliers’ statistics are provided in the following table.

Based on the sample data provided, what is the value of Cp for Supplier A?

Supplier Sample Mean
(inches) Sample Standard Deviation
(inches) A 1.500 0.0030 B 1.500 0.0022 C 1.495 0.0015

Explanation / Answer

The formula for calculaing Cp = Upper Specifications limit -Lower specification limit/6 Cp for supplier A            Cp = 1.500-0.009/ 6                                               =1.491/6*0.0030                                               =1.491/0.018                                               =82.83

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