OMIS 430 Test 3

* The method for evaluating location alternatives which uses their total cost curves is:
a. cost-volume analysis
b. transportation model analysis
c. factor rating analysis
d. linear regression analysis
e. MODI analysis
A. cost-volume analysis
* A manufacturing firm is considering two locations for a plant to produce a new product. The two locations have fixed and variable costs as follows:

Atlanta; FC= $80,000/yr; VC=$20/unit
Phoenix; FC=$140,000/yr; VC=$16/unit

1. If the annual demand will be 20,000 units, what would be the cost advantage of the better location?
a. $20,000
b. $460,000
c. $480,000
d. $80,000
e. $60,000

2. If annual demand is estimated to be 20,000 units, which location should the company select? (Refer to #1)
a. Atlanta
b.. Phoenix
c. either Atlanta or Phoenix
d. reject both Atlanta and Phoenix
e. build at both locations

1. a. $20,000
2. b. Phoenix
* Facilities, personnel and operations that are located around the world is called:
a. non-domestic
b. diversified operations
c. globalization
d. worldwide presence
e. virtual organization
C. globalization
* Location options don’t usually include:
a. expansion
b. a contract
c. adding new facilities
d. moving
e. doing nothing
B. a contract
* If the selection criterion is to be the greatest composite score, management should choose: (Refer to #5)
a. location A
b. location B
c. location C
d. either B or C
e. to reject all locations
b. location B
* Software systems known as GIS help in location analysis. The initials GIS stand for ..
a. Graphic Interface Systems
b. Global Integrated Software
c. Graded Information Systems
d. Geo Intensive Software
e. Geographical Information System
e. Geographical Information System
* What would be the total annual costs at the point of indifference? (Refer to #1)
a. $300,000
b. $240,000
c. $380,000
d. $220,000
e. $760,000
c. $380,000
* A location analysis has been narrowed down to three locations. The critical factors, their weights, and the ratings for each location are shown below:
FACTOR — WEIGHT — LOCATION
labor cost — .4 — A70, B80, C90
transport — .2 — A80, B80, C60
mkt access — .2 — A90, B70, C60
raw material access — .1 –A50, B70, C90
utility cost — .1 — A80, B90, C70

If the selection criteria is to be the greatest composite score exceeding 80, management should choose:
a. location A
b. location B
c. location C
d. either B or C
e. to reject all locations

e. to reject all locations
* A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is:
a. Pareto analysis
b. benchmarking
c. brainstorming
d. a control chart
e. a check sheet
c. brainstorming
* Which isn’t a cost of quality?
a. Prevention cost
b. External failure
c. Extended Service Contracts
d. Internal failure
e. Appraisal costs
c. Extended Service Contracts
* ISO 9000 standards do not have a requirement for:
a. resource
b. remedial
c. systems
d. training
e. management
d. training
* Asking questions about the current process in the hope that it will lead to important insights about why the current process isn’t working as well as it could is called:
a. the “5W2H approach”
b. using quality circles
c. benchmarking
d. PDCA cycle
e. none of the above
a. the “5W2H approach”
* Quality planning and administration, quality training, and quality control procedures are examples of:
a. internal failure costs
b. external failure costs
c. appraisal costs
d. prevention costs
e. replacement costs
d. prevention costs
* A tool that is not used for quality is:
a. Flowchart
b. Histogram
c. Parato Analysis
d. Redesign
e. Check sheets
d. Redesign
* A quality circle is:
a. responsible for quality
b. total quality control
c. an inspection stamp found on meat
d. a voluntary group of employees
e. none of the above
d. a voluntary group of employees
* Management behaviors supporting an organizational culture that encourages continuous improvement include which of the following?
(I) develop a vision statement for the organization
(II) develop a reward system that promotes the philosophy
(III) institute continuous training programs
(IV) make decisions that adhere to the philosophy

a. I, II, and IV
b. I, II, III, and IV
c. I and III
d. II, III, and IV
e. II and IV

b. I, II, III, and IV
* _______ variation is a variation whose cause can be identified.
a. Assignable
b. Controllable
c. Random
d. Statistical
e. Theoretical
a. Assignable
* A point which is outside of the lower control limit on an R-chart:
a. is an indication that no cause of variation is present
b. should be ignored because it signifies better than average quality
c. should be investigated because an assignable cause of variation might be present
d. should be ignored unless another point is outside that limit
e. is impossible since the lower limit is always zero
c. should be investigated because an assignable cause of variation might be present
* A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a standard deviation of 20 hours. On three recent production batches, he tested service life on random samples of four headlamps, with these results:

