The time to check out guests at a hotel was measured over the course of several weeks. Management believes that the target time for checking out guests should be between 2 and 4 minutes with a target of 3 minutes. The data gathered had a mean time of 2.75 minutes with a standard deviation of 0.4 minutes. Find and interpret Cp, Cpl, Cpu, and Cpk in the context of this situation


Cp = (USL - LSL)/6s = (4 - 2)/(6 x 0.4) = 0.833
Cpl = (µ- LSL)/3s = (2.75 - 2)/(3 x 0.4) = 0.625
Cpu = (USL - µ)/3 s = (4 - 2.75)/(3 x 0.4) = 1.041
Cpk = min(0.625, 1.04) = 0.625

The Cp value suggests that the process is not capable of meeting specifications. The value of Cpu is slightly greater than 1, indicating that the process can meet the upper limit target of 4 minutes nearly all the time. The value of Cpl (and thus Cpk) suggests that the process cannot meet the lower specification limit of 2 minutes. However, this must be viewed in the context of service, assuming that a shorter time is preferable from the perspective of guest satisfaction. Thus a value of Cpl< 1 in this situation is not bad, and in fact, means that the process is actually better than the target that management has specified.

Business

You might also like to view...

Claire’s boss attempts to influence her by providing relevant resources and assistance. Her boss is using which influence tactics?

A. collaboration B. legitimating tactics C. consultation D. rational persuasion

Business

The St. Louis Symphony is an example of which type of organizational customer?

A. resident buyer B. nonprofit C. intermediary D. wholesaler E. government

Business

Which of the following does your author suggest is NOT a lesson learned from the the Great Recession of 2007 -2009?

A) Individuals and firms that took on too much debt suffered dramatically. B) Firms and individuals that relied too heavily on short-term debt to finance long-term assets suffered when financial liquidity dried up. C) The crisis started in and was mostly limited to the collapse of the U.S. housing market. D) All of the above.

Business

What is the intrinsic value of a foreign currency call option? What is the intrinsic value of a foreign currency put option?

What will be an ideal response?

Business