Question

) An internet retailer is promising delivery on all orders between 24 and 36 hours. For...

) An internet retailer is promising delivery on all orders between 24 and 36 hours. For the last month delivery

times have averaged 30 hours with a standard deviation of 4 hours.

            a) What is the process capability index and sigma of the process for the retailer's delivery service?

            b) What should the standard deviation of the delivery time be reduced to to reach 6 sigma quality?

Business   Operations-Management   
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Answer #1

Process capacity index is nothing but the statistical measure of process capacity to identify whether output is produced within customer's specification limits. The standard Cpk level is 2.0 for the six sigma process.

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