A manufacturer of computer chips has a computer hardware com

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). Show working 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?

Solution

1) Production manager should strictly plan the flow of work at each level so that this specification is met. From the supply of mat, labour and others to the part of manufacturing, inspection, remedical measures to improve constantly should be done then only the specification can be met

2)The confidence interval (0.9, 1.1) showsthat mean = 1 cm which is below the specification of 1.2 cm

Hence the chips produced do not meet the desired specifications

3) Last month any abnormal reason such as natural calamity, or labour unrest or scaricity of materials, or labour like that is there the production manager can justify. Otherwise in the normal course he cannot justify this level.

4) If improvement is done, quality will increase which in turn increases production sales, and profit