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  1. CHAPTER 6: MANAGING QUALITY
  2.  
  3. TRUE/FALSE
  4. 1.      Managers at Arnold Palmer Hospital take quality so seriously that the hospital typically is a national leader in several quality areas—so that continuous improvement is no longer necessary.
  5. False (Global company profile, moderate)
  6. 2.      An improvement in quality must necessarily increase costs.
  7. False (Quality and strategy, easy)
  8. 3.      For most, if not all organizations, quality is a tactical rather than a strategic issue.
  9. False (Quality and strategy, moderate)
  10. 4.      The definition of quality adopted by The American Society for Quality is a customer-oriented definition.
  11. True (Defining quality, easy)
  12. 5.      Conforming to standards is the focus of the product-based definition of quality.
  13. False (Defining quality, moderate)
  14. 6.      Internal failure costs are associated with scrap, rework, and downtime.
  15. True (Defining quality, easy)
  16. 7.      Philip Crosby is credited with both of these quality catch-phrases: "quality is free" and "zero defects."
  17. True (Defining quality, easy)
  18. 8.      Deming's writings on quality tend to focus on the customer and on fitness for use, unlike Juran's work that is oriented toward meeting specifications.
  19. False (defining quality, moderate)
  20. 9.      Improved quality can increase profitability via flexible pricing.
  21. True (Defining quality, moderate)
  22. 10.     ISO 9000 has evolved from a set of quality assurance standards toward a quality management system.
  23. True (International quality standards, moderate)
  24. 11.     Quality is mostly the business of the quality control staff, not ordinary employees.
  25. False (Total quality management, moderate)
  26. 12.     TQM is important because quality influences all of the ten decisions made by operations managers.
  27. True (Total quality management, moderate)
  28. 13.     The phrase Six Sigma has two meanings. One is statistical, referring to an extremely high process capability; the other is a comprehensive system for achieving and sustaining business success.
  29. True (Quality and strategy, moderate)
  30. 14.     Continuous improvement is based on the philosophy that any aspect of an organization can be improved.
  31. True (Total quality management, moderate)
  32. 15.     Kaizen is similar to TQM in that both are focused on continuous improvement.
  33. True (Total quality management, moderate)
  34. 16.     The Japanese use the term "poka-yoke" to refer to continuous improvement.
  35. False (Total quality management, moderate) {AACSB: Multiculture and Diversity}
  36. 17.     Quality circles empower employees to improve productivity by finding solutions to work-related problems in their work area.
  37. True (Total quality management, moderate) {AACSB: Communication}
  38. 18.     Benchmarking requires the comparison of your firm to other organizations; it is not appropriate to benchmark by comparing one of your divisions to another of your divisions.
  39. False (Total quality management, moderate)
  40. 19.     Line employees need the knowledge of TQM tools.
  41. True (Total quality management, easy)
  42. 20.     One of the ways that Just-In-Time (or JIT) influences quality is that by reducing inventory, bad quality is exposed.
  43. True (Total quality management, moderate)
  44. 21.     The quality loss function indicates that costs related to poor quality are low as long as the product is within acceptable specification limits.
  45. False (Total quality management, moderate)
  46. 22.     Pareto charts are a graphical way of identifying the few critical items from the many less important ones.
  47. True (Tools of TQM, moderate)
  48. 23.     A cause-and-effect diagram helps identify the source of a problem.
  49. True (Tools of TQM, moderate)
  50. 24.     Source inspection is inferior to inspection before costly operations.
  51. False (The role of inspection, moderate)
  52. 25.     Of the several determinants of service quality, access is the one that relates to keeping customers informed in language they can understand.
  53. False (TQM in services, moderate)
  54. 26.     High-quality products and services are the most profitable.
  55. True (Defining quality, easy)
  56. MULTIPLE CHOICE
  57. 27.     Which of the following statements regarding Arnold Palmer Hospital is false?
  58. 1.      a.      The hospital uses a wide range of quality management techniques.
  59. 2.      b.      The culture of quality at the hospital includes employees at all levels.
  60. 3.      c.      The hospital scores very highly in national studies of patient satisfaction.
  61. 4.      d.      The hospital's high quality is measured by low readmission rates, not patient satisfaction.
  62. 5.      e.      The design of patient rooms, even wall colors, reflects the hospital's culture of quality.
  63.  
  64. d (Global company profile, moderate)
  65. 28.     Arnold Palmer Hospital uses which of the following quality management techniques?
  66. 1.      a.      Pareto charts
  67. 2.       b.     flow charts
  68. 3.      c.      benchmarking
  69. 4.      d.      Just-in-Time
  70. 5.      e.      The hospital uses all of the above techniques.
  71.  
  72. e (Global company profile, easy)
  73. 29.     Which of the following statements best describes the relationship between quality management and product strategy?
  74. 1.      a.      Product strategy is set by top management; quality management is an independent activity.
  75. 2.      b.      Quality management is important to the low-cost product strategy, but not to the response or differentiation strategies.
  76. 3.      c.      High quality is important to all three strategies, but it is not a critical success factor.  
  77. 4.      d.      Managing quality helps build successful product strategies.
  78. 5.      e.      Companies with the highest measures of quality were no more productive than other firms.
  79.  
  80. d (Defining quality, moderate)
  81. 30.     "Quality is defined by the customer" is
  82. 1.      a.      an unrealistic definition of quality
  83. 2.      b.      a user-based definition of quality
  84. 3.      c.      a manufacturing-based definition of quality
  85. 4.      d.      a product-based definition of quality
  86. 5.      e.      the definition proposed by the American Society for Quality
  87.  
  88. b (Defining quality, moderate)
  89. 31.     "Making it right the first time" is
  90. 1.      a.      an unrealistic definition of quality
  91. 2.      b.      a user-based definition of quality
  92. 3.      c.      a manufacturing-based definition of quality
  93. 4.      d.      a product-based definition of quality
  94. 5.      e.      the definition proposed by the American Society for Quality
  95.  
  96. c (Defining quality, moderate)
  97. 32. Three broad categories of definitions of quality are
  98. 1.      a.      product quality, service quality, and organizational quality
  99. 2.      b.      user-based, manufacturing-based, and product-based
  100. 3.      c.      internal, external, and prevention
  101. 4.      d.      low-cost, response, and differentiation
  102. 5.      e.      Pareto, Shewhart, and Deming
  103.  
  104. b (Defining quality, easy)
  105. 33. According to the manufacturing-based definition of quality,
  106. 1.      a.      quality is the degree of excellence at an acceptable price and the control of variability at an acceptable cost
  107. 2.      b.      quality depends on how well the product fits patterns of consumer preferences
  108. 3.      c.      even though quality cannot be defined, you know what it is
  109. 4.      d.      quality is the degree to which a specific product conforms to standards
  110. 5.      e.      quality lies in the eyes of the beholder
  111.  
  112. d (Defining quality, moderate)
  113. 34. The role of quality in limiting a firm's product liability is illustrated by
  114. 1.      a.      ensuring that contaminated products such as impure foods do not reach customers
  115. 2.      b.      ensuring that products meet standards such as those of the Consumer Product Safety Act
  116. 3.      c.      designing safe products to limit possible harm to consumers
  117. 4.      d.      using processes that make products as safe or as durable as their design specifications call for
  118. 5.      e.      All of the above are valid.
  119.  
  120. e (Defining quality, easy) {AACSB: Ethical Reasoning}
  121. 35. Which of the following is not one of the major categories of costs associated with quality?
  122. 1.      a.      prevention costs
  123. 2.       b.     appraisal costs
  124. 3.      c.      internal failures
  125. 4.      d.      external failures
  126. 5.      e.      none of the above; they are all major categories of costs associated with quality
  127.  
  128. e (Defining quality, moderate)
  129. 36. All of the following costs are likely to decrease as a result of better quality except
  130. 1.      a.      customer dissatisfaction costs
  131. 2.       b.     inspection costs
  132. 3.       c.     scrap costs
  133. 4.      d.      warranty and service costs
  134. 5.       e.     maintenance costs
  135.  
  136. e (Defining quality, moderate)
  137. 37.     Which of the following statements is not true?
  138. 1.      a.      Self-promotion is not a substitute for quality products.
  139. 2.      b.      Inferior products harm a firm’s profitability and a nation’s balance of payments.
  140. 3.      c.      Product liability transfers from the manufacturer to the retailer once the retailer accepts delivery of the product.
  141. 4.      d. Quality—be it good or bad—will show up in perceptions about a firm’s new products, employment practices, and supplier relations.
  142. 5.      e.      Legislation such as the Consumer Product Safety Act sets and enforces product standards by banning products that do not reach those standards.
  143.  
  144. c (Defining quality, moderate)
  145. 38.     "Employees cannot produce goods that on average exceed the quality of what the process is capable of producing" expresses a basic element in the writings of
  146. 1.      a.      Vilfredo Pareto
  147. 2.      b.      Armand Feigenbaum
  148. 3.      c.      Joseph M. Juran
  149. 4.      d.      W. Edwards Deming
  150. 5.      e.      Philip B. Crosby
  151.  
  152. d (Defining quality, moderate)
  153. 39.     "Quality Is Free," meaning that the costs of poor quality have been understated, is the work of
  154. 1.      a.      W. Edwards Deming
  155. 2.      b.      Joseph M. Juran
  156. 3.      c.      Philip B. Crosby
  157. 4.      d.      Crosby, Stills, and Nash
  158. 5.      e.      Armand Feigenbaum
  159.  
  160. c (Defining quality, moderate)
  161. 40.     The philosophy of zero defects is
  162. 1.      a.      the result of Deming's research
  163. 2.       b.     unrealistic
  164. 3.      c.      prohibitively costly
  165. 4.      d.      an ultimate goal; in practice, 1 to 2% defects is acceptable
  166. 5.      e.      consistent with the commitment to continuous improvement
  167.  
  168. e (Total quality management, moderate)
  169. 41.     Based on his 14 Points, Deming is a strong proponent of
  170. 1.      a.      inspection at the end of the production process
  171. 2.      b.      an increase in numerical quotas to boost productivity
  172. 3.      c.      looking for the cheapest supplier
  173. 4.      d.      training and knowledge
  174. 5.      e.      all of the above
  175.  
  176. d (Total quality management, moderate)
  177. 42.     Stakeholders who are affected by the production and marketing of poor quality products include
  178. 1.      a. stockholders, employees, and customers
  179. 2.      b. suppliers and creditors, but not distributors
  180. 3.      c. only stockholders, creditors, and owners
  181. 4.      d. suppliers and distributors, but not customers
  182. 5.      e. only stockholders and organizational executives and managers
  183.  
  184. a (Defining quality, moderate) {AACSB: Ethical Reasoning}
  185. 43.     Regarding the quality of design, production, and distribution of products, an ethical requirement for management is to
  186. 1.      a. determine whether any of the organization's stakeholders are violated by poor quality products
  187. 2.      b. gain ISO 14000 certification for the organization
  188. 3.      c. obtain a product safety certificate from the Consumer Product Safety Commission
  189. 4.      d. have the organization's legal staff write disclaimers in the product instruction booklets
  190. 5.      e. compare the cost of product liability to the external failure cost
  191.  
  192. a (Defining quality, moderate) {AACSB: Ethical Reasoning}
  193. 44.     If 1 million passengers pass through the St. Louis Airport with checked baggage each month, a successful Six Sigma program for baggage handling would result in how many passengers with misplaced luggage?
  194. 1.      a. 3.4
  195. 2.      b. 6.0
  196. 3.      c. 34
  197. 4.      d. 2700
  198. 5.      e. 6 times the monthly standard deviation of passengers
  199.  
