Presentation on theme: "Candy Capability Operations Management Dr. Ron Lembke."— Presentation transcript:
Candy Capability Operations Management Dr. Ron Lembke
Tolerance Limits for food? Underfilling who would notice? Overfilling – would anyone care?
Packaged Goods What are the Tolerance Levels? What we have to do to measure capability? What are the sources of variability?
Production Process Make Candy PackagePut in big bags Make Candy Mix Mix % Candy irregularity Wrong wt.
Processes Involved Candy Manufacturing: Are M&Ms uniform size & weight? Should be easier with plain than peanut Percentage of broken items (probably from printing) Mixing: Is proper color mix in each bag? Individual packages: Are same # put in each package? Is same weight put in each package? Large bags: Are same number of packages put in each bag? Is same weight put in each bag?
Weighing Package and all candies Before placing candy on scale, press “ON/TARE” button Wait for 0.00 to appear If it doesn’t say “g”, press Cal/Mode button a few times Write weight down on form
Candy colors 1. Write Name on form 2. Write weight on form 3. Write Package # on form 4. Count # of each color and write on form 5. Count total # of candies and write on form 6. (Advanced only): Eat candies 7. Turn in forms and complete wrappers
Your Job Write down package # Weigh package and candies, all together, in grams and ounces Write down weights on form Optional: Open package, count total # candies Count # of each color Write down Eat candies Turn in form and empty complete wrappers for weighing
So who cares? Dept. of Commerce National Institutes of Standards & Technology NIST Handbook 133 Fair Packaging and Labeling Act
NIST Fines Don’t get caught It’s embarassing You’ll look dumb
How Many Servings? 267.9g /45g = 5.95 servings 264.8g /36g = 7.35 servings
Not for Retail Sale Why Not? Ingredients Nutritional information Peanut/allergy information Need room for cute pics Process variability?
Sampling Plans for Category A
Package Weight “Not Labeled for Individual Retail Sale” If individual is 18g MAV is 10% = 1.8g Nothing can be below 18g – 1.8g = 16.2g
Too Much Variability 10.9% of sample below 16.2g! Avg= 17.57, stdev 1.42
Suppose they wanted to Stated weight = 18g, MAV = 16.2g Suppose want 99.7% chance nothing below MAV Set the average to be 3σ above MAV σ = 1.42g, so set Avg = *1.42 = You pay for 18g, they give you 20.46g! 13.7% Free! They have to give away 1/7 th of the candy! Clearly, they aren’t going to do this!
Summary Many reasons M&M’s “Not for Individual Sale” Process variability seems to be an important one, if not the major one Process variability is a very important consideration for companies. BTW, one bag was 223.6g < 264.8