Chap 8 #5 p319
5. Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company’s quality. For each bike
rental, there are four types of customer complaints: (1) bike not working properly, (2) bike wrong size, (3)
bike uncomfortable, and (4) bike broken during operation. During the past week, his company rented
280 bikes. He received twenty-six total complaints.
What is his company’s DPMO for the past week?
What is their Six Sigma operating level?
If Jim wanted to operate at the five-sigma level, what would his errors have needed
to be over the past week?
Chap 7 Case 3. Crabtree Electronics*
Sylvester Bush owns Crabtree Electronics. His business has been going very well since he opened a few
years ago. Most of his customers are other small businesses that need electronic parts such as circuit
boards, transistors, resistors, capacitors, etc. A small percentage of his customers are hobbyists who
enjoy building their own home sound systems and other items.
As with many businesses today, Crabtree Electronics is feeling a bit of a pinch because the overall
economy isn’t doing well. Sylvester is confident that business will eventually pick up; however, until then
he needs to tighten his belt a bit. One area that he hasn’t monitored as closely as he should is inventory.
Sylvester knows that excess inventory is just money sitting on the shelf. In the past, he has used his gut
as the driver of what and how much he should purchase. His understanding of his customers and their
needs has been sufficient so far.
Sylvester wants to do more than just save some money now during the lean times. He wants to establish