  200. a (Total quality management, moderate) {AACSB: Analytic Skills}
  201. 45.     Which of the following is true about ISO 14000 certification?
  202. 1.      a. It is not a prerequisite for ISO 9000 certification.
  203. 2.      b. It deals with environmental management.
  204. 3.      c. It offers a good systematic approach to pollution prevention.
  205. 4.      d. One of its core elements is life-cycle assessment.
  206. 5.      e. All of the above are true.
  207.  
  208. e (International quality standards, moderate)
  209. 46.     Suppose that a firm has historically been achieving “three-sigma” quality.  If the firm later changes its quality management practices such that begins to achieve “six-sigma” quality, which of the following phenomena will result?
  210. 1.      a. The average number of defects will be cut in half.
  211. 2.      b. The specification limits will be moved twice as far from the mean.
  212. 3.      c. The average number of defects will be cut by 99.9997%.
  213. 4.      d. The average number of defects will be cut by 99.87%.
  214. 5.      e. The average number of defects will be cut by 99.73%.
  215.  
  216. d (Total quality management, difficult) {AACSB: Analytic Skills}
  217. 47. To become ISO 9000 certified, organizations must
  218. 1.      a.      document quality procedures
  219. 2.      b.      have an onsite assessment
  220. 3.      c.      have an ongoing series of audits of their products or service
  221. 4.      d.      all of the above
  222. 5.      e.      none of the above
  223.  
  224. d (International quality standards, moderate)
  225. 48. Total quality management emphasizes
  226. 1.      a.      the responsibility of the quality control staff to identify and solve all quality-related problems
  227. 2.      b.      a commitment to quality that goes beyond internal company issues to suppliers and customers
  228. 3.      c.      a system where strong managers are the only decision makers
  229. 4.      d.      a process where mostly statisticians get involved
  230. 5.      e.      ISO 14000 certification
  231.  
  232. b (Total quality management, moderate)
  233. 49. A successful TQM program incorporates all of the following except
  234. 1.       a.     continuous improvement
  235. 2.      b.      employee involvement
  236. 3.      c.      benchmarking
  237. 4.      d.      centralized decision-making authority
  238. 5.      e.      none of the above; a successful TQM program incorporates all of the above
  239.  
  240. d (Total quality management, moderate)
  241. 50. "Kaizen" is a Japanese term meaning
  242. 1.      a.      a foolproof mechanism
  243. 2.      b.      just-in-time (JIT)
  244. 3.      c.      a fishbone diagram
  245. 4.      d.      setting standards
  246. 5.      e.      continuous improvement
  247.  
  248. e (Total quality management, easy) {AACSB: Multiculture and Diversity}
  249. 51. Which of the following statements regarding "Six Sigma" is true?
  250. 1.      a.      The term has two distinct meanings—one is statistical; the other is a comprehensive quality system.
  251. 2.      b.      Six Sigma means that about 94 percent of a firm's output is free of defects.
  252. 3.      c.      The Six Sigma program was developed by Toyota in the 1970's.
  253. 4.      d.      The Six Sigma program is for manufacturing firms, and is not applicable to services.
  254. 5.      e.      Six Sigma certification is granted by the International Standards Organization (ISO).
  255.  
  256. a (Total quality management, moderate)
  257. 52. Quality circles members are
  258. 1.      a.      paid according to their contribution to quality
  259. 2.      b.      external consultants designed to provide training in the use of quality tools
  260. 3.      c.      always machine operators
  261. 4.      d.      all trained to be facilitators
  262. 5.      e.      none of the above; all of the statements are false
  263.  
  264. e (Total quality management, moderate)
  265. 53.     Techniques for building employee empowerment include
  266. 1.      a. building communication networks that include employees
  267. 2.      b. developing open, supportive supervisors
  268. 3.      c. moving responsibility from both managers and staff to production employees
  269. 4.      d. building high-morale organizations
  270. 5.      e. All of the above are techniques for employee empowerment.
  271.  
  272. e (Total quality management, moderate)
  273. 54.     Building high-morale organizations and building communication networks that include employees are both elements of
  274. 1.      a. ISO 9000 certification
  275. 2.      b. Six Sigma certification
  276. 3.      c. employee empowerment
  277. 4.       d. Taguchi methods
  278. 5.      e. the tools of TQM
  279.  
  280. c (Total quality management, moderate) {AACSB: Communication}
  281. 55.     The process of identifying other organizations that are best at some facet of your operations and then modeling your organization after them is known as
  282. 1.      a. continuous improvement
  283. 2.      b. employee empowerment
  284. 3.      c. benchmarking
  285. 4.      d. copycatting
  286. 5.      e. patent infringement
  287.  
  288. c (Total quality management, moderate)
  289. 56.     ISO 9000 seeks standardization in terms of
  290. 1.      a. products
  291. 2.       b. production procedures
  292. 3.      c. suppliers' specifications
  293. 4.      d. procedures to manage quality
  294. 5.      e. all of the above
  295.  
  296. d (International quality standards, moderate)
  297. 57.     Costs of dissatisfaction, repair costs, and warranty costs are elements of cost in the
  298. 1.      a. Taguchi Loss Function
  299. 2.       b. Pareto chart
  300. 3.      c. ISO 9000 Quality Cost Calculator
  301. 4.      d. process chart
  302. 5.      e. none of the above
  303.  
  304. a (Total quality management, moderate)
  305. 58.     A quality loss function includes all of the following costs except
  306. 1.      a. the cost of scrap and repair
  307. 2.      b. the cost of customer dissatisfaction
  308. 3.      c. inspection, warranty, and service costs
  309. 4.       d. sales costs
  310. 5.      e. costs to society
  311.  
  312. d (Tools of TQM, moderate)
  313. 59.     Pareto charts are used to
  314. 1.      a. identify inspection points in a process
  315. 2.      b. outline production schedules
  316. 3.      c. organize errors, problems, or defects
  317. 4.      d. show material flow
  318. 5.      e. all of the above
  319.  
  320. c (Tools of TQM, moderate)
  321. 60.     The "four Ms" of cause-and-effect diagrams are
  322. 1.      a. material, machinery/equipment, manpower, and methods
  323. 2.      b. material, methods, men, and mental attitude
  324. 3.      c. named after four quality experts
  325. 4.      d. material, management, manpower, and motivation
  326. 5.      e. none of the above
  327.  
  328. a (Tools of TQM, moderate)
  329. 61.     Among the tools of TQM, the tool ordinarily used to aid in understanding the sequence of events through which a product travels is a
  330. 1.      a. Pareto chart
  331. 2.       b. process chart
  332. 3.       c. check sheet
  333. 4.       d. Taguchi map
  334. 5.       e. poka-yoke
  335.  
  336. b (Tools of TQM, moderate)
  337. 62.     The process improvement technique that sorts the "vital few" from the "trivial many" is
  338. 1.      a. Taguchi analysis
  339. 2.       b. Pareto analysis
  340. 3.      c. benchmarking
  341. 4.      d. Deming analysis
  342. 5.       e. Yamaguchi analysis
  343.  
  344. b (Tools of TQM, moderate)
  345. 63.     A production manager at a pottery factory has noticed that about 70 percent of defects result from impurities in raw materials, 15 percent result from human error, 10 percent from machine malfunctions, and 5 percent from a variety of other causes. This manager is most likely using
  346. 1.      a. a Pareto chart
  347. 2.      b. a scatter diagram
  348. 3.      c. a Taguchi loss function
  349. 4.      d. a cause and effect diagram
  350. 5.      e. a flow chart
  351.  
  352. a (Tools of TQM, easy)
  353. 64.     A customer service manager at a retail clothing store has collected numerous customer complaints from the forms they fill out on merchandise returns. To analyze trends or patterns in these returns, she has organized these complaints into a small number of categories. This is most closely related to the ____________ tool of TQM.  
  354. 1.      a. Taguchi loss function
  355. 2.      b. cause and effect diagram
  356. 3.      c. scatter diagram
  357. 4.      d. histogram
  358. 5.      e. process control chart
  359.  
  360. b (Tools of TQM, easy)
  361. 65.     A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of  
  362. 1.      a. internal benchmarking
  363. 2.      b. Six Sigma
  364. 3.      c. ISO 9000
  365. 4.       d. Taguchi concepts
  366. 5.      e. process control charts
  367.  
  368. d (Tools of TQM, moderate)
  369. 66.     A fishbone diagram is also known as a
  370. 1.      a. cause-and-effect diagram
  371. 2.      b. poka-yoke diagram
  372. 3.      c. Kaizen diagram
  373. 4.      d. Kanban diagram
  374. 5.      e. Taguchi diagram
  375.  
  376. a (Tools of TQM, easy)
  377. 67.     If a sample of parts is measured and the mean of the measurements is outside the control limits, the process is
  378. 1.      a. in control, but not capable of producing within the established control limits
  379. 2.      b. out of control and the process should be investigated for assignable variation
  380. 3.      c. within the established control limits with only natural causes of variation
  381. 4.      d. monitored closely to see if the next sample mean will also fall outside the control limits
  382. 5.      e. none of the above
  383.  
  384. b (Tools of TQM, moderate)
  385. 68.     A quality circle holds a brainstorming session and attempts to identify the factors responsible for flaws in a product. Which tool do you suggest they use to organize their findings?
  386. 1.      a. Ishikawa diagram
  387. 2.      b. Pareto chart
  388. 3.       c. process chart
  389. 4.       d. control charts
  390. 5.      e. activity chart
  391.  
  392. a (Tools of TQM, moderate) {AACSB: Communication}
  393. 69. When a sample measurement falls inside the control limits, it means that
  394. 1.      a.      each unit manufactured is good enough to sell
  395. 2.      b.      the process limits cannot be determined statistically
  396. 3.      c.      the process output exceeds the requirements
  397. 4.      d.      if there is no other pattern in the samples, the process is in control
  398. 5.      e.      the process output does not fulfill the requirements
  399.  
  400. d (Tools of TQM, moderate,)
  401. 70. Which of the following is false regarding control charts?
  402. 1.      a.      Values above the upper control limits always imply that the product’s quality is exceeding expectations.
  403. 2.      b.      Control charts are built so that new data can be quickly compared to past performance data.
  404. 3.      c.      Control charts graphically present data.
  405. 4.      d.      Control charts plot data over time.
  406. 5.      e.      None of the above is false.
  407.  
  408. a (Tools of TQM, moderate)
  409. 71. The goal of inspection is to
  410. 1.      a.      detect a bad process immediately
  411. 2.      b.      add value to a product or service
  412. 3.      c.      correct deficiencies in products
  413. 4.      d.      correct system deficiencies
  414. 5.      e.      all of the above
  415.  
  416. a (The role of inspection, moderate)
  417. 72. Which of the following is not a typical inspection point?
  418. 1.      a.      upon receipt of goods from your supplier
  419. 2.      b.      during the production process
  420. 3.      c.      before the product is shipped to the customer
  421. 4.      d.      at the supplier's plant while the supplier is producing
  422. 5.      e.      after a costly process
  423.  
  424. e (The role of inspection, moderate)
  425. 73. A good description of "source inspection" is inspecting
  426. 1.      a.      materials upon delivery by the supplier
  427. 2.      b.      the goods at the production facility before they reach the customer
  428. 3.      c.      the goods as soon as a problem occurs
  429. 4.      d.      goods at the supplier's plant
  430. 5.      e.      one's own work, as well as the work done at the previous work station
  431.  
  432. e (The role of inspection, moderate)
  433. 74. "Poka-yoke" is the Japanese term for
  434. 1.       a.     card
  435. 2.      b.      foolproof
  436. 3.      c.      continuous improvement
  437. 4.      d.      fishbone diagram
  438. 5.      e.      just-in-time production
  439.  
