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Chapter 10, Problem 37P
Summary Introduction

To determine: The delay and sample size.

Introduction: Sample size refers to the number of observations that are necessary to determine the cycle time. The major goal of sample size is to determine inferences about the population from the observations.

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Supervisor Tom Choi at Tempe Equipment Companyis concerned that material is not arriving as promptly as needed atwork cells. A new kanban system has been insta lled, but there seemsto be some delay in getting the material moved to the work cells sothat the job can begin promptly. Choi is interested in determininghow much delay there is on the part of his highly paid machinists.Ideally, the delay would be close to zero. He has asked his assistantto determine the delay factor among his 10 work cells. The assistantcollects the data on a random basis over the next 2 weeks anddetermines that of the 1,200 observations, 105 were made while theoperators were waiting for materials. Use a 95% confidence leveland a ±3% acceptable error. What report does he give to Choi?
upervisor Tom Choi at Tempe EquipmentCompany is concerned that material is not arriving aspromptly as needed at work cells. A new kanban system hasbeen installed, but there seems to be some delay in getting thematerial moved to the work cells so that the job can beginpromptly. Choi is interested in determining how much delaythere is on the part of his highly paid machinists. Ideally, thedelay would be close to zero. He has asked his assistant todetermine the delay factor among his 10 work cells. The assistant collects the data on a random basis over the next 2 weeksand determines that of the 1,200 observations, 105 were madewhile the operators were waiting for materials. Use a 95% confidence level and a {3% acceptable error. What report does hegive to Choi?
Recently, some operations management experts have begun insisting that simply maximizing process velocity, which actually means minimizing the time it takes to process something through the system, is the single most important measure for improving a process. Can you think of a situation in which this might not be true?
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