A metal fabricator produces connecting rods with an outer diameter that has a 1 ± 0.02 inch specification. A machine operator takes several sample measurements over time and determines the sample mean outer diameter to be 1.005 inches with a standard deviation of 0.003 inches.
a. calculate the process capability index for this example.

Mystic bottling company bottles popular beverages in the bottling department. the beverages are produced by blending concentrate with water and sugar. the concentrate is purchased from a concentrate producer. the concentrate producer sets higher prices for the more popular concentrate flavors. a simplified bottling department cost of production report separating the cost of bottling the four flavors follows: