1. 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 Make Candy PackagePut in big bags Make Candy Mix Mix % Candy irregularity Wrong wt.

5. 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?

6. 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

7. 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

8. 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

9. Grams or Ounces?

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

11. Plain Candy Weights  Avg 0.858, StDev 0.035, C.V. 0.0413

12. Mini Candy Weights  Avg 0.288, StDev 0.020, C.V. 0.070

13. Peanut Color Mix website  Brown 17.7%20%  Yellow 8.2%20%  Red 9.5%20%  Blue15.4%20%  Orange26.4%10%  Green22.7%10%

14. Classwebsite  Brown12.1%30%  Yellow14.7%20%  Red11.4%20%  Blue19.5%10%  Orange21.2%10%  Green21.2%10% Plain Color Mix

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

16. NIST Fines  Don’t get caught  It’s embarassing  You’ll look dumb

17. How Many Servings? 267.9g /45g = 5.95 servings 264.8g /36g = 7.35 servings

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

19. Acceptable?

20. Sampling Plans for Category A

21. 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

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

23. 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 = 16.2 + 3*1.42 = 20.46 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!

24. 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