The computer hardware company requires all of its chips purchased from its supplier of computer chips to meet specifications of 1.2 cm with the margins of error of plus and minus 0.1 cm.
Based on the computer chip supplied last month, the mean length of a computer chip was 0.9 cm.
What are the elements that the production manager should consider in determining his company’s ability to produce chips that meet specifications?
1.1) Do the chips that were supplied meet the desired specifications?
2.2) What reasons would you provide to justify that the supplier is meeting specifications?
3.3) How will this decision impact the supplier’s sales and net profit?
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