The KPOV from a process yielded the following: Conduct a COPQ/CODND assessment relative to a one-sided upper specification limit of 115 considering the following current policies within the company: •...

The KPOV from a process yielded the following:

Conduct a COPQ/CODND assessment relative to a one-sided upper specification limit of 115 considering the following current policies within the company:

• Whenever a response greater than 115 is encountered it costs the business $50.00.

• Next year’s annual volume is 1,000,000 units for the 220 days of production. Assume that the 20 days in the data set are representative of the entire year.

• The current procedure for tracking this metric is to test five samples per day. If any one of the five samples is beyond 115, a root cause investigation team is assembled to fix the problem. On average the costs for this fixing activity is $50,000 per occurrence, which considers people’s time and lost output.