SAMPLE — SERVICE LIFE (HRS)
1 — 495 — 500 — 505 — 500
2 — 525 — 515 — 505 — 515
3 — 470 — 480 — 460 — 470

1. What is the mean of the sampling distribution of sample means for whenever service life is in control?
a. 250 hours
b. 470 hours
c. 495 hours
d. 500 hours
e. 515 hours

2. What is the standard deviation of the sampling distribution of sample means for whenever service life is in control? (Refer to #3)
a. 5 hours
b. 6.67 hours
c. 10 hours
d. 11.55 hours
e. 20 hours

1. d. 500 hours
2. c. 10 hours
* Which of the following relationships must always be INCORRECT?
a. Tolerances > process variability > control limits
b. Process variability > tolerances > control limits
c. Tolerances > control limits > process variability
d. Process variability > control limits > tolerances
e. Process variability
c. Tolerances > control limits > process variability
*A Quality Analyst wants to construct a control chart for determining whether four machines, all producing the same product, are under control with regard to a particular quality attribute. Accordingly, she inspected 1,000 units of output from each machine in random samples, with the following results:
MACHINE — TOTAL DEFECTS
1 — 23
2 — 15
3 — 29
4 — 13

1. What are the control chart upper and lower control limits for an alpha risk of .05?
a. .0272 and .0128
b. .0287 and .0113
c. .029 and .013
d. .0303 and .0097
e. .0332 and .0068

2. What is the sample proportion of defectives for machine #1?
a. .023
b. .02
c. .0115
d. .0058
e. .005

1. b. .0287 and .0113
2. a. .023
* A Quality Analyst wants to construct a control chart for determining whether three machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled four units of output from each machine, with the following results:
MACHINE — MEASUREMENTS
1 — 17, 15, 15, 17
2 — 16, 25, 18, 25
3 — 23, 24, 23, 22

For upper and lower control limits of 23.29 and 16.71, which machine(s), if any, appear(s) to have an out-of-control process mean?
a. machine #1
b. machine #2
c. machine #3
d. all of the machines
e. none of the machines

a. machine #1
* A time-ordered plot of representative sample statistics is call a:
a. Gantt chart
b. SIMO-chart
c. Control Chart
d. Up-Down Matrix
e. Standard deviation table
c. Control Chart
* The Chair of the Operations Management Department at Quality University wants to construct a p-chart for determining whether the four faculty members teaching the basic P/OM course are under control with regard to the number of students who fail the course. Accordingly, he sampled 100 final grades from last year for each instructor, with the following results:

INSTRUCTOR — # OF FAILURES
A — 13
B — 0
C — 11
D — 16

1. What is the sample proportion of failures (p) for Prof.D?
a. 0
b. .04
c. .11
d. .13
e. .16

e. .16
The 4 dimensions of quality that are sometimes used to determine fitness for use of a product are
performance
special features
conformance
reliability
A tool used to organize data into logical categories is called

a. affinity diagram
b. check list
c. control chart
d. flow chart
e. relationship diagram

a. affinity diagram
Which ISN’T a cost of quality?
a. prevention cost
b. external failure
c. extended service contracts
d. internal failure
e. appraisal cost
c. extended service contracts
The Deming Prize was established by the

a. American Stat Institure
b. Japanese
c. NA Free Trade Assoc
d. American Quality Society
e. WTO

