Managing for Quality and Performance Excellence 10th Edition by James Evans ,William Lindsay

Exercise 42

Note: Data sets for several problems are available in the Excel workbook C07Data in the Student Companion Site for this chapter. Click on the appropriate worksheet tab as noted in the problem (e.g., Prob. 7-5, etc.) to access the data.
Two processes, P and Q, are used by a supplier to produce the same component, Z, which is a critical part in the engine of the BearingPort 778 airplane. The specification for Z calls for a dimension of 0.24 mm ± 0.03. The probabilities of achieving the dimensions for each process based on their inherent variability are shown in the table found in the worksheet tab Prob. 7-16 in the Excel file C07Data. If k = 60,000, what is the expected loss for each process? Which would be the best process to use, based on minimizing the expected loss?