  440. b (The role of inspections, moderate) {AACSB: Multiculture and Diversity}
  441. 75.     What refers to training and empowering frontline workers to solve a problem immediately?
  442. 1.      a. just-in-time
  443. 2.      b.       poka-yoke
  444. 3.      c. benchmarking
  445. 4.      d.      kaizen
  446. 5.      e. service recovery
  447.  
  448. e (TQM in services, easy)
  449. 76.     A recent consumer survey conducted for a car dealership indicates that, when buying a car, customers are primarily concerned with the salesperson's ability to explain the car's features, the salesperson's friendliness, and the dealer's honesty. The dealership should be especially concerned with which determinants of service quality?
  450. 1.      a.      communication, courtesy, and credibility
  451. 2.      b.      competence, courtesy, and security
  452. 3.      c.      competence, responsiveness, and reliability
  453. 4.      d.      communication, responsiveness, and reliability
  454. 5.      e.      understanding/knowing customer, responsiveness, and reliability
  455.  
  456. a (TQM in services, moderate) {AACSB: Communication}
  457. 77.     Marketing issues such as advertising, image, and promotion are important to quality because
  458. 1.      a.      they define for consumers the tangible elements of a service
  459. 2.      b.      the intangible attributes of a product (including any accompanying service) may not be defined by the consumer
  460. 3.      c.      they educate consumers on how to use the product
  461. 4.      d.      they make the product seem more valuable than it really is
  462. 5.      e.      they raise expenses and therefore decrease profitability
  463.  
  464. b (TQM in services, moderate)
  465. 78.     Which of the determinants of service quality involves having the customer's best interests at heart?
  466. 1.      a.      access
  467. 2.       b.     courtesy
  468. 3.      c.      credibility
  469. 4.      d.      responsiveness
  470. 5.      e.      tangibles
  471.  
  472. c (TQM in services, moderate)
  473. 79.     Which of the determinants of service quality involves performing the service right the first time?
  474. 1.      a.      access
  475. 2.       b.     courtesy
  476. 3.      c.      credibility
  477. 4.      d.      reliability
  478. 5.      e.      responsiveness
  479.  
  480. d (TQM in services, moderate)
  481. FILL-IN-THE-BLANK
  482. 80.     Arnold Palmer Hospital uses ___________ to seek new ways to reduce readmission rates.
  483. continuous improvement (Global company profile, easy)
  484. 81.     ___________ costs result from production of defective parts or services before delivery to the customer.
  485. Internal failure (Defining quality, moderate)
  486. 82.     _______ is a set of environmental standards developed by the International Standards Organization.
  487. ISO 14000 (Defining quality, moderate) {AACSB: Ethical Reasoning}
  488. 83.     The work by _________ regarding how people learn from each other’s successes led to the field of cross-functional teamwork.  
  489. Armand Feigenbaum (Defining quality, moderate)
  490. 84.     Not only customers, but stockholders, suppliers, and others, are among the _________ whose values must be protected in making ethical decisions concerning the quality of products.
  491. stakeholders (Defining quality, easy) {AACSB: Ethical Reasoning}
  492. 85.     _________ is the Japanese word for the ongoing process of incremental improvement.
  493. Kaizen (Total quality management, moderate) {AACSB: Multiculture and Diversity}
  494. 86.     Enlarging employee jobs so that the added responsibility and authority is moved to the lowest level possible in the organization is called ______________.
  495. employee empowerment (Total quality management, moderate)
  496. 87.     Respect for _________ is a cornerstone of continuous improvement.
  497. people (Total quality management, moderate)
  498. 88.     _________ selects a demonstrated standard of performance that represents the very best performance for a process or activity.
  499. Benchmarking (Total quality management, moderate)
  500. 89.     A group of employees that meet on a regular basis with a facilitator to solve work-related problems in their work area is a(n) _______________.
  501. quality circle (Total quality management, easy) {AACSB: Communication}
  502. 90.     ___________ diagrams use a schematic technique to discover possible locations of quality problems.
  503. Cause-and-effect, or fishbone or Ishikawa (Tools of TQM, moderate)
  504. 91.     ________ are graphical presentations of data over time that show upper and lower control limits for processes we want to control.
  505. Control charts (Tools of TQM, moderate)
  506. 92.     ________ is doing the job properly with the operator ensuring that this is so.
  507. Source inspection (The role of inspection, moderate)
  508. SHORT ANSWER
  509. 93.     Identify the four costs of quality. Which one is hardest to evaluate? Explain. The four costs are internal, external, prevention, and appraisal. The hardest to estimate are external costs, or costs that occur after delivery of defective part or services.  These costs are very hard to quantify.  (Defining quality, moderate)
  510. 94.     State the American Society for Quality’s definition of quality. Of the three "flavors" or categories of quality definitions, which type is it? Explain. Quality is the totality of features and characteristics of a product or service that bear on its ability to satisfy stated or implied needs. This is user-based, as evidenced by the reference to needs, not to specifications or ingredients. (Defining quality, moderate)
  511. 95.     Quality has at least three categories of definitions; identify them. Provide a brief explanation of each. The three categories of quality are user-based (in the eyes of the beholder), manufacturing-based (conforming to standards), and product-based (measurable content of product). (Defining quality, moderate)
  512. 96.     Identify the five steps of DMAIC.
  513. (1) Define the project’s purpose, scope, and outputs and then identify the required process
  514. information, keeping in mind the customer’s definition of quality; (2) Measure the process
  515. and collect data; (3) Analyze the data, ensuring repeatability (the results can be duplicated),
  516. and reproducibility (others get the same result); (4) Improve, by modifying or redesigning,
  517. existing processes and procedures; and (5) Control the new process to make sure
  518. performance levels are maintained.
  519. (Total quality management, difficult)
  520.  
  521. 97.     In a sentence or two, summarize the contribution of Philip Crosby to quality management. In his book "Quality Is Free," Crosby pointed out that the costs of poor quality are understated, and that understatement made it easier for firms to accept low quality results. He also promoted "zero defects" and doing the job right the first time. (Defining quality, moderate)
  522. 98.     Identify the five core elements of ISO 14000. The five core elements of ISO 14000 are environmental management, auditing, performance evaluation, labeling, and life cycle assessment. (International quality standards, moderate)
  523. 99.     Describe how ISO 9000 has evolved in the past several years. The standards have become more of a quality management system.  These changes came about primarily through the December 2000 revisions. They emphasize top management leadership and customer requirements and satisfaction, while documented procedures now receive less emphasis.  (International quality standards, moderate)
  524. 100.    What steps can be taken to develop benchmarks? The steps are: determine what to benchmark, form a benchmarking team, identify benchmarking partners, collect and analyze benchmarking information, and take action to match or exceed the benchmark. (Total quality management, moderate)
  525. 101.    Explain how just-in-time processes relate to the quality of an organization's outputs. JIT relates to quality by cutting costs of quality, by lowering waste and scrap; by improving quality by shortening the time between error detection and error correction; and better quality means less inventory and better JIT system. (Total quality management, moderate)
  526. 102.    What is the difference between conforming quality and target-oriented quality? With conforming quality, any unit that meets specifications is acceptable, whether it is on the edges or center of the specification range. Target-oriented quality treats output as better the closer it is to exactly what the customer wants.  (Total quality management, moderate)
  527. 103.    Identify the major concepts of TQM. The major concepts of total quality management are continuous improvement, Six Sigma, employee empowerment, benchmarking, just-in-time (JIT), Taguchi concepts, and knowledge of TQM tools. (Total quality management, moderate)
  528. 104.    What is the quality loss function (QLF)? The quality loss function identifies all costs connected with poor quality and shows how these costs increase as the product moves away from being exactly what the customer wants.  (Total quality management, moderate)
  529. 105.    Explain how a Pareto chart can identify the most important causes of errors in a process. There will generally be some causes with much higher frequencies than others. The frequency plot will clearly show which cause has the highest frequency.  (Tools of TQM, moderate)
  530. 106.    How is source inspection related to employee empowerment? Source inspection involves the operator ensuring that the job is done properly. These operators are empowered to self-check their own work. Employees that deal with a system on a daily basis have a better understanding of the system than anyone else, and can be very effective at improving the system.  (The role of inspection, moderate)
  531. 107.    What is a poka-yoke?  Give an example. A poka-yoke is a foolproof device or technique that ensures production of good units every time. Examples will vary, but include McDonald's french fry scoop and standard sized bags used to ensure the correct quantity, and prepackaged surgical coverings that contain exactly the items needed for a medical procedure.  (The role of inspection, moderate)
  532. 108.    Identify the ten determinants of service quality. Describe two of them in a sentence or two each. The ten are reliability, responsiveness, competence, access, courtesy, communication, credibility, security, understanding, and tangibles. Descriptions are found in Table 6.5. Here are two examples: Access involves approachability and ease of contact.  Security is the freedom from danger, risk, or doubt. (TQM in services, moderate)
  533. PROBLEMS
  534. 109.    Management is concerned that workers create more product defects at the very beginning and end of a work shift than at other times of their eight hour workday. Construct a scatter diagram with the following data, collected last week. Is management justified in its belief?
  535.                         Number of defects      
  536.          Monday         Tuesday                 Wednesday       Thursday        Friday
  537. First hour at work      12      9               6       8       7
  538. Second hour at work     6       5               3       4       5
  539. Third hour at work      5       2               4       3       3
  540. Fourth hour at work     4       0               5       2       3
  541. Fifth hour at work      1       6               2       4       5
  542. Sixth hour at work      4       3               3       2       1
  543. Seventh hour at work    7       4               4       6       3
  544. Eighth hour at work     5       7               8       5       9
  545.  
  546. Solution:
  547.  
  548. There is fairly convincing evidence that there are more defects in the first and last shift hours than at other times. (Tools of TQM, moderate) {AACSB: Analytic Skills}
  549. 110. Perform a Pareto analysis on the following information:
  550. Reason for unsatisfying stay at hotel
  551. Frequency
  552. 6
  553. Unfriendly staff
  554.  
  555. 2
  556. Room not clean
  557. 3
  558. Room not ready at check-in
  559. 33
  560. No towels at pool
  561. 4
  562. No blanket for pull-out sofa
  563.  3
  564. Pool water too cold
  565. 16
  566. Breakfast of poor quality
  567. 23
  568. Elevator too slow or not working
  569. 7
  570. Took too long to register
  571. 3
  572. Bill incorrect
  573. Total
  574. 100
  575. Solution
  576.  
  577. (Tools of TQM, moderate) {AACSB: Analytic Skills}
  578. 111. Perform a Pareto analysis on the following         information:
  579. Reason for unsatisfying check-out at store      Frequency
  580. Unfriendly cashier      27
  581. Incorrect change        4
  582. Cashier too slow        9
  583. Price check     34
  584. Poorly bagged merchandise       2
  585. Slow receiving check approval   3
  586.  
  587. Solution
  588. 100
  589. 80
  590. 60
  591. 40
  592. 20
  593. 0 100
  594.  
  595. 50
  596. 0
  597. Price check Cashier too slow Slow receiving check
  598. Unfriendly cashier Incorrect change Poorly bagged mercha
  599.  
  600. (Tools of TQM, moderate) {AACSB: Analytic Skills}
  601. 112.    Construct a cause-and-effect diagram showing why a student might be dissatisfied with the cafeteria.
  602. Solution: (Note that answers may vary considerably)
  603.  
  604. 113.    Pretend that you have just come from a relative's wedding reception. It didn't turn out as well as it should have, and the bride's parents are pretty mad at how things turned out. Use the supplied template to construct a conventional cause-and-effect diagram. Identify twelve sources of defects for the issue "dissatisfied customer of wedding reception caterer." (Your dozen need not be exactly three per main cause, but should be a balanced treatment.) Categorize each cause onto a main cause. Provide brief support for each of your choices
  605.  
