A manufacturer of computer chips has a computer hardware company as its largest

Question

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) What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications? Do the chips produced meet the desired specifications? What reasons should the production manager provide to the vice-president to justify that the production team is meeting specifications? How will this decision impact the chip manufacturer’s sales and net profit?

Explanation / Answer

the production manager should keep in mind that the chips are produced in the last month only and all the chips have the length of 1.2cm. Manager should be very conscious when measuring the chips.

As the confidence interval is from (0.9,1.1)cm with 95% confidence then the mean of the measurement of the chips will be between 0.9 and 1.1 and all these chips will not be able to have a specification of 1.2cm. therefore the company does not have required specification

the manager can give the reason of manufacturing defect in the production of chips

the decision of the manager will impact in the loss of sales of chips as most of the chips are not according to the specifications.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.