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Process Capability Analysis

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You are the process improvement manager and have developed a new machine to cut insoles for the company's top-of-the-line running shoes. You are excited because the company's goal is no more than 3.4 defects per million (very close to zero defects) and this machine may be the innovation you need. The insoles cannot be more than +/-.001 of an inch from the required thickness of .250".

You want to know if you should replace the existing machines, which has a Cpk of 1.0. You decide to determine the Cpk for the new machines and make a decision on that basis.

Note: the mean of the new process is .250 and the standard deviation of the new process is .00005 inches.

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Why is it best for large organizations like Dish to use both PEST and Porter's 5 Forces analysis in helping its leaders to understand their particular external environment? Make sure you demonstrate understanding of both analytical processes in your discussion and give clear, Dish-related examples to support your arguments.
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