b. Japanese
Lost production time, scrap, and rework are examples of
a. internal failure costs
b. external failure costs
c. appraisal costs
d. prevention costs
e. replacement costs
b. external failure costs
Costs of inspectors, testing, test equipment, and labs are examples of

a. internal failure costs
b. external failure costs
c. appraisal costs
d. prevention costs
e. replacement costs

c. appraisal costs
Loss of business, liability, productivity, and costs are consequences of
a. labor unions
b. globalzation
c. poor quality
d. robotics
e. micro-factories
c. poor quality
Quality planning and admin, quality training, and qual control procedure are examples of

a. internal failure costs
b. external failure costs
c. appraisal costs
d. prevention costs
e. replacement costsntrol procedure are examples of

d. prevention costs
The purpose of the Malcolm Baldridge National Qual Award is to
a. stimulate efforts to improve quality
b. recognize quality achievements of US Co.
c. publicize succcessful quality programs
d. all of the above
e. distribute grant money
d. all of the above
Fixing a problem will often cost money; to minimize these costs it is best to find and fix the problem

a. just before shipping to the customer
b. immediately after we complete the last operation
c. in the design phase
d. just before beginning the first production operation
e. regardless of when you fix, cost is the same

c. in the design phase
Deciding how much to invest in the prevention of defects can be analyzed using
a. EVPI
b. NPV
c. Weighted factor analysis
d. return on quality
e. breakeven analysis
d. return on quality
The Baldridge Award is based on 7 categories. Which is NOT one of these?
a. relative profitability
b. strategic planning
c. HR focus
d. info and analysis
e. leadership
a. relative profitability
ISO 9000 standards do not have a requirement for
a. resource
b. remedial
c. systems
d. training
e. mgmt
d. training
A quality circle is
a. responsible for quality
b. total quality control
c. an inspection stamp found on meat
d. a voluntary group of employees
e. none
d. a voluntary group of employees
ISO 9000 currently requires ___ of a certified organizations.

a. quarterly reporting
b. product diversity
c. annual audits
d. a minimum of 4 supervisory levels
e. continuous improvement

e. continuous improvement
The quality control improvement tool which distinguishes between the “important few” and the “trivial many” is ___

a. brainstorming
b. check sheets
c. Pareto analysis
d. cause and effect diagrams
e. fail-safe methods

d. cause and effect diagrams
TQM stands for
a. Taguchie Quality Methods
b. Tactical Quality Measurements
c. The Quality Matrix
d. Total Quality Mgmt
e. Total Quality Measurement
d. Total Quality Mgmt
The Quality Control improvement tool that resembles a ‘fishbone’ is ___
a. brainstorming
b. check sheets
c. Pareto analysis
d. cause and effect diagrams
e. fail safe methods
d. cause and effect diagrams
Which of the following is an element of TQM?
a. continual improvement
b. competitive benchmarking
c. operations manager empowerment
d. team approach
e. all of the above
e. all of the above
Mgmt behaviors supporting an org culture that encourages continuous improvement inlcude which of the following?

I develop a vision statement for the org
II develop a reward system that promotes the philosophy
III institute continuous training programs
IV make decisions that adhere to the philosphy

I, II, III, and IV
The tool that is useful in documenting the current process is
a. a control chart
b. Pareto chart
c. check sheet
d. flow chart
e. simo chart
d. flow chart
The tool that is useful in the collection and organization of data is
a. a control chart
b. Pareto chart
c. check sheet
d. flow chart
e. simo chart
c. check sheet
A quality improvement technique that involves the sharing of thoughts and ideas in a way that encourages unrestrained collective thinking is

a. Pareto analysis
b. benchmarking
c. brainstorming
d. control chart
e. check sheet

c. brainstorming
The “5W2H approach” involves
a. measuring width and height
b. using 7 ppl
c. using 2 ppl
d. using 9 ppl
e. asking questions
e. asking questions
Asking questions about the current process in the hope that it will lead to important insights about why the current process isn’t working as well as it could is called

a. the “5W2H approach”
b. using quality circles
c. brainstorming
d. PDCA cycle
e. none

