An appliance manufacturer wants to contract with a repair, Operation Management

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An appliance manufacturer wants to contract with a repair

An appliance manufacturer wants to contract with a repair shop to handle authorized repairs in Indianapolis.

The company has set an acceptable range of repair time of 41.00 minutes to 83.00 minutes. Two firms have submitted bids for the work. In test trials, Firm A had a mean repair time of 60.00 minutes with a standard deviation of 4.00 minutes; and the other firm, Firm B, had a mean repair time of 61.00 minutes with a standard deviation of 4.50 minutes.

Compute the following capability indices for both firms:

Capability Index FIRM A FIRM B Lower: [a] [b] Upper: [c] [d] Process: [e] [f]

Given the minimum threshold value of 1.33 for process capability, which firm would you choose?

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