  606. Solution: Individual responses may vary considerably; some of the variation in responses comes from differing views of what is the caterer's realm of responsibility, compared to what might be assigned to a wedding planner instead. Material: not enough plates, glassware, utensils; prepared wrong dish; food was cold; ran out of food; food was "bad." Machinery: air conditioning/heating was broken; room was dirty; room too small; furniture poorly arranged; wedding "props" ugly or shopworn. Method: not on time; overcharged; not enough workers. Manpower: wait staff not properly attired; wait staff not speedy; wait staff not courteous. Responses should comment as necessary to show why a fault lies on a certain main branch; as an example, "cold food" might be interpreted as Method, not Material. (Tools of TQM, moderate) {AACSB: Analytic Skills}
  607. 114.    A refrigeration and heating company—one that installs and repairs home central air and heating systems—has asked your advice on how to analyze their service quality. They have logged customer complaints. Here's a recent sampling. Use the supplied template to construct a conventional cause-and-effect diagram. Place each of the complaints onto a main cause; justify your choice with a brief comment as necessary.
  608. 1        "I was overcharged—your labor rates are too high."
  609. 2        "The repairman left trash where he was working."
  610. 3        "You weren't here when you said you would be. You should call when you must be late."  
  611. 4        "Your repairman smoked in my house."
  612. 5        "The part you installed is not as good as the factory original."
  613. 6        "Your repairman was here for over two hours, but he wasn't taking his work seriously."
  614. 7        "You didn't tighten some of the fittings properly—the system's leaking."
  615. 8        "Your estimate of repair costs was WAY off."  
  616. 9        "I called you to do an annual inspection, but you've done more—work that I didn't authorize."
  617. 10       "Your mechanic is just changing parts—he doesn't have a clue what's really wrong."
  618. 11       "Your bill has only a total—I wanted to see detail billing."
  619. 12       "Your testing equipment isn't very new—are you sure you've diagnosed the problem?"
  620. 13       "One of the workmen tracked mud into my living room."
  621.  
  622.  
  623. Solution: Individual responses may vary. A typical set of responses might be Material: item 5. Method: items 1, 3, 8, 9, 11. Machinery: item 12; Manpower: items 2, 4, 6, 7, 10, 13. Items 8 and 11 could be manpower or method. (Tools of TQM, moderate)  {AACSB: Analytic Skills}
  624. SUPPLEMENT 6: STATISTICAL PROCESS CONTROL
  625.  
  626. TRUE/FALSE
  627. 1.      Some degree of variability is present in almost all processes.
  628. True (Statistical Process Control (SPC), easy)
  629. 2.      The purpose of process control is to detect when natural causes of variation are present.
  630. False (Statistical Process Control (SPC), moderate)
  631. 3.      A normal distribution is generally described by its two parameters: the mean and the range.
  632. False (Statistical Process Control (SPC), easy)
  633. 4.      A process is said to be in statistical control when assignable causes are the only sources of variation.
  634. False (Statistical Process Control (SPC), moderate)
  635. 5.      Mistakes stemming from workers' inadequate training represent an assignable cause of variation.
  636. True (Statistical Process Control (SPC), easy)
  637. 6.      Averages of small samples, not individual measurements, are generally used in statistical process control.
  638. True (Statistical Process Control (SPC), moderate)
  639. 7.      The X-bar chart indicates that a gain or loss of uniformity has occurred in dispersion of a production process.
  640. False (Statistical Process Control (SPC), moderate)
  641. 8.      The Central Limit Theorem states that when the sample size increases, the distribution of the sample means will approach the normal distribution.
  642. True (Statistical Process Control (SPC), moderate)
  643. 9.      In statistical process control, the range often substitutes for the standard deviation.
  644. True (Statistical Process Control (SPC), moderate)
  645. 10.     If the process average is in control, then the process range must also be in control.
  646. False (Statistical Process Control (SPC), moderate)
  647. 11.     A process range chart illustrates the amount of variation within the samples.
  648. True (Statistical Process Control (SPC), moderate)
  649. 12.     Mean charts and range charts complement one another, one detecting shifts in process average, the other detecting shifts in process dispersion.
  650. True (Statistical Process Control (SPC), moderate)
  651. 13.     X-bar charts are used when we are sampling attributes.
  652. False (Statistical Process Control (SPC), easy)
  653. 14.     To measure the voltage of batteries, one would sample by attributes.
  654. False (Statistical Process Control (SPC), easy)
  655. 15.     A p-chart is appropriate to plot the number of typographic errors per page of text.
  656. False (Statistical Process Control (SPC), easy)
  657. 16.     A c-chart is appropriate to plot the number of flaws in a bolt of fabric.
  658. True (Statistical Process Control (SPC), easy)
  659. 17.     The x-bar chart, like the c-chart, is based on the exponential distribution.
  660. False (Statistical Process Control (SPC), moderate)
  661. 18.     A process that is in statistical control will always yield products that meet their design specifications.
  662. False (Process capability, moderate)
  663. 19.     The higher the process capability ratio, the greater the likelihood that process will be within design specifications.
  664. True (Process capability, moderate)
  665. 20.     The Cpk index measures the difference between desired and actual dimensions of goods or services produced.
  666. True (Process capability, moderate)
  667. 21.     Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample.
  668. True (Acceptance sampling, moderate)
  669. 22.     A lot that is accepted by acceptance sampling is free of defects.
  670. False (Acceptance sampling, moderate)
  671. 23.     In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.
  672. True (Acceptance sampling, moderate)
  673. 24.     The probability of rejecting a good lot is known as consumer's risk.
  674. False (Acceptance sampling, moderate)
  675. 25.     An acceptance sampling plan must define "good lots" and "bad lots" and specify the risk level associated with each one.
  676. True (Acceptance sampling, moderate)
  677. 26.     The acceptable quality level (AQL) is the average level of quality we are willing to accept.
  678. False (Acceptance sampling, moderate)
  679. 27.     The steeper an OC curve, the better it discriminates between good and bad lots.
  680. True (Acceptance sampling, moderate)
  681. MULTIPLE CHOICE
  682. 28. If a sample of items is taken and the mean of the sample is outside the control limits the process is
  683. 1.      a. out of control and the cause should be established
  684. 2.      b. in control, but not capable of producing within the established control limits
  685. 3.      c. within the established control limits with only natural causes of variation
  686. 4.      d. monitored closely to see if the next sample mean will also fall outside the control limits
  687. 5.      e. producing high quality products
  688.  
  689. a (Statistical Process Control (SPC), moderate)
  690. 29. The causes of variation in statistical process control are
  691. 1.      a. cycles, trends, seasonality, and random variations
  692. 2.      b. producer's causes and consumer's causes
  693. 3.      c. mean and range
  694. 4.      d. natural causes and assignable causes
  695. 5.      e. Type I and Type II
  696.  
  697. d (Statistical Process Control (SPC), moderate)
  698. 30. Natural variations
  699. 1.      a. affect almost every production process
  700. 2.      b. are the many sources of variation that occur when a process is under control
  701. 3.      c. when grouped, form a pattern, or distribution
  702. 4.      d. are tolerated, within limits, when a process is under control
  703. 5.      e. All of the above are true.
  704.  
  705. e (Statistical Process Control (SPC), moderate)
  706. 31. Natural variations
  707. 1.      a. are variations that are to be identified and eliminated
  708. 2.      b. are variations that can be traced to a specific cause
  709. 3.      c. are the same as assignable variations
  710. 4.      d. lead to occasional false findings that processes are out of control
  711. 5.      e. play no role in statistical process control
  712.  
  713. d (Statistical Process Control (SPC), moderate)
  714. 32. Assignable variation
  715. 1.      a. is a sign that a process is under control
  716. 2.      b. is to be identified and eliminated
  717. 3.      c. is the same as random variation
  718. 4.      d. is variation that cannot be traced to a specific cause
  719. 5.      e. leads to a steep OC curve
  720.  
  721. b (Statistical Process Control (SPC), moderate)
  722. 33. Assignable causes
  723. 1.      a. are not as important as natural causes
  724. 2.      b. are within the limits of a control chart
  725. 3.      c. depend on the inspector assigned to the job
  726. 4.      d. are also referred to as "chance" causes
  727. 5.      e. are causes of variation that can be identified and removed
  728.  
  729. e (Statistical Process Control (SPC), moderate)
  730. 34.     Control charts for variables are based on data that come from
  731. 1.      a.      acceptance sampling
  732. 2.      b.      individual items
  733. 3.      c.      averages of small samples
  734. 4.      d.      averages of large samples
  735. 5.      e.      the entire lot
  736.  
  737. c (Statistical Process Control (SPC), moderate)
  738. 35.     The purpose of an X chart is to determine whether there has been a  
  739. 1.      a.      gain or loss in uniformity
  740. 2.      b.      change in the percent defective in a sample
  741. 3.      c.      change in the central tendency of the process output
  742. 4.      d.      change in the number of defects in a sample
  743. 5.      e.      change in the AOQ
  744.  
  745. c (Statistical Process Control (SPC), moderate)
  746. 36.     Statistical process control charts
  747. 1.      a.      display the measurements on every item being produced
  748. 2.      b.      display upper and lower limits for process variables or attributes, and signal when a process is no longer in control
  749. 3.      c.      indicate to the process operator the average outgoing quality of each lot
  750. 4.      d.      indicate to the operator the true quality of material leaving the process
  751. 5.      e.      none of the above
  752.  
  753. b (Statistical Process Control (SPC), moderate)
  754. 37.     A sample of parts is measured. The mean of this sample is in the middle of the control limits, but some individual parts measure too low for design specifications and other parts measure too high. Which of the following is true?
  755. 1.      a.      The process is out of control, and the cause should be established.
  756. 2.      b.      The process is in control, but not capable of producing within the established control limits.
  757. 3.      c.      The process is within the established control limits with only natural causes of variation.
  758. 4.      d.      The process is outside the established control limits with only natural causes of variation.
  759. 5.      e.      The process is in control, and there is nothing to worry about.
  760.  
  761. b (Statistical Process Control (SPC), difficult)
  762. 38.     The Central Limit Theorem
  763. 1.      a.      is the theoretical foundation of the c-chart
  764. 2.      b.      states that the average of assignable variations is zero  
  765. 3.      c.      allows managers to use the normal distribution as the basis for building some control charts
  766. 4.      d.      states that the average range can be used as a proxy for the standard deviation
  767. 5.      e.      controls the steepness of an operating characteristic curve
  768.  
  769. c (Statistical Process Control (SPC), difficult)
  770. 39.     For an x-bar chart where the standard deviation is known, the Upper Control Limit
  771. 1.      a. is 3⋅σ below the mean of sample means for a 3σ control chart
  772. 2.      b. is 3⋅σ  above the mean of sample means for a 3σ control chart
  773. 3.      c. is 3⋅σ  n  below the mean of sample means for a 3σ control chart
  774. 4.      d. is 3⋅σ n  above the mean of sample means for a 3σ control chart
  775. 5.      e. cannot be calculated unless the average range is known
  776.  
  777. d (Statistical Process Control (SPC), moderate)
  778. 40.     Up to three standard deviations above or below the centerline is the amount of variation that statistical process control allows for
  779. 1.      a. Type I errors
  780. 2.      b. about 95.5% variation
  781. 3.      c. natural variation
  782. 4.      d. all types of variation
  783. 5.      e. assignable variation
  784.  