a. the “5W2H approach”
Focusing attention on the most important problem areas is referred to as
a. quality circles
b. quality assurance
c. brainstorming
d. Pareto analysis
e. cause and effect analysis
d. Pareto analysis
A chart showing the number of occurences by category would be used in
a. Pareto analysis
b. interviewing
c. cause and effect diagrams
d. benchmarking
e. none
a. Pareto analysis
Cause and effect diagrams are sometimes called
a. Pareto diagrams
b. fishbone (Ishikawa) diagrams
c. run charts
d. control charts
e. none
b. fishbone (Ishikawa) diagrams
The process of identifying other org that are best at some facet of your ops., and then modeling your org. after them is called
a. continuous improvement
b. employee empowerment
c. competitive benchmarking
d. copycatting
e. industrial espionage
c. competitive benchmarking
Giving workers responsibility for quality improvements and authority to make changes is known as
a. continuous improvement
b. passing the buck
c. benchmarking
d. employee empowerment
e. employee involvement
d. employee empowerment
The typical difference between “quality circles” and “continuous improvement teams” is
a. quality circles work on product design only
b. continuous improvement teams work on product and process design
c. continuous improvement teams use only engineers while quality circles use just the workers doing the work
d. the amount of employee empowerment
e. there is no difference
d. the amount of employee empowerment
Which of the following is NOT a goal of process improvement?

a. increasing customer satisfaction
b. reducing waste
c. achieveing higher quality
d. identifying the cause of the problem

d. identifying the cause of the problem
Managers have obligations to a wide variety of stakeholders such as shareholders, employees, and customers. When considering outsourcing production to offhshore suppliers, managers have to weigh ___

(I) cost benefits that might make shareholders wealthier
(II) quality issues that might make firms less productive and/or products riskier
(III) the investments already tied up in relationships with existing suppliers

I, II, and III
Focusing a supple chain on ___ is a modern way of ensuring high quality inputs and a ready supply of process-improvement ideas

a. lowest cost-per unit sourced
b. close, collaborative ties with suppliers
c. suppliers that emphasized contunous-flow production
d. ISO 14000 customers
e. partners pursuing similar strategies

b. close, collaborative ties with suppliers
Which of the following quality control sample stats indicates a quality characteristic that is an attribute?
a. mean
b. variance
c. stand dev
d. range
e. proportion
e. proportion
A time-ordered plot of representative sample stats is called a
a. Gantt chart
b. SIMO chart
c. control chart
d. uo-down matrix
e. stand dev table
c. control chart
A control chart used to monitor the process mean is the
a. p-chart
c. x-bar chart
A control chart used to monitor the fraction defectives generated by a process is the
a. p-chart
b. r-chart
c. x-bar chart
d. c-chart
a. p-chart
A p-chart would be used to monitor
a. average shrinkage
b. dispersion in simple data
c. the fraction defective
d. number of defects per unit
e. range of vales
c. the fraction defective
A c-chart is used for
a. means
b. ranges
c. percent defective
d. fraction defective per unit
e. number of defects per unit
e. number of defects per unit
A control chart used to monitor the number of defects/unit is the
a. p-chart
b. R-chart
c. x-bar chart
d. c-chart
e. Gantt chart
d. c-chart
A point which is outside of the lower control limit on an R-chart
a. is an indication that no cause of variation is present
b.should be ignored because is signifies better than average quality
c. should be investigated bc an assignable cause of variation might be present
d. should be ignored
e. is impossible
c. should be investigated bc an assignable cause of variation might be present
If a process is performing as it should, its still possible to obtain observations which are outside of which limits?
(I) tolerances
(II) control limits
(III) process variability

a. I
b. II
c. I & II
d II & III
e. I, II, III

c. I & II
Which of the following relationships must always be INCORRECT?
a. tolerances > process variability > control limits
b. process variability > tolerances > control limits
c. tolerances > control limits > process variability
c. tolerances > control limits > process variability
Which of the following is NOT a step in the quality control process?
a. define what is to be controlled
b. compare measurements to a standard
c. eliminate each of the defects as they are identified
d. take corrective action
e. evaluate corrective action
c. eliminate each of the defects as they are identified
The probability of concluding that assignable variation exists when only random variation is present is

