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.

Using the sample data provided, if you decide to purchase from the supplier with the greatest value of Cpk, which supplier (A, B, or C) will you choose?

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

Formula for calculate the value of Cpk = Upper Specification limit - Lower specification limit/ 6 Cpk value for Suppliler A = 1.500-0.009/0.0030*6                                          =1.491/0.018                                          =82.83 For supplier B                   =1.500-0.009/0.0022*6                                          =1.491/0.0132                                          =112.95 For Supplier C                  =1.500-0.009/0.0015*6                                          =1.491/0.009                                          =165.67 For supplier C has the greatest Cpk value .Hence Supplier C can be choosen.

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