Homework

clearly define the problem

The first step, and a key element, in the decision-making process is to

detect a bad process immediately

The goal of inspection is to

all of the above

Process redesign: A) is the fundamental rethinking of business processes. B) is sometimes called process reengineering. C) tries to bring about dramatic improvements in performance. D) often focuses on activities that cross functional lines. E) all of the above

13.35

Red Top Cab Company receives multiple complaints per day about driver behavior. Over nine days, the owner recorded the number of calls to be 3, 0, 8, 9, 6, 7, 4, 9, and 8. What is the upper control limit for the 3-sigma c-chart?

c-chart

The number of defects after a hotel room cleaning (sheets not straight, smears on mirror, missed debris on carpet, etc.) should be measured using what type of control chart?

p-chart

The number of late insurance claim payouts per 100 should be measured with what type of control chart?

benchmarking

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:

change in the central tendency of the process output.

The purpose of an x-bar chart is to determine whether there has been a:

No, there is a distinguishable pattern to the samples.

The upper and lower limits for diving ring diameters made by John's Swimming Co. are 40 and 39 cm., respectively. John took 11 samples with the following average diameters (39, 39.1, 39.2, 39.3, 39.4, 39.5 39.6, 39.7, 39.8, 39.9, 40). Is the process in control?

maximax

What decision criterion would be used by an optimistic decision maker solving a problem under conditions of uncertainty?

expected value of perfect information

What is the difference between the expected payoff under perfect information and the maximum expected payoff under risk?

RFID

Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds?

external failure costs

Which of the four major categories of quality costs is particularly hard to quantify? A) prevention costs B) appraisal costs C) internal failure costs D) external failure costs E) None is hard to quantify.

customized furniture

Which one of the following products is most likely made in a job shop environment?

vision system

Which production technology uses camera- and computer-based vision systems to replace humans doing tedious and error-prone visual inspection activities?

user-based definition of quality.

"Quality lies in the eyes of the beholder" is

improve patient handoff quality

A hospital benchmarked against a Ferrari Racing team in an effort to:

16 and 4

A manager wants to build 3-sigma x-bar 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, what will be the upper and lower control limits, respectively?

high-volume, low-variety products.

A product-focused process is commonly used to produce:

pareto

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. The process improvement technique that sorts the vital few from the trivial many is:

to examine points in a control chart to check for nonrandom variability.

A run test is used: A) to examine variability in acceptance sampling plans. B) in acceptance sampling to establish control. C) to examine points in a control chart to check for natural variability. D) to examine points in a control chart to check for nonrandom variability. E) to test the validity of the central limit theorem. Answer: D

centralized decision-making authority

A successful TQM program incorporates all EXCEPT which of the following? A) continuous improvement B) employee involvement C) benchmarking D) centralized decision-making authority E) six sigma

E

An x-bar control chart was examined and no data points fell outside of the limits. Can this process be considered in control? A) Not yet, there could be a pattern to the points. B) Not yet, the R-chart must be checked. C) Not yet, the number of samples must be known. D) Yes. E) Both A and B

50V = 1000 + 5V, V (cross-over point) = 22.2 computers

Brandon's computer shop is considering two different configuration options. The first one is to have each computer built by a sales associate when he or she has free time. The second option is to hire a dedicated assembly technician. Option A has variable costs of $50 per computer and no fixed costs. Option B has a fixed cost of $1,000 but variable costs of only $5 per computer. What is the cross-over point?

under conditions of risk

Expected monetary value is most appropriate for problem solving that takes place:

cost of poor quality is underestimated

GE's recall of 3.1 million dishwashers cost the company more in repairs than the value of the actual dishwashers. This is an example of which quality principle? A) PDCA B) internal failure costs C) appraisal costs D) cost of poor quality is underestimated E) prevention costs

process

General-purpose hospital uses which focus?

3.4

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?

state of nature

In terms of decision theory, an occurrence or situation over which the decision maker has no control is called a(n):

both an x-bar chart and an R-chart

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?

Option B

Karla's candle factory is considering two different manufacturing options. Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle. Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle. If demand for Karla's candles is 25,000, which option should she pick?

Compact

Miles is considering buying a new pickup truck for his lawn service firm. The economy in town seems to be growing, and he is wondering whether he should opt for a subcompact, compact, or full-size pickup truck. The smaller truck would have better fuel economy, but would sacrifice capacity and some durability. A friend at the Bureau of Economic Research told him that there is a 30% chance of lower gas prices in his area this year, a 20% chance of higher gas prices, and a 50% chance that gas prices will stay roughly unchanged. Based on this information, Miles has developed a decision table that indicates the profit amount he would end up with after a year for each combination of truck and gas prices. Develop a decision tree for this situation and indicate which type of truck he should select.

continuous improvement

PDCA is most often applied with regard to which aspect of TQM?

21,166.67

There are three equally likely states of nature (high, medium, and low demand). If the large factory will post profits of $50,000, $25,000, and -$10,000 under these states of nature, respectively, what is the EMV of the factory?

Central Limit Theorem

allows managers to use the normal distribution as the basis for building some control charts.