A metal-cutting operation has a target value of 20 and consistently averages 19.8 with a standard deviation of 0.5. The design engineers have established an upper specification limit of 22 and a lower specification limit of 18. What is the process capability index? A) 1.20 B) 1.33 C) 1.46 D) 1.66 12. Following Q11, what is the process capability ratio? A) 1.33 B) 1.50 C) 1.66 D) 2.00

process capability  index =  Cpl ( lower ) = 1.20 ( A )

The process capability ratio = 1.33

Explanation:

Target value = 20

mean = 19.8

standard deviation = 0.5

upper specification limit = 22

lower specification limit = 18

The process capability index =

Cpu =   = 4 / 3 = 1.33

Cpk ( upper ) = (22 - mean ) / 3 * std

                      = ( 22 - 19.8 ) / ( 3 * 0.5 ) = 2.2 / 1.5 = 1.47

Cpl ( lower ) = ( mean - 18 ) / ( 3 * 0.5 ) = ( 19.8 - 18 ) / 1.5

                    = 1.8 / 1.5 =  1.2

hence the process capability index is Capability index with the minimum value which is Cpl ( lower ) = 1.20 ( A )

The process capability ratio = 1.33 refer to Cpu equation

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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