Unformatted text preview: is using a process which produces parts whose length have a mean 2 . 5in and standard deviation . 015in. You plan to make 100,000 of these parts. You have determined by taking into account the rework cost and the loss of customer satisfaction that the quality loss function for the process is: L = 2250 2 where is the standard deviation of length of the part and L is the average quality lost in dollars per part. A very smart but somewhat expensive Harvard graduate has oered you her expert advice on your process. or every . 001in reduction in the standard deviation of the length of the part, she will charge 6000. How much of her advice do you buy? (You can buy fractional amounts of her consulting). 1...
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 Spring '04
 JungHoonChun
 Normal Distribution, Standard Deviation

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