You have been offered a position as General Manager of a television manufacturing facility by XYZ Corporation. You have a choice of Plant A or Plant B. At the present time both plants are satisfying their demand for a particular TV (Model FX32) by providing 3200 sets per day on the average.
-However, Plant A has a standard deviationof 50 Model FX32’s per day while Plant B has a standard deviation of 150 Model FX32’s per day.
-Which of these plants would you prefer to manage?
As a rule of thumb, the smaller the standard deviation, the less errors occur, and the more predictable the results. The higher the standard deviation, the more unpredictable the results.
The solution examines plants satisfying demand. The expert determines which of the plants they would prefer to manage.