  785. c (Statistical Process Control (SPC), moderate)
  786. 41.     A manager wants to build 3σ control limits for a process. The target value for the mean of the process is 10 units, and the standard deviation of the process is 6. If samples of size 9 are to be taken, the UCL and LCL will be
  787. 1.      a. -8 and 28
  788. 2.      b. 16 and 4
  789. 3.       c. 12 and 8
  790. 4.      d. 4 and 16
  791. 5.      e. 8 and 12
  792.  
  793. b (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  794. 42.     The type of inspection that classifies items as being either good or defective is
  795. 1.       a. variable inspection
  796. 2.      b. attribute inspection
  797. 3.      c. fixed inspection
  798. 4.      d. all of the above
  799. 5.      e. none of the above
  800.  
  801. b (Statistical Process Control (SPC), moderate)
  802. 43.     The x-bar chart tells us whether there has been a
  803. 1.      a. gain or loss in dispersion
  804. 2.      b. change in the percent defective in a sample
  805. 3.      c. change in the central tendency of the process output
  806. 4.      d. change in the number of defects in a sample
  807. 5.      e. none of the above
  808.  
  809. c (Statistical Process Control (SPC), moderate)
  810. 44.     The mean and standard deviation for a process for which we have a substantial history are x = 120 and σ = 2. For the variable control chart, a sample size of 16 will be used. What is the mean of the sampling distribution?
  811. 1.       a. 1/8 (0.125)
  812. 2.       b. 0.5
  813. 3.       c. 2
  814. 4.      d. 40
  815. 5.      e. none of the above
  816.  
  817. e (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  818. 45.     Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 oz. Which type of chart(s) would you recommend?
  819. 1.      a. p-charts
  820. 2.      b. c-charts
  821. 3.      c. x-and R-charts
  822. 4.      d. x-, but not R-charts
  823. 5.      e. both p- and c-charts
  824.  
  825. c (Statistical Process Control (SPC), moderate)
  826. 46.     If x = 23 ounces, σ = 0.4 ounces, and n = 16, the ±3σ control limits will be
  827. 1.      a. 21.8 to 24.2 ounces
  828. 2.      b. 23 ounces
  829. 3.      c. 22.70 to 23.30 ounces
  830. 4.      d. 22.25 to 23.75 ounces
  831. 5.      e. none of the above
  832.  
  833. c (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  834. 47.     The usual purpose of an R-chart is to signal whether there has been a
  835. 1.      a. gain or loss in dispersion
  836. 2.      b. change in the percent defective in a sample
  837. 3.      c. change in the central tendency of the process output
  838. 4.      d. change in the number of defects in a sample
  839. 5.      e. none of the above
  840.  
  841. a (Statistical Process Control (SPC), moderate)
  842. 48.     A manager wishes to build a 3σ range chart for a process. The sample size is five, the mean of sample means is 16.01, and the average range is 5.3. From Table S6.1, the appropriate value of D3 is 0, and D4 is 2.115. The UCL and LCL for this range chart are
  843. 1.      a. 33.9 and 11.2
  844. 2.      b. 33.9 and 0
  845. 3.      c. 11.2 and 0
  846. 4.       d. 6.3 and 0
  847. 5.      e. 31.91 and 0.11
  848.  
  849. c (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  850. 49.     Plots of sample ranges indicate that the most recent value is below the lower control limit. What course of action would you recommend?
  851. 1.      a. Since there is no obvious pattern in the measurements, variability is in control.
  852. 2.      b. One value outside the control limits is insufficient to warrant any action.
  853. 3.      c. Lower than expected dispersion is a desirable condition; there is no reason to investigate.
  854. 4.      d. The process is out of control; reject the last units produced.
  855. 5.      e. Variation is not in control; investigate what created this condition.
  856.  
  857. e (Statistical Process Control (SPC), difficult)
  858. 50.     To set x-chart upper and lower control limits, one must know the process central line, which is the
  859. 1.      a. average of the sample means
  860. 2.      b. total number of defects in the population
  861. 3.      c. percent defects in the population
  862. 4.      d. size of the population
  863. 5.       e. average range
  864.  
  865. a (Statistical Process Control (SPC), moderate)
  866. 51.     According to the text, the most common choice of limits for control charts is usually
  867. 1.      a. ± 1 standard deviation
  868. 2.      b. ± 2 standard deviations
  869. 3.      c. ± 3 standard deviations
  870. 4.      d. ± 3 standard deviations for means and ± 2 standard deviations for ranges
  871. 5.      e. none of the above
  872.  
  873. c (Statistical Process Control (SPC), moderate)
  874. 52.     Which of the following is true of a p-chart?
  875. 1.      a. The lower control limit is found by subtracting a fraction from the average number of defects.
  876. 2.      b. The lower control limit indicates the minimum acceptable number of defects.
  877. 3.      c. The lower control limit may be below zero.
  878. 4.      d. The lower control limit may be at zero.
  879. 5.      e. The lower control limit is the same as the lot tolerance percent defective.
  880.  
  881. d (Statistical Process Control (SPC), moderate)
  882. 53.     The normal application of a p-chart is in
  883. 1.      a. process sampling by variables
  884. 2.      b. acceptance sampling by variables
  885. 3.      c. process sampling by attributes
  886. 4.      d. acceptance sampling by attributes
  887. 5.      e. none of the above
  888.  
  889. c (Statistical Process Control (SPC), moderate)
  890. 54.     The statistical process chart used to control the number of defects per unit of output is the
  891. 1.      a. x-chart
  892. 2.      b. R-chart
  893. 3.       c. p-chart
  894. 4.      d. AOQ chart
  895.  e c-chart
  896.  
  897.  
  898. e (Statistical Process Control (SPC), moderate)
  899. 55.     The c-chart signals whether there has been a  
  900. 1.      a. gain or loss in uniformity
  901. 2.      b. change in the number of defects per unit
  902. 3.      c. change in the central tendency of the process output
  903. 4.      d. change in the percent defective in a sample
  904. 5.      e. change in the AOQ
  905.  
  906. b (Statistical Process Control (SPC), moderate)
  907. 56.     The local newspaper receives several complaints per day about typographic errors. Over a seven-day period, the publisher has received calls from readers reporting the following number of errors: 4, 3, 2, 6, 7, 3, and 9. Based on these data alone, what type of control chart(s) should the publisher use?
  908. 1.       a. p-chart
  909. 2.      b. c-chart
  910. 3.       c. x-chart
  911. 4.      d. R-chart
  912.  
  913.  e. x-and R-charts
  914. b (Statistical Process Control (SPC), moderate)
  915.  
  916. 57.     A manufacturer uses statistical process control to control the quality of the firm's products. Samples of 50 of Product A are taken, and a defective/acceptable decision is made on each unit sampled. For Product B, the number of flaws per unit is counted. What type(s) of control charts should be used?
  917. 1.      a. p-charts for A and B
  918. 2.      b. p-chart for A, c-chart for B
  919. 3.      c. c-charts for both A and B
  920. 4.      d. p-chart for A, mean and range charts for B
  921. 5.      e. c-chart for A, mean and range charts for B
  922.  
  923. b (Statistical Process Control (SPC), difficult)
  924. 58.     A nationwide parcel delivery service keeps track of the number of late deliveries (more than 30 minutes past the time promised to clients) per day. They plan on using a control chart to plot their results. Which type of control chart(s) would you recommend?
  925. 1.      a. x-and R-charts
  926. 2.      b. p-charts
  927. 3.      c. c-charts
  928. 4.      d. x-, but not R-charts
  929. 5.      e. both p- and c-charts
  930.  
  931. c (Statistical Process Control (SPC), moderate)
  932. 59.     A run test is used
  933. 1.      a. to examine variability in acceptance sampling plans
  934. 2.      b. in acceptance sampling to establish control
  935. 3.      c. to examine points in a control chart to check for natural variability
  936. 4.      d. to examine points in a control chart to check for nonrandom variability
  937. 5.      e. none of the above
  938.  
  939. d (Statistical Process Control (SPC), moderate)
  940. 60.     Which of the following is true regarding the process capability index Cpk?
  941. 1.      a.      A Cpk index value of 1 is ideal, meaning all units meet specifications.
  942. 2.      b.      The larger the Cpk, the more units meet specifications.
  943. 3.      c.      The Cpk index can only be used when the process centerline is also the specification centerline.
  944. 4.      d.      Positive values of the Cpk index are good; negative values are bad.
  945. 5.      e.      None of the above is true.
  946.  
  947. b (Process capability, moderate)
  948. 61.     If the Cpk index exceeds 1
  949. 1.      a.      the AQL must be smaller than the LTPD
  950. 2.      b.      σ must be less than one-third of the difference between the specification and the process mean
  951. 3.      c.      the x-bar chart must indicate that the process is in control
  952. 4.      d.      the process is capable of Six Sigma quality
  953. 5.      e.      the process is characterized as "not capable"
  954.  
  955. b (Process capability, moderate)
  956. 62.     The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by a Cpk index of
  957. 1.      a.      0
  958. 2.      b.      1
  959. 3.      c.      1.33
  960. 4.       d.     1.67
  961. 5.       e.     2
  962.  
  963. e (Process capability), moderate)
  964. 63.     A Cpk index of 1.00 equates to a defect rate of  
  965. 1.      a.      five percent
  966. 2.      b.      3.4 defects per million
  967. 3.      c.      2.7 per 1,000 items
  968. 4.       d.     97.23 percent
  969. 5.      e.      one percent
  970.  
  971. c (Process capability, moderate)
  972. 64.     Acceptance sampling
  973. 1.      a.      is the application of statistical techniques to the control of processes
  974. 2.      b.      was developed by Walter Shewhart of Bell Laboratories
  975. 3.      c.      is used to determine whether to accept or reject a lot of material based on the evaluation of a sample
  976. 4.      d.      separates the natural and assignable causes of variation
  977. 5.      e.      all of the above
  978.  
  979. c (Acceptance sampling, moderate)
  980. 65.     Acceptance sampling's primary purpose is to
  981. 1.      a.      estimate process quality
  982. 2.      b.      estimate lot quality
  983. 3.      c.      detect and eliminate defectives
  984. 4.      d.      decide if a lot meets predetermined standards
  985. 5.      e.      determine whether defective items found in sampling should be replaced
  986.  
  987. d (Acceptance sampling, difficult)
  988. 66.     An acceptance sampling plan's ability to discriminate between low quality lots and high quality lots is described by
  989. 1.      a.      a Gantt chart
  990. 2.      b.      the Central Limit Theorem
  991. 3.      c.      a process control chart
  992. 4.      d.      an operating characteristics curve
  993. 5.      e.      a range chart
  994.  
  995. d (Acceptance sampling, moderate)
  996. 67.     Acceptance sampling
  997. 1.      a.      may involve inspectors taking random samples (or batches) of finished products and measuring them against predetermined standards
  998. 2.      b.      may involve inspectors taking random samples (or batches) of incoming raw materials and measuring them against predetermined standards
  999. 3.      c.      is more economical than 100% inspection
  1000. 4.      d.      may be either of a variable or attribute type, although attribute inspection is more common in the business environment
  1001. 5.      e.      All of the above are true.
  1002.  
  1003. e (Acceptance sampling, moderate)
  1004. 68.     Which of the following statements on acceptance sampling is true?
  1005. 1.      a.      Acceptance sampling draws samples from a population of items, tests the sample, and accepts the entire population if the sample is good enough, and rejects it if the sample is poor enough.
  1006. 2.      b.      The sampling plan contains information about the sample size to be drawn and the critical acceptance or rejection numbers for that sample size.
  1007. 3.      c.      The steeper an operating characteristic curve, the better its ability to discriminate between good and bad lots.
  1008. 4.      d.      All of the above are true.
  1009. 5.      e.      All of the above are false.
  1010.  
