- The outside diameter of a part used in a gear assembly is known
to be normally distributed with a mean 40mm and standard deviation
of 2.5mm. The specifications on the diameter are:
Upper Limit = 45mm and Lower Limit =
36mm which means that the part diameters between these limits are
considered acceptable.
- Find the percentage of production outside upper limits
(Rework)
- Find the percentage of production outside upper limits
(Scrap)
- What percentage is acceptable?
- If unit cost of rework is $0.20 and unit cost of scrap is $0.50
find the total daily cost with daily production of 2000