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A supplier was requested to deliver order within 25 to 35 days after receiving the Purchase Order. Use Delivery Time Data to perform the following:

A. Calculate the capability indices and provide your comments on the results.
B. Provide your recommendation to improve the supplier performance.

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Answer:

Step-by-step explanation:

To calculate capability indices, you would typically use statistical analysis based on the delivery time data. The capability indices commonly used are Cp, Cpk, Pp, and Ppk. These indices help assess how well a process is capable of meeting specifications.

Here are the steps to perform the analysis:

### A. Calculate Capability Indices:

1. **Determine the Process Mean (μ) and Standard Deviation (σ):**

- Calculate the mean and standard deviation of the delivery time data.

2. **Calculate Cp and Cpk:**

- Cp = (Upper Specification Limit - Lower Specification Limit) / (6 * Standard Deviation)

- Cpk = min((Upper Specification Limit - Mean) / (3 * Standard Deviation), (Mean - Lower Specification Limit) / (3 * Standard Deviation))

3. **Calculate Pp and Ppk:**

- Pp = (Upper Specification Limit - Lower Specification Limit) / (6 * Sample Standard Deviation)

- Ppk = min((Upper Specification Limit - Process Mean) / (3 * Sample Standard Deviation), (Process Mean - Lower Specification Limit) / (3 * Sample Standard Deviation))

### B. Provide Comments on the Results:

- **Cp and Pp:**

- If Cp and Pp are close to 1, it indicates that the process is capable of meeting the specifications. Values significantly less than 1 suggest that there is room for improvement.

- **Cpk and Ppk:**

- Cpk and Ppk measure process capability while considering the process mean. A value less than 1 indicates that the process mean is not centered within the specification limits.

- **Recommendations:**

- If Cp and Pp are satisfactory but Cpk and Ppk are low, it indicates that the process mean needs to be adjusted. The process may be capable, but it is not centered within the specifications.

### B. Recommendations to Improve Supplier Performance:

1. **Process Improvement:**

- Evaluate and improve the internal processes of the supplier to reduce variation in delivery times.

2. **Training and Resources:**

- Provide training and resources to the supplier to enhance their process capability and efficiency.

3. **Continuous Monitoring:**

- Implement a system for continuous monitoring of the delivery process to identify and address any deviations promptly.

4. **Root Cause Analysis:**

- Conduct a thorough analysis to identify the root causes of delays and address them systematically.

5. **Supplier Collaboration:**

- Collaborate with the supplier to establish clear communication channels and expectations for order fulfillment.

6. **Performance Metrics:**

- Implement key performance indicators (KPIs) to track and measure the supplier's performance regularly.

7. **Incentives and Penalties:**

- Consider implementing a system of incentives for meeting or exceeding delivery time targets and penalties for delays.

Remember, the specific recommendations may vary based on the actual results obtained from the capability analysis and the unique circumstances of the supplier and the industry.

User Roman Jaquez
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