(I) the probability of type I error
(II) known as the alpha risk
(III) highly unlikely
(IV) the sum of probabilities in the 2 tails of the norm distrubution

a. I & II
b. I & IV
c, II & III
d. I,II, IV

d. I,II, IV
___ variation is a varitation whose cause cannot be identified
a. assignable
b. controllable
c. random
d. statistical
e. theoretical
a. assignable
A plot below the LCL on the range chart
(I) should be ignored since lower variation is desireable
(II) may be an indication that process variation has decreased
(III) should be investigated for assignable cause

a. I & II
b. I & III
c. II & III
d. I, II, IV

c. II & III
A shift in the process mean for a measured characteristic would most likely be detected by a
a. p-chart
b. x-bar chart
c. c-chart
d. R-chart
b. x-bar chart
The range chart (r-chart) is most likely to detect a change in
a. proprotion
b. mean
c. number defective
d. variability
e. sample size
d. variability
The optimum level of inspection is where the
a. cost of inspection is minimum
b. cost of passing defectives is minimum
c. total cost of inspection and defectives is maximum
d. total cost of inspection and defectives is minimum
e. difference between inspection and defectives cost is minimum
d. total cost of inspection and defectives is minimum
The purpose of control charts is to
a. estimate the proportion of output that is acceptable
b. weed out defective items
c. determine if the output is within tolerances/specifications
d. distinguish btw random var and assignable var in the process
e. provide meaningful work for quality inspections
d. distinguish btw random var and assignable var in the process
The process capability index (Cp) may mislead if
(I) the process is not stable
(II) the process output is not normally distributed
(III) the process is not centered

a. I & II
b. I & III
c. II & III
d. II only
e. I, II, & III

e. I, II, & III
A time-ordered plot of sample statistics is called a(n) ___ chart
a. statistical
b. inspection
c. control
d. SIMO
e. Limit
c. control
Observations; # of defects
1; 10
2; 18
3; 13
4; 15
5; 9
6; 12

1. the number of runs up and down for the data is __
2. The number of runs with respect to the sample median is __

1. 5
2. 3
The following data occurs chronologically from left to right
15.2 19.7 16.0 11.1 14.8 14.5

1. The numbr of runs with respect to the sample median is __
2. The # of runs up & down is __

1. 2
2. 4
A design engineer wants to construct a sample mean chart for controlling the service life of a halogen headlamp his company produces. He knows from numerous previous samples that this service life is normally distributed with a mean of 500 hours and a stand dev of 20 hours. On three recent production batches, he tested service life on random samples of 4 headlamps, with these results;

sample 1: 495 / 500 / 505 / 500 (service life – hrs)
sample 2: 525 / 515 / 505 / 515
sample 3: 470 / 480 / 460 / 470

1.. What is the sample mean service life for sample 2?
2. What is the mean of the sampling distribution of sample means when service life is in control?
3. What is the stand dev of the sampling distribution of sample means for when service life is in control?
4. if he uses UCL and LCL of 520 and 480 hrs, what is his alpha risk of concluding service life is out of control when it is actually in control?
5. if he uses UCL and LCL of 520 and 480 hrs, on what samples if any does service like appear out of control?

1. 515 hrs
2. 500 hrs
3. 10 hrs
4. 0.0456
5. sample 3
A Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that whenever this process in control, pkg weight normally distributed with mean = 20 oz and a stand dev = 2 oz. Each day last week, he randomly selected 4 pkgs. and weighed each.

