#Minitab cost series#

Below this visualization, a green button, 'Parameter Optimization,' appears guiding Neil to the next step: optimizing his inputs. The process performance measurement (Cpk) for this process is 0.4816, far short of the minimum standard of 1.33.

UNDERSTANDING THE RESULTS AND PARAMETER OPTIMIZATION Then he hits the green Simulate button near the top and Minitab Workspace completes 50,000 simulations for the process within just a couple seconds: He knows these factors have a normal distribution, so he selects Normal from the dropdown menu and then enters the means and standard deviations as well as the upper and lower specification limits. The equation automatically pulls in transfer position and injection speed as X inputs. Neil clicks the option for importing the model from Minitab and chooses his Minitab file. They generate a Pareto Chart showing that transfer position and injection speed are the factors they want to focus on, and the equation they are going to use in Minitab Workspace:

#Minitab cost series#

Neil and his team planned and conducted a series of experiments in Minitab to determine significant factors in the process. Monte Carlo Simulation uses a mathematical model of the system and the simulation provides expected values based on an equation defining the relationship between the inputs and outputs. So he sets out to simulate some potential results in order to make a well-informed decision before telling the suppliers what to change in their processes. It could be cumbersome and time-consuming to try to make improvements if they don't make their directions for both of their suppliers as precise as possible, though. If Neil's team can reduce that scrap rate, which costs them $0.70 per unit, they can see cost savings upwards of $165,000 every year.

A scrap factor is a percentage of the batch that you can anticipate will be destroyed or ruined during manufacturing or processing operations (for instance if you are making 100 units and have 7% scrap historically and 93% of the batch is good, you would divide 100 by 0.93 and round up, determining that you need to make 108 units). In the past Neil, a product engineer at Spaceman, has instructed the production line managers to implement a scrap factor of 7% to account for some units not fitting well enough into the product.