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Operations Management Dr. Ron Lembke

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1 Operations Management Dr. Ron Lembke
Candy Capability Operations Management Dr. Ron Lembke

2 Tolerance Limits for food?
Underfilling who would notice? Overfilling – would anyone care?

3 Packaged Goods What are the Tolerance Levels?
What we have to do to measure capability? What are the sources of variability?

4 Production Process Mix % Wrong wt. Wrong wt. Candy irregularity
Make Candy Make Candy Make Candy Mix Package Put in big bags Make Candy Mix % Wrong wt. Wrong wt. Make Candy Make Candy Candy irregularity

5 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

6 Candy colors Write Name on form Write weight on form
Write Package # on form Count # of each color and write on form Count total # of candies and write on form (Advanced only): Eat candies Turn in forms and complete wrappers

7 Your Job Write down package # Optional:
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

8 Grams or Ounces?

9 Peanut Candy Weights Avg. 2.18, stdv 0.242, c.v. = 0.111

10 Plain Candy Weights Avg 0.858, StDev 0.035, C.V

11 Mini Candy Weights Avg 0.288, StDev 0.020, C.V

12 Peanut Color Mix website Brown 17.7% 20% Yellow 8.2% 20% Red 9.5% 20%
Blue 15.4% 20% Orange 26.4% 10% Green 22.7% 10%

13 Plain Color Mix Class website Brown 12.1% 30% Yellow 14.7% 20%
Red 11.4% 20% Blue 19.5% 10% Orange 21.2% 10% Green 21.2% 10%

14 So who cares? Dept. of Commerce
National Institutes of Standards & Technology NIST Handbook 133 Fair Packaging and Labeling Act

15 NIST Fines Don’t get caught It’s embarassing You’ll look dumb

16 How Many Servings? 264.8g /36g = 7.35 servings

17 Not for Retail Sale Why Not? Ingredients Nutritional information
Peanut/allergy information Need room for cute pics Process variability?

18 Acceptable?

19 Sampling Plans for Category A

20 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

21 Too Much Variability 10.9% of sample below 16.2g! Avg= 17.57, stdev 1.42

22 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 = 20.46 You pay for 18g, they give you 20.46g! 13.7% Free! They have to give away 1/7th of the candy! Clearly, they aren’t going to do this!

23 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


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