Monday: 23 / 22 / 23 / 24
Tuesday: 23 / 21 / 19 / 21
Wednesday: 20 / 19 / 20 / 19
Thursday: 18 / 19 / 20 / 19
Friday: 18 / 20 / 22 / 20

1. What is the sample Mean pkg weight for Thursday?
2. What is the mean of the sampling distribution of sample means when this process is under control?
3. What is the stand dev of the sampling distribution of sample means for when this process is in control?
4. if he uses UCL and LCL of 22 and 18 hrs, what is his alpha risk of concluding this process is out of control when it is actually in control?
4. if he uses UCL and LCL of 22 and 18 hrs, on what days if any does this process appear to be out of control?

1. 20.6
2. 20 oz
3. 1 oz
4.0.0456
5. Monday
A Quality Analyst wants to construct a control chart for determining whether 3 machines, all producing the same product, are under control with regard to a particular quality variable. Accordingly, he sampled 4 units of output from each machine, with the following results:
machine #1: 17 / 15 / 15 / 17
machine #2: 16 / 25 / 18 / 25
machine #3: 23 / 24 / 23 / 22

1. what is the sample mean for machine #1?
2. what is teh estimate of the process mean for whenever it is under control?
3. What is the estimate of the sample avg range based upon this limited sample?.
4. What are the x-bar chart 3 sigma upper and lower CL?
5. For UCL and LCL of 23.29 and 16.71, which machines if any appear to have been out of control?

1. 16
2. 20
3. 4.33
4. 23.16 and 16.84
5. machine #1
The Chair of the Ops Mgmt Dept at Quality U wants to construct a p-chart for determining whether the 4 faculty teaching the basic P/OM course are under control with regard to the # of students who fail the course. He sampled 100 final grades from last year.
Prof A: 13 failures
Prof B: 0 failures
Prof C: 11 failures
Prof D; 16 failures

1. What is the sample proportion of failures (p) for Prof D?
2. What is the estimate of the mean proportion of failure for these instructors?
3. What is the estimate of the stand dev of the sampling distrib for an instructor’s sample proportion of failures?
4. What are the .95 (5% risk of type I error) UCL and LCL for the p-chart?
5. Using .95 CL, which instructors is any should he conclude are out of control?

1. 16
2. .10
3. .03
4. 0.1588 & 0.0412
5. both Prof B & Prof D
A Quality Analyst wants to construct a control chart for determining whether 4 machines, all producing the same prod., are under control with regard to a particular quality attribute. She inspected 1,000 units of output from each machine
machine #1: 23 defects
machine#2: 15 defects
machine #3: 29 defects
machine #4: 13 defects

1. what is the sample proportion of defects for machine #1?
2. What is the estimate of the process proportion of defectives for whenever it is under control?
3. What is the estimate of the stand dev of the sampling distrib of sample proportion of defectives for whenever it is under control?
4. What are the UCL and LCL for alpha risk .05?
5. For UCL and LCL .026 and .014, what machine if any appears to be out of control?

1. .023
2. .02
3. .0044
4. .0287 and .0113
5. machines #3 and #4
Studies on a bottle-filling machine indictaes is bottles to a mean of 16 oz with a stand dev of 0.10 oz. What is the process specification, assuming Cp index of 1?
a. 0.10 oz
b. 0.20 oz
c. 0.30 oz
d. 16.0 oz +/- 0.30 oz
e. none
d. 16.0 oz +/- 0.30 oz
Studies on a machine that molds plastic water pipe indicate that when it is injecting 1″ diameter pipe, the process stand dev is 0.05″. The 1″ pipe has a spec of 1″ +/- 0.10″. WHat is the process capability index (Cp) if the long tun process mean is 1″?
a. 0.67
b. 0.50
c. 1
d. 2
e none
a. 0.67
The specification limit for a product is 8cm and 10cm. A process that produces the prod has a mean of 9.5cm and a stand dev of 0.2cm. What is the process capability, Cpk?
a. 3.33
b. 1.67
c 0.83
d. 2.5
e. none
c 0.83
The specifications for a prod are 6mm +/- 0.1mm. Mean = 6.05 with stand dev = 0.01mm. What is Cpk?
a. 3.33
b. 1.67
c 0.83
d. 2.5
e. none
b. 1.67