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6Sigma homework 1-10

# 6Sigma homework 1-10 - 3 A process has 6 steps with the...

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Courteous order entry Low prices Quick delivery Growth in shareholder value Teamwork Responsive technical support Personal employee growth Low production costs •Innovative product features •High return on investment •Constant technology innovation •High quality •Motivated employees •Unique products •Small, lightweight designs IE 7610 Homework 1 Due Feb 3 1. Affinity Diagram (KJ Method) In an internal survey about how to make your company to be more successful, the following items of ideas are obtained: Develop an affinity Diagram from those items of ideas with groups and headings, and explore if any major groups of ideas are missing:

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2. The following data were collected over time as follows Characteristic D(Defects ) U(units ) O (opportunity per unit) A 56 300 88 B 44 350 75 C 30 55 32 D 83 50 60 E 95 630 70 F 53 800 40 Compute DPU,DPO and DPMO for each characteristic. Rank DPMO for each characteristic from highest to smallest.
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Unformatted text preview: 3. A process has 6 steps with the following data Ste p Defects Units 1 12 380 2 72 943 3 22 220 4 85 1505 5 23 155 6 23 255 Compute DPU and operation yield for each step. Determine the rolled throughput yield. 4. A Six Sigma project needs initial investment of \$20,000 at July 2003, which includes training fee, consulting fee and other expenses. The costs and benefits of this project is listed in the following table: Time July 1 2003 Oct 1 2003 Jan 1 2004 Apr 1 2004 July 1 2004 Oct. 1 2004 Jan 1 2005 Apr 1 2005 July 1 2005 Cost \$20k 4.5k 1.5k 1.5k Benefit 3.5k 5.5k 4.5k 4.5k 4.5k 4.5k 4.5k 4.5k If the capital cost within company is i=10% per year. a) By using NPV, is this project worthwhile? b) What is the project’s IRR? c) What is this project’s payback period (in month)?...
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