Giordano_The Computer Hardware Company Specifications-Requirements

The computer hardware company requires all of its chips purchased from its supplier of computer chips to meet specifications of 1.2 cm with the margins of error of plus and minus 0.1 cm. Based on the computer chip supplied last month, the mean length of a computer chip was 0.9 cm. What are the elements that the production manager should consider in determining his company's ability to produce chips that meet specifications? The elements that the production manager should consider when determining his company’s ability to produce chips that meet specifications are the mean lengths of the chips currently being produced, their own margin of error, the complexity of the chip creation process, and how much money it would take to either update/change the equipment to produce the required length chips or hiring programmers/employees who can affect the length of the chip during the design and creation process. 1. Do the chips that were supplied meet the desired specifications? The chips that were supplied do not meet the desired specifications, as they do not fall within margin of error of the target 1.2 cm length, which is +/- .1 cm. 2. What reasons would you provide to justify that the supplier is meeting specifications? As shown by the graph below, the supplier is not meeting the specifications, as 0.9 cm clearly falls into the significant range, showcasing it is not in the acceptable length limits. However, as the production manager | could make the argument that the mean length being 0.9 cm could mean that a portion of the chips ARE closer to the 1.1 cm length, but there are simply too many falling below that threshold to bump the mean of the sample size up. 3. How will this decision impact the supplier's sales and net profit? This decision could affect our sales and net profit by losing a large amount of business from the computer hardware company, who is requiring a firm measurement of the chip length. In order to change our chip creation process to meet the required length, we may need to invest into our production machines, design software, or employee base in order to meet this specific company’s demands. This initial investment could be costly and as a result, could not return a profit until sales between us and the computer hardware company resume. 4 ’ Insignificant; shaded portion Significant; portion showcases acceptable chip lengths outside of shaded portion showcases 31 unacceptable chip lengths 24 Measured mean of 0.9 cm clearly falls outside of the acceptable chip p. length realm - | tittill—] ITERTITFRTTTFISTTTRSTIRTRSTTTRSRTRR ITT T —m : 09 10 11 12 13 14 T ()