MGMT Disc 3

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Mgmt discussion question.

1. Normal Distribution: Operations and production managers often use the normal distribution as a probability model to forecast demand in order to determine inventory levels, manage the supply chain, control production and service processes, and perform quality assurance checks on products and services.  The information gained from such statistical analyses help managers optimize resource allocation and reduce process time, which in turn often improves profit margins and customer satisfaction.

Based on your understanding of the characteristics of the normal distribution, examine the chart below.  Process A standard deviation is .9, Process B standard deviation is 1.4, and the mean of both processes is 12.  Contribute to our discussion by posting a response to ONE of the questions below.

 

 

1. Do either of the processes fit a normal distribution?  Why or why not?

2. Which of the processes shows more variation?  What does this mean practically?

3. If the product specification quality limits were 12 +/- 3, which of the processes more consistently meets specification? Explain why.

4. If the product specification quality limits were changed to 12 +/- 6, is quality loosening or tightening?  Which process would benefit the most from this change? 

5. Are there processes at your place of employ that you believe follow a normal distribution?  If so, describe one.  Why do you believe it is normal?

Reading: Openstax Introductory Business Statistics Chapter 8 https://openstax.org/books/introductory-business-statistics/pages/8-introduction Confidence interval, single population mean, standard deviation unknown https://courses.lumenlearning.com/boundless-statistics/chapter/confidence-intervals/ Optional Web sites Confidence interval for a population proportion http://www.peoi.org/Courses/Coursesen/statcoll/ch/ch8c.html Confidence interval of difference of means https://www.khanacademy.org/math/probability/statistics-inferential/hypothesis-testing-two-samples/v/ confidence-interval-of-difference-of-means Confidence limits for the mean http://www.itl.nist.gov/div898/handbook/eda/section3/eda352.htm Confidence Interval Estimation http://stattrek.com/estimation/confidence-interval.aspx https://learn.saylor.org/course/view.php?id=28&sectionid=276