  1011. d (Acceptance sampling, moderate)
  1012. 69.     Acceptance sampling is usually used to control
  1013. 1.      a.      the number of units output from one stage of a process which are then sent to the next stage
  1014. 2.      b.      the number of units delivered to the customer
  1015. 3.      c.      the quality of work-in-process inventory
  1016. 4.      d.      incoming lots of purchased products
  1017. 5.      e.      all of the above
  1018.  
  1019. d (Acceptance sampling, moderate)
  1020. 70.     An operating characteristic (OC) curve describes
  1021. 1.      a.      how many defects per unit are permitted before rejection occurs
  1022. 2.      b.      the sample size necessary to distinguish between good and bad lots
  1023. 3.      c.      the most appropriate sampling plan for a given incoming product quality level
  1024. 4.      d.      how well an acceptance sampling plan discriminates between good and bad lots
  1025. 5.      e.      none of the above
  1026.  
  1027. d (Acceptance sampling, moderate)
  1028. 71.     An operating characteristics curve shows
  1029. 1.      a. upper and lower product specifications
  1030. 2.      b. product quality under different manufacturing conditions
  1031. 3.      c. how the probability of accepting a lot varies with the population percent defective
  1032. 4.      d. when product specifications don't match process control limits
  1033. 5.      e. how operations affect certain characteristics of a product
  1034.  
  1035. c (Acceptance sampling, moderate)
  1036. 72.     Producer's risk is the probability of
  1037. 1.      a. accepting a good lot
  1038. 2.      b. rejecting a good lot
  1039. 3.      c. rejecting a bad lot
  1040. 4.      d. accepting a bad lot
  1041. 5.      e. none of the above
  1042.  
  1043. b (Acceptance sampling, moderate)
  1044. 73.     Which of the following is true regarding the relationship between AOQ and the true population percent defective?
  1045. 1.      a. AOQ is greater than the true percent defective.
  1046. 2.      b. AOQ is the same as the true percent defective.
  1047. 3.      c. AOQ is less than the true percent defective.
  1048. 4.      d. There is no relationship between AOQ and the true percent defective.
  1049. 5.      e. The relationship between these two cannot be determined.
  1050.  
  1051. c (Acceptance sampling, difficult)
  1052. 74.     Average outgoing quality (AOQ) usually
  1053. 1.      a. worsens with inspection
  1054. 2.      b. stays the same with inspection
  1055. 3.      c. improves with inspection
  1056. 4.      d. may either improve or worsen with inspection
  1057. 5.      e. is the average quality before inspection
  1058.  
  1059. c (Acceptance sampling, moderate)
  1060. 75.     A Type I error occurs when
  1061. 1.      a. a good lot is rejected
  1062. 2.      b. a bad lot is accepted
  1063. 3.      c. the number of defectives is very large
  1064. 4.      d. the population is worse than the AQL
  1065. 5.      e. none of the above
  1066.  
  1067. a (Acceptance sampling, moderate)
  1068. 76.     A Type II error occurs when
  1069. 1.      a. a good lot is rejected
  1070. 2.      b. a bad lot is accepted
  1071. 3.      c. the population is worse than the LTPD
  1072. 4.      d. the proportion of defectives is very small
  1073. 5.      e. none of the above
  1074.  
  1075. b (Acceptance sampling, moderate)
  1076. 77.     In most acceptance sampling plans, when a lot is rejected, the entire lot is inspected and all defective items are replaced. When using this technique the AOQ
  1077. 1.      a. worsens (AOQ becomes a larger fraction)
  1078. 2.      b. improves (AOQ becomes a smaller fraction)
  1079. 3.      c. is not affected, but the AQL is improved
  1080. 4.      d. is not affected
  1081. 5.      e. falls to zero
  1082.  
  1083. b (Acceptance sampling, moderate)
  1084. 78.     An acceptance sampling plan is to be designed to meet the organization's targets for product quality and risk levels. Which of the following is true?
  1085. 1.      a. n and c determine the AQL.
  1086. 2.      b. AQL, LTPD, α and β collectively determine n and c.
  1087. 3.      c. n and c are determined from the values of AQL and LTPD.
  1088. 4.      d. α    and β are determined from the values of AQL and LTPD.
  1089. 5.      e. None of the above is true.
  1090.  
  1091. b (Acceptance sampling, moderate)
  1092. 79.     A lot that is accepted by acceptance sampling
  1093. 1.      a. has more defects than existed before the sampling
  1094. 2.      b. has had all its defects removed by 100% inspection
  1095. 3.      c. will have the same defect percentage as the LTPD
  1096. 4.      d. has no defects present
  1097. 5.      e. All of the above are false.
  1098.  
  1099. e (Acceptance sampling, moderate)
  1100. 80.     Which of the following statements about acceptance sampling is true?
  1101. 1.      a. The steeper an OC curve, the better it discriminates between good and bad lots.
  1102. 2.      b. Acceptance sampling removes all defective items.
  1103. 3.      c. Acceptance sampling of incoming lots is replacing statistical process control at the supplier.
  1104. 4.      d. Acceptance sampling occurs continuously along the assembly line.
  1105. 5.      e. All of the above are true.
  1106.  
  1107. a (Acceptance sampling, moderate)
  1108. 81.     Which of the following is true regarding the average outgoing quality level?
  1109. 1.      a. An AOQ value of 1 is ideal, because all defects have been removed.
  1110. 2.      b. AOQ is always greater than AQL but less than LTPD.
  1111. 3.      c. AOQ rises (worsens) following inspection of failed lots.
  1112. 4.      d. AOQ is very low (very good) for extremely poor quality lots.
  1113. 5.      e. None of the above is true.
  1114.  
  1115. d (Acceptance sampling, difficult)
  1116. FILL-IN-THE-BLANK
  1117. 82.     _____________ is variation in a production process that can be traced to specific causes.
  1118. Assignable variation (Statistical Process Control (SPC), moderate)
  1119. 83.     The _________ is the chief way to control attributes.
  1120. P-chart (Statistical Process Control (SPC), moderate)
  1121. 84.     If a process has only natural variations, _________ percent of the time the sample averages will fall inside the ± 3σ  n (or ± 3σ x ) control limits.
  1122. 99.73 (Statistical Process Control (SPC), easy)
  1123. 85.     The _________ is a quality control chart that indicates when changes occur in the central tendency of a production process. x-bar chart (Statistical Process Control (SPC), moderate)
  1124. 86.     The _________ are calculated to show how much allowance should be made for natural variation.
  1125. UCL and LCL, or upper and lower control limits (Statistical Process Control (SPC), easy)
  1126. 87.     The _________ is a quality control chart used to control the number of defects per unit of output.
  1127. c-chart (Statistical Process Control (SPC), moderate)
  1128. 88.     The term _________ is used to describe how well a process makes units within design specifications (or tolerances). process capability (Process capability, moderate)
  1129. 89.     A Cpk index greater than _________ is a capable process, one that generates fewer than 2.7 defects per 1000 at the ± 3σ level. unity, or 1 (Process capability, moderate)
  1130. 90.     ___________ is a method of measuring samples of lots or batches of product against predetermined standards. Acceptance sampling (Acceptance sampling, moderate)
  1131. 91.     A(n) _____________ is a graph that describes how well an acceptance plan discriminates between good and bad lots. OC or operating characteristics curve (Acceptance sampling, moderate)
  1132. 92.     The __________ is the poorest level of quality that we are willing to accept.
  1133. AQL or acceptable quality level (Acceptance sampling, moderate)
  1134. 93.     The ____________ is the percent defective in an average lot of goods inspected through acceptance sampling. AOQ or average outgoing quality (Acceptance sampling, moderate)
  1135. SHORT ANSWER
  1136. 94.     What is the basic objective of a process control system? It is to provide a statistical signal when assignable causes of variation are present. (Statistical Process Control (SPC), moderate)
  1137. 95.     Briefly explain what the Central Limit Theorem has to do with control charts. The CLT underlies the distribution of sample means and the standard deviation of sample means. It leads to the usability of the normal distribution in control charts. (Statistical Process Control (SPC), moderate)
  1138. 96.     What are the three possible results (or findings) from the use of control charts? The results of a control chart can indicate (a) in control and capable, (b) in control but not capable, and (c) out of control. (Statistical Process Control (SPC), moderate)
  1139. 97.     Why do range charts exist? Aren't x-bar charts enough? Range charts and mean charts perform different functions. The mean chart is used to detect changes in the average of a process. But that average might stay the same while output is getting more scattered. The purpose of the range chart is to detect changes in the dispersion of a process. (Statistical Process Control (SPC), moderate)
  1140. 98.     Examine the Statistical Process Control outputs below. Answer the following questions.
  1141. 1.      a. What is the sample size?
  1142. 2.      b. What is the number of samples?
  1143. 3.      c. What is the mean of sample 8; what is the range of sample 10?
  1144. d.. Is this process in control? Explain--a simple Yes or No is insufficient.
  1145.  
  1146. 4.      e. What additional steps should the quality assurance team take?
  1147.  
  1148.  
  1149. The sample size is 4; ten samples were taken. The mean of sample 8 is 12.175; the range of sample 10 is 0.5. This chart is built on 2-sigma limits, so the probability of a false signal is about 4.5%. The process is not in control—while all means are within limits, the range for sample 3 is too large. Investigate for assignable cause and eliminate that cause. (Statistical Process Control (SPC), difficult) {AACSB: Analytic Skills}
  1150. 99.     Can "in control" and "capable" be shown on the same chart? Only indirectly. The chart illustrating control plots the averages of small samples, while "Capability" is based on the dimensions of individual units. Figure S6.2 suggests that an overly wide range for sample means implies an overly large range for individual values as well. (Statistical Process Control (SPC), moderate)
  1151. 100.    What is the difference between natural and assignable causes of variation? Natural variations are those variations that are inherent in the process and for which there is no identifiable cause. These variations fall in a natural pattern.  Assignable causes are variations beyond those that can be expected to occur because of natural variation. Thesevariations can be traced to a specific cause.  (Statistical Process Control (SPC), moderate)
  1152. 101.    Why are X and R-charts usually used hand in hand? The ultimate goal of the X and R-charts is to ascertain, by a sampling procedure, that the relevant parameter is kept within specific upper and lower bounds. The X-bar chart alone tells us only that the average or variable values are within the appropriate limits. The combination of X and the R-charts allows one to determine that both the average and the deviations are within the limits.  (Statistical Process Control (SPC), moderate)
  1153. 102.    What does it mean for a process to be "capable"? Process capability implies that the natural variation of the process must be small enough to produce products that meet the specifications or tolerances required.  (Process capability, moderate)
  1154. 103.    What is the difference between the process capability ratio Cp and the process capability index Cpk? The Cp ratio does not consider how well the process average is centered on the target value.  However, Cpk does consider how well the process is centered.  (Process capability, moderate)
  1155. 104.    A process is operating in such a manner that the mean of the process is exactly on the lower specification limit. What must be true about the two measures of capability for this process? The Cp ratio does not consider how well the process average is centered on the target value; its value is unaffected by the setting for the process mean.  However, Cpk does consider how well the process is centered; with x-bar on the LSL, the formula guarantees a Cpk of zero.  (Process capability, moderate)
  1156. 105.    What is acceptance sampling? Acceptance sampling is a method of measuring random samples of lots or batches of products against predetermined standards. (Acceptance sampling, moderate)
  1157. 106.    Why doesn't acceptance sampling remove all defects from a batch? Acceptance sampling is a method of measuring random samples of lots or batches of products against predetermined standards.  Acceptance sampling is not 100 percent inspection. Based on sampling results, the entire batch is either accepted or rejected. A batch may contain small numbers of defects and still meet the standard for acceptance. (Acceptance sampling, moderate)
  1158. 107.    What is the purpose of the Operating Characteristics curve? An OC curve plots the probability of acceptance against the percentage of defects in the lot. It therefore shows how well an acceptance sampling plan discriminates between good and bad lots. (Acceptance sampling, moderate)
  1159. 108.    What is the AOQ of an acceptance sampling plan? The AOQ is the average outgoing quality.  It is the percent defective in an average lot of goods inspected through an acceptance sampling plan.  (Acceptance sampling, moderate)
  1160. 109.    Define consumer's risk. How does it relate to the errors of hypothesis testing? What is the symbol for its value? The consumer's risk is the probability of accepting a bad lot. It is a Type II error; its value is beta. (Acceptance sampling, moderate)
  1161. 110.    What four elements determine the value of average outgoing quality? Why does this curve rise, peak, and fall? The four elements are the true percent defective of the lot, the probability of accepting the lot, the number of items in the lot, and the number of items in the sample. AOQ is near zero for very good output (which has few defects to find) and for very bad output (which often fails inspection and has its defects removed). AOQ has higher values for output of intermediate quality, for which the probability of rejection is not very high. (Acceptance sampling, moderate)
  1162. 111.    What do the terms producer's risk and consumer's risk mean?  Producer’s risk: the risk of rejecting a good lot; Consumer’s risk: the risk of accepting a defective lot (Acceptance sampling, moderate)
  1163. 112.    Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. In relatively plain English (someone else will translate for Pierre), explain exactly what he will do when performing the acceptance sampling procedure, and
  1164.  
  1165. Pierre should select samples of size 175 from his lots of air cleaners. He should count the number of defects in each sample. If there are 4 or fewer defects, the lot passes inspection. If there are 5 or more defects, the lot fails inspection. Lots that fail can be handled several ways: they can be 100% inspected to remove defects; they can be sold at a discount; they can be destroyed; they can be sent back for rework, etc. (Acceptance sampling, moderate) {AACSB: Analytic Skills}
  1166. 113.    Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. Pierre is a bit confused. He mistakenly thinks that acceptance sampling will reject all bad lots and accept all good lots. Explain why this will not happen.
  1167.  
  1168. Acceptance sampling cannot discriminate perfectly between good and bad lots; this is illustrated by the OC curve that is not straight up and down. In this example, "good" lots will still be rejected almost 5% of the time. "Bad" lots will still be accepted almost 5% of the time. (Acceptance sampling, moderate)
  1169. 114.    Pierre's Motorized Pirogues and Mudboats is setting up an acceptance sampling plan for the special air cleaners he manufactures for his boats. His specifications, and the resulting plan, are shown on the POM for Windows output below. Pierre wants acceptance sampling to remove ALL defects from his production of air cleaners. Explain carefully why this won't happen.
  1170.  
  1171. Acceptance sampling is not intended to remove all defects, nor will it. Consider a lot with a defect rate of 0.005 in this example. If the sample is representative, the lot will pass inspection--which means that no one will inspect the lot for defects. The defects that were present before sampling are still there. Generally, acceptance sampling passes some lots and rejects others. Defects can only be removed from those lots that fail inspection. (Acceptance sampling, moderate)
  1172. PROBLEMS
  1173. 115.    A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that the process standard deviation is two ounces. Each day last week, he randomly selected four packages and weighed each. The data from that activity appears below.
  1174. Day     Package 1       Weight Package 2 Package 3      Package 4
  1175. Monday Tuesday Wednesday Thursday Friday        23 23 20 18 18  22 2321 1919 2019 2020 22        24 21 21 19 20
  1176.  
  1177. 1.      (a) Calculate all sample means and the mean of all sample means.  
  1178. 2.      (b) Calculate upper and lower control limits that allow ± 2σ for natural variations.
  1179. 3.      (c) Is this process in control?
  1180.  
  1181. 1.      (a) The five sample means are 23, 21, 20, 19, and 20. The mean of all sample means is 20.6
  1182. 2.      (b) UCL = 20.6 + 2 ⋅ 2  4 = 22.6; LCL = 20.6 −2 ⋅ 2  4 = 18.6
  1183. 3.      (c) Sample 1 is above the UCL; all others are within limits. The process is out of control. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1184.  
  1185. 116.    A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that when the process is operating as intended, packaging weight is normally distributed with a mean of twenty ounces, and a process standard deviation of two ounces. Each day last week, he randomly selected four packages and weighed each. The data from that activity appears below.
  1186. Day     Package 1       Weight Package 2 Package 3      Package 4
  1187. Monday Tuesday Wednesday Thursday Friday        23 23 20 18 18  22 2321 1919 2019 2020 22        24 21 21 19 20
  1188.  
  1189. 1.      (a) If he sets an upper control limit of 21 and a lower control limit of 19 around the target value of twenty ounces, what is the probability of concluding that this process is out of control when it is actually in control?
  1190. 2.      (b) With the UCL and LCL of part a, what do you conclude about this process—is it in control?
  1191. 3.      (a) These control limits are one standard error away from the centerline, and thus include
  1192.  
  1193. 68.268 percent of the area under the normal distribution. There is therefore a 31.732 percent chance that, when the process is operating in control, a sample will indicate otherwise.
  1194. (b) The mean of sample 1 lies outside the control limits. All other points are on or within the
  1195. limits. The process is not in control. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1196. 117.    An operator trainee is attempting to monitor a filling process that has an overall average of 705 cc. The average range is 17 cc. If you use a sample size of 6, what are the upper and lower control limits for the X-bar and R chart?
  1197.         From table, A2 = 0.483, D4 = 2.004, D3 = 0
  1198. 118.    UCL x = x + A2 * R LCL x = x - A2 * R UCLR = D4 * R LCLR = D3 * R = 705 + 0.483 x 17 = 705 - 0.483 * 17 = 2.004 * 17 = 0 * 17 = 713.211 = 696.789 = 34.068 = 0 (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills} The defect rate for a product has historically been about 1.6%. What are the upper and lower control chart limits for a p-chart, if you wish to use a sample size of 100 and 3-sigma limits?
  1199.  
  1200.  UCLp = p + 3  p(1− p) = 0.016 + 3 .  (0.016 * 0.984) /100 = .0536
  1201. n
  1202. LCLp = p − 3  p(1− p) = 0.016 - 3 .  (0.016 * 0.984) /100 = -0.0216, or zero.
  1203. n
  1204. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1205. 119.    A small, independent amusement park collects data on the number of cars with out-of-state license plates. The sample size is fixed at n=25 each day. Data from the previous 10 days indicate the following number of out-of-state license plates:
  1206. Out-of-state
  1207. Day Plates
  1208. 1 6
  1209. 2 4
  1210. 3 5
  1211. 4 7
  1212. 5 8
  1213. 6 3
  1214. 7 4
  1215. 8 5
  1216. 9 3
  1217. 10 11
  1218.  
  1219. (a) Calculate the overall proportion of "tourists" (cars with out-of-state plates) and the standard deviation of proportions.
  1220. (b) Using ± 3σ limits, calculate the LCL and UCL for these data.
  1221. (c) Is the process under control? Explain.
  1222. (a) p-bar is 56/250 = 0.224; the standard deviation of proportions is the square root of .224 x .776 / 25 = 0.0834
  1223. (b) UCL = .224 + 3 x 0.834 = .4742; LCL = .224 -3 x .0834 which is negative, so the LCL = 0
  1224. (c) The largest percentage of tourists (day 10) is 11/25 = .44, which is still below the UCL. Thus, all the points are within the control limits, so the process is under control. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1225. 120.    Cartons of Plaster of Paris are supposed to weigh exactly 32 oz. Inspectors want to develop process control charts. They take ten samples of six boxes each and weigh them. Based on the following data, compute the lower and upper control limits and determine whether the process is in control.
  1226. Sample   Mean   Range
  1227. 1       33.8    1.1
  1228. 2       34.6    0.3
  1229. 3       34.7    0.4
  1230. 4       34.1    0.7
  1231. 5       34.2    0.3
  1232. 6       34.3    0.4
  1233. 7       33.9    0.5
  1234. 8       34.1    0.8
  1235. 9       34.2    0.4
  1236. 10      34.4    0.3
  1237.  
  1238. n = 6; overall mean = 34.23; R = 0.52.
  1239. Upper control limit     34.48116        1.04208
  1240. Center line     34.23   0.52
  1241. Lower control limit     33.97884        0
  1242.  
  1243.  
  1244. 1 2 3 4 5 6 7 8 910
  1245. Sample
  1246.  
  1247. The mean values for samples 1, 2, 3, and 7 fall outside the control limits on the X-bar chart and sample 1 falls outside the upper limit on the R-chart.  Therefore, the process is out of control. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1248. 121.    McDaniel Shipyards wants to develop control charts to assess the quality of its steel plate. They take ten sheets of 1" steel plate and compute the number of cosmetic flaws on each roll. Each sheet is 20' by 100'. Based on the following data, develop limits for the control chart, plot the control chart, and determine whether the process is in control.
  1249. Number of
  1250. Sheet   flaws
  1251. 1       1
  1252. 2       1
  1253. 3       2
  1254. 4       0
  1255. 5       1
  1256. 6       5
  1257. 7       0
  1258. 8       2
  1259. 9       0
  1260. 10       2
  1261. Total units sampled     10
  1262. Total defects   14
  1263. Defect rate, c-bar      1.4
  1264. Standard deviation      1.183216
  1265. z value         3
  1266. Upper Control Limit     4.949648
  1267. Center Line     1.4
  1268.  
  1269. Lower Control Limit 0
  1270.  
  1271. Sample six is above the control limits; therefore, the process is out of control. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1272.  
  1273. 122.    The mean and standard deviations for a process are x = 90 and σ = 9. For the variable control chart, a sample size of 16 will be used. Calculate the standard deviation of the sampling distribution. Sigma x-bar = 9 /   16 = 2.25
  1274. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1275. 123.    If x = 9 ounces, σ = 0.5 ounces, and n = 9, calculate the 3-sigma control limits.
  1276. 8.50 to 9.50 ounces
  1277. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1278.  
  1279. 124.    A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250). Among the last 100 bills inspected, the defect rate has been 16%. Calculate the upper and lower limits for the billing process for 99.7% confidence.
  1280. 0.16 plus or minus 3 x 0.03667, or .050 to 0.270
  1281. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1282.  
  1283. 125.    A local manufacturer supplies you with parts, and you would like to install a quality monitoring system at his factory for these parts. Historically, the defect rate for these parts has been 1.25 percent (You've observed this from your acceptance sampling procedures, which you would like to discontinue). Develop ± 3σ control limits for this process. Assume the sample size will be 200 items.
  1284. p-bar is 0.0125; the standard error of the proportion is
  1285. The upper control limit is 0.0125 + 3 x 0.00786 = 0.03608; the lower control limit is  
  1286. 0.0125 – 3 x 0.00786 which is negative, so the LCL is 0.
  1287. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1288.  
  1289. 126.    Repeated sampling of a certain process shows the average of all sample ranges to be 1.0 cm. The sample size has been constant at n = 5. What are the 3-sigma control limits for this R-chart?
  1290. zero to 2.115
  1291. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1292.  
  1293. 127.    A woodworker is concerned about the quality of the finished appearance of her work. In sampling units of a split-willow hand-woven basket, she has found the following number of finish defects in ten units sampled: 4, 0, 3, 1, 2, 0, 1, 2, 0, 2.
  1294. 1.      a. Calculate the average number of defects per basket
  1295. 2.      b. If 3-sigma control limits are used, calculate the lower control limit, centerline, and upper control limit.
  1296.  
  1297. (a) 1.5; (b) 0, 1.5, and 5.2.
  1298. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1299.  
  1300. 128.    The width of a bronze bar is intended to be one-eighth of an inch (0.125 inches). Inspection samples contain five bars each. The average range of these samples is 0.01 inches. What are the upper and lower control limits for the X-bar and R-chart for this process, using 3-sigma limits?
  1301. X-bar: LCL = .119; UCL =.131. R: LCL = 0.0; UCL =.021
  1302. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1303.  
  1304. 129.    A part that connects two levels should have a distance between the two holes of 4".  It has been determined that X-bar and R-charts should be set up to determine if the process is in statistical control. The following ten samples of size four were collected.  Calculate the control limits, plot the control charts, and determine if the process is in control.
  1305. Mean Range
  1306. Sample 1
  1307.  
  1308. 4.01 0.04
  1309. Sample 2
  1310.  
  1311. 1       0.06
  1312. Sample 3
  1313.  
  1314. 2       0.02
  1315. Sample 4
  1316.  
  1317.  
  1318. 1       0.05
  1319. Sample 5
  1320.  
  1321. 2       0.06
  1322. Sample 6
  1323.  
  1324.  
  1325. 1       0.02
  1326. Sample 7
  1327.  
  1328. 2       0.02
  1329. Sample 8
  1330.  
  1331.  
  1332. 3.99 0.04
  1333. Sample 9
  1334.  
  1335. 3.98 0.05
  1336. Sample 10
  1337.  
  1338. 4.01 0.06
  1339.  X-bar Range x-bar value 3.998  R bar 0.042  Upper control limit 4.029 0.096 Center line 3.998 0.042 Lower control limit 3.967 0
  1340.  
  1341. The process is out of control because of sample 5 on the X-bar chart.  (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1342. 130.    Ten samples of size four were taken from a process, and their weights measured.  The sample averages and sample ranges are in the following table.  Construct and plot an X-bar and R-chart using this data.  Is the process in control?
  1343.  Sample Mean Range
  1344. a.      1 20.01 0.45
  1345. b.      2 19.98 0.67
  1346. c.      3 20.25 0.30
  1347. d.      4 19.90 0.30
  1348. e.      5 20.35 0.36
  1349. f.      6 19.23 0.49
  1350. g.      7 20.01 0.53
  1351. h.      8 19.98 0.40
  1352. i.      9 20.56 0.95
  1353. 10 19.97 0.79
  1354.  
  1355.  
  1356.  X-bar Range x-bar value 20.024
  1357. R bar   0.524
  1358. Upper control limit 20.406 1.196 Center line 20.024 0.524 Lower control limit 19.642 0
  1359.  
  1360. The X-bar chart is out of control, and therefore the process is out of control, because samples 6 and 9 are outside of the control limits. (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1361. 131.    Larry's boat shop wants to monitor the number of blemishes in the paint of each boat.  Construct a c-chart to determine if their paint process is in control using the following data.
  1362. Sample Number Number of
  1363.  Defects
  1364. 1 3
  1365. 2 4
  1366. 3 2
  1367. 4 1
  1368. 5 3
  1369. 6 2
  1370. 7 1
  1371. 8 4
  1372. 9 2
  1373.  
  1374. 10      3
  1375. Total units sampled 10
  1376. Total defects 25
  1377. Defect rate, c-bar 2.5
  1378. Standard deviation 1.581
  1379. z value 3
  1380.  
  1381. Upper Control Limit 7.243
  1382. Center Line 2.5
  1383. Lower Control Limit 0
  1384.  
  1385.  
  1386. The process is in control.  (Statistical Process Control (SPC), moderate) {AACSB: Analytic Skills}
  1387. 132.    The specifications for a manifold gasket that installs between two engine parts calls for a thickness of 2.500 mm + .020 mm. The standard deviation of the process is estimated to be 0.004 mm. What are the upper and lower specification limits for this product? The process is currently operating at a mean thickness of 2.50 mm. (a) What is the Cp for this process? (b) About what percent of all units of this liner will meet specifications? Does this meet the technical definition of Six Sigma?
  1388. (a) LSL = 2.48 mm, USL = 2.52 mm. Cp = (2.52 – 2.48)/(6*0.004) = 1.67.  (b) Each specification limit lies 5 standard deviations from the centerline, so practically 100 percent of units will meet specifications. However, this percentage is not quite as high as Six Sigma would call for. (Process capability, moderate) {AACSB: Analytic Skills}
  1389. 133.    The specifications for a manifold gasket that installs between two engine parts calls for a thickness of 2.500 mm + .020 mm. The standard deviation of the process is estimated to be 0.004 mm. What are the upper and lower specification limits for this product? The process is currently operating at a mean thickness of 2.50 mm. (a) What is the Cp for this process?  (b) The purchaser of these parts requires a capability index of 1.50. Is this process capable? Is this process good enough for the supplier? (c) If the process mean were to drift from its setting of 2.500 mm to a new mean of 2.497, would the process still be good enough for the supplier's needs?
  1390. (a) LSL = 2.48 mm, USL = 2.52 mm. Cp = (2.52 – 2.48)/(6*0.004) = 1.67.  (b) Yes to both parts of the question. (c) The Cpk index is now relevant, and its value is the lesser of 1.917 and 1.417. The process is still capable, but not to the supplier's needs. (Process capability, moderate) {AACSB: Analytic Skills}
  1391. 134.    The specification for a plastic liner for concrete highway projects calls for a thickness of 6.0 mm ±
  1392. 0.1 mm. The standard deviation of the process is estimated to be 0.02 mm. What are the upper and lower specification limits for this product? The process is known to operate at a mean thickness of
  1393. 6.03 mm. What is the Cp and Cpk for this process? About what percent of all units of this liner will meet specifications? LSL = 5.9 mm, USL = 6.1 mm. Cp  is (6.1-5.9)/6(.02) = 1.67.  Cpk is the lesser of (6.1¬6.03)/(3*0.02) = 1.17 and (5.9 - 6.03)/(3*0.02) = 2.17; therefore, 1.17.  The upper specification limit lies about 3 standard deviations from the centerline, and the lower specification limit is further away, so practically all units will meet specifications. (Process capability, moderate) {AACSB: Analytic Skills}
  1394. 135.    The specification for a plastic handle calls for a length of 6.0 inches ± .2 inches. The standard deviation of the process is estimated to be 0.05 inches. What are the upper and lower specification limits for this product? The process is known to operate at a mean thickness of 6.1 inches. What is the Cp and Cpk for this process?   Is this process capable of producing the desired part? LSL = 5.8 inches, USL = 6.2 inches. Cp  is (6.2-5.8)/6(.05) = 1.33. Cpk is the lesser of (6.2¬6.1)/(3*0.05) = .67 and (5.8 - 6.1)/(3*0.02) = 2.00; therefore, .67. The process is capable based upon the Cp. However, the process is not centered (based upon its Cpk) and based upon its current center is not producing parts that are of an acceptable quality. (Process capability, moderate) {AACSB: Analytic Skills}
  1395. 136.    In the table below are selected values for the OC curve for the acceptance sampling plan n=210, c=6. Upon failed inspection, defective items are replaced. Calculate the AOQ for each data point. (You may assume that the population is much larger than the sample.) Plot the AOQ curve. At approximately what population defective rate is the AOQ at its worst? Explain how this happens. How well does this plan meet the specifications of AQL=0.015, α =0.05; LTPD=0.05, β =0.10? Discuss.
  1396. Population percent defective    Probability of acceptance
  1397. 0.00     1.00000
  1398. 0.01     0.99408
  1399. 0.02     0.86650
  1400. 0.03     0.55623
  1401. 0.04     0.26516
  1402. 0.05     0.10056
  1403. 0.06     0.03217
  1404. 0.07     0.00905
  1405. 0.08     0.00231
  1406. 0.09     0.00054
  1407. 0.10     0.00012
  1408.  
  1409. The plan meets the α and the β specification fairly well.
  1410. Population percent defective    Probability of acceptance       AOQ    
  1411. 0.00     1.000  0.0000  
  1412. 0.01     0.994  0.0099  
  1413. 0.015    0.958  0.0144  At AQL
  1414. 0.02     0.867  0.0173  maximum
  1415. 0.03     0.558  0.0167  
  1416. 0.04     0.267  0.0107  
  1417. 0.05     0.102  0.0051  At LTPD
  1418. 0.06     0.033  0.0020  
  1419. 0.07     0.009  0.0006  
  1420. 0.08     0.002  0.0002  
  1421. 0.09     0.001  0.0001  
  1422.  
  1423.  
  1424. (Acceptance sampling, moderate) {AACSB: Analytic Skills}
  1425. 137.    In the table below are selected values for the OC curve associated with the acceptance sampling plan n=50, c=1. (Watch out--the points are not evenly spaced.) Assume that upon failed inspection, defective items are replaced. Calculate the AOQ for each data point. (You may assume that the population is much larger than the sample.) Plot the AOQ curve. At approximately what population defective rate is the AOQ at its worst? Explain how this happens. How well does this plan meet the specifications of AQL=0.0050, α =0.05; LTPD=0.05, •β =0.10? Discuss.
  1426. Population percent defective    Probability of acceptance
  1427.  0.005  0.97387
  1428.  0.01   0.91056
  1429.  0.02   0.73577
  1430.  0.03   0.55528
  1431.  0.04   0.40048
  1432.  0.05   0.27943
  1433.  0.06   0.19000
  1434.  0.08   0.08271
  1435.  
  1436. This plan does not meet the specification very well. At .005 defective, the probability of
  1437.  
  1438. Population percent defective    Probability of acceptance       AOQ    
  1439.  0.005  0.97387         0.004869        at AQL
  1440.  0.01   0.91056         0.009106       
  1441.  0.02   0.73577         0.014715       
  1442.  0.03   0.55528         0.016658        maximum
  1443.  0.04   0.40048         0.016019       
  1444.  0.05   0.27943         0.013972        at LTPD
  1445.  0.06   0.19000         0.0114 
  1446.  0.08   0.08271         0.006617        
  1447.  
  1448. (Acceptance sampling, moderate) {AACSB: Analytic Skills}
  1449. 138.    A bank’s manager has videotaped 20 different teller transactions to observe the number of mistakes being made.  Ten transactions had no mistakes, five had one mistake and five had two mistakes.  Compute proper control limits at the 90% confidence level.  
  1450. A c-chart should be used, and from Table S6.2, the z-value = 1.65.
  1451.  The mean c-bar = [10(0) + 5(1) + 5(2)]/20 = 0.75.
  1452.  UCLc = 0.75 +1.65   0.75 = 2.18.
  1453. LCLc = 0.75 −1.65   0.75 =−0.68 (or 0).
  1454. (Statistical process control (SPC), moderate) {AACSB: Analytic Skills}
  1455.  
  1456. 139.    A department chair wants to monitor the percentage of failing students in classes in her department.  Each class had an enrollment of 50 students last spring.  The number of failing students in the 10 classes offered that term were 1, 4, 2, 0, 0, 0, 0, 0, 0, and 3, respectively.  Compute the control limits for a p-chart at the 95% confidence level. Is the process in control?
  1457. From Table S6.2, the z-value = 1.96.
  1458.  The mean p-bar = [1+4+2+0+0+0+0+0+0+3]/(50×10) = 0.02.
  1459.  
  1460.  
  1461.  UCLp = 0.02 + 1.96(.0198) = 0.0589.
  1462.  LCLp = 0.02 − 1.96(.0198) = −0.0189 (or 0).  
  1463. Since the percent defects in classes 2 and 10 both exceeded 5.89%, the percentage of failing
  1464. students is not in statistical control.  The department chair should investigate.  
  1465. (Statistical process control (SPC), moderate) {AACSB: Analytic Skills}
  1466.  
  1467.  
  1468.  
  1469.