Final answer:
The process capability index (Cpk) measures how well a process can produce output within design limits. To calculate Cpk, you need the process mean, standard deviation, and specification limits. The goal is a Cpk value of at least 1.33 to meet customer expectations.
Step-by-step explanation:
The process capability index (Cpk) is a statistical tool used to measure the ability of a process to produce output within specified design limits. To calculate Cpk for a GE insurance claims process, you need to know the process mean (µ), the process standard deviation (σ), and the upper and lower specification limits (USL and LSL). The formula for Cpk is:
Cpk = min[(USL-µ)/(3σ), (µ-LSL)/(3σ)]
The Cpk value indicates how well the process is centered between the specification limits and the capability of the process to meet those specifications. A Cpk value of at least 1.33 is generally considered to meet customer expectations in many industries. If the Cpk value is less than 1, the process is not capable and needs improvement.
Steps to Calculate Cpk:
- Determine the upper and lower specification limits (USL, LSL).
- Calculate the process mean (µ) and standard deviation (σ).
- Subtract the mean from the USL, divide by 3 times the standard deviation to find the upper capability (Cpu).
- Subtract the LSL from the mean, divide by 3 times the standard deviation to find the lower capability (Cpl).
- Choose the smaller value between Cpu and Cpl and that is the Cpk.
To determine if the GE insurance claims process meets customer expectations, compare the Cpk value to the target, typically 1.33.
The complete question is: Calculate the process capability index (Cpk) for a GE insurance claims process and determine if it meets customer expectations based on the specified design limits. is: