Operations Management Quiz #3

Operations Management Quiz #3. Operations Management Quiz 3

Question 1 (1 point)

People often evaluate the quality of a service on the basis of psychological impressions.

Question 1 options:

	True
	False

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Question 2 (1 point)

Regarding control charts, changing from three-sigma limits to two-sigma limits:

Question 2 options:

	increases the probability of concluding nothing has changed, when in fact it has.
	increases the probability of searching for a cause when none exists.
	decreases the probability that the process average will change.
	decreases the probability that defects will be generated by the process.

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Question 3 (1 point)

One of the main challenges in developing the proper culture for TQM is to:

Question 3 options:

	define customer for each employee.
	suspend reward systems based on quantity.
	institute an equitable employee recognition program.
	get buy-in from the customer.

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Question 4 (1 point)

One chart commonly used for quality measures based on product or service attributes is the chart.

Question 4 options:

	True
	False

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Question 5 (1 point)

When a process fails to satisfy a customer:

Question 5 options:

	it is quite often the customer’s fault.
	it is considered a defect
	it is time to reengineer the process.
	it is usually half the customer’s fault and half the company’s fault.

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Question 6 (1 point)

The UCL and LCL for an chart are 25 and 15 respectively. The central line is 20, and the process variability is considered to be in statistical control. The results of the next six sample means are 18, 23, 17, 21, 24, and 16. What should you do?

Question 6 options:

	Nothing; the process is in control.
	Explore the assignable causes because the second, fourth, and fifth samples are above the mean.
	Explore the assignable causes because there is a run.
	Explore the assignable causes because there is a trend.

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Question 7 (1 point)

Which of the following can be used to eliminate “common” causes of variation?

Question 7 options:

	statistical process control
	acceptance sampling
	traditional statistical techniques
	they cannot be eliminated.

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Question 8 (1 point)

Increasing the quality level by better products and processes may:

Question 8 options:

	allow a company to raise the price of the product.
	move a company closer to a competitive priority of price.
	reduce prevention costs.
	ensure that the trade-off between prevention costs and other costs of poor quality is worthwhile.

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Question 9 (1 point)

Which of the following statements relating to total quality management and Six Sigma is true?

Question 9 options:

	The only effect of internal failure is loss of material.
	Poor quality generally does not increase the inventory level or lead times.
	To produce 100 good units in a process with a 20 percent defective rate, the company must produce a total of 120 units.
	High product quality in manufacturing can have significant market implications for a firm.

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Question 10 (1 point)

An example of a type I error would be:

Question 10 options:

	throwing away a perfectly good banana.
	counting a student’s multiple choice response correct when it is actually incorrect.
	releasing a guilty defendant.
	counting a student’s multiple choice response correct when it is actually correct.

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Question 11 (1 point)

The notion of internal customers applies to all parts of a firm.

Question 11 options:

	True
	False

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Question 12 (1 point)

Which one of the following is considered to be an appraisal cost?

Question 12 options:

	cost of quality audits
	cost of supplier programs
	cost of rework
	cost of process design

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Question 13 (1 point)

What is one reason that Six Sigma is more difficult to apply to service processes?

Question 13 options:

	There is no manual that suggests how Six Sigma can be applied to services.
	The work product is more difficult to see.
	There is no way to measure process capability of a service product.
	The National Six Sigma Society cautions against using it for services.

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Question 14 (1 point)

On a control chart, a type I error occurs when the employee concludes that the process is in control when it is actually out of statistical control.

Question 14 options:

	True
	False

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Question 15 (1 point)

“Quality at the source” implies:

Question 15 options:

	less expensive raw materials.
	lower scrap.
	higher rework costs.
	more final-test inspectors.

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Question 16 (1 point)

A professor, dissatisfied with a product he’s purchased, bad mouths the product to his class, resulting in decreased market share (since the students believe everything he tells them). The manufacturer suffers:

Question 16 options:

	an internal failure cost.
	an external failure cost.
	a prevention cost.
	an appraisal cost.

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Question 17 (1 point)

The investment a company makes in training employees to perform their duties and redesigning products and processes to improve them would be categorized as prevention costs.

Question 17 options:

	True
	False

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Question 18 (2 points)

Table 5.1 Factors for Calculating Three-Sigma Limits for the Chart and R-ChartSource: 1950 ASTM Manual on Quality Control of Materials, copyright American Society for Testing Materials. Reprinted with permission. Historically, the average diameter of the holes drilled has been 0.25 cm and the average range has been 0.1 cm. Determine the central line and upper and lower control limits for an and an R-chart, assuming samples of size 8 will be taken. Use Table 5.1. For the R-chart, what is the value of the LCLR?

Question 18 options:

	less than or equal to 0.010
	greater than 0.010 but less than or equal to 0.020
	greater than 0.020 but less than or equal to 0.030
	greater than 0.030

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Question 19 (2 points)

Historically, the average time to service a customer complaint has been 3 days and the standard deviation has been 0.50 day. Management would like to specify the control limits for an chart with a sample size of 10- and 3- sigma limits. The LCL for the chart would be:

Question 19 options:

	less than 2.40.
	greater than 2.40 but less than or equal to 2.45.
	greater than 2.45 but less than or equal to 2.50.
	greater than 2.50.

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Question 20 (2 points)

Table 5.2 Using Table 5.2, for the R-chart, what is the value of LCLR?

Question 20 options:

	less than or equal to 0.01
	greater than 0.01 but less than or equal to 0.02
	greater than 0.02 but less than or equal to 0.03
	greater than 0.03

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Question 21 (10 points)

Why are the number of recalls increasing, even though product quality is also seemingly increasing?

Question 21 options:

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Operations Management Quiz #3