MGMT 3020 exam 2

3) General-purpose hospital uses which focus? A) process B) repetitive C) product D) mass customization E) A and D

A

5) 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? A) 3.4 B) 6.0 C) 34 D) 2700 E) 6 times the monthly standard deviation of passengers

A

A hospital benchmarked against a Ferrari Racing team in an effort to: A) improve patient handoff quality. B) increase surgery prep time. C) lengthen surgery duration. D) reduce the number of doctors. E) all of the above

A

The goal of inspection is to: A) detect a bad process immediately. B) add value to a product or service. C) correct deficiencies in products. D) correct system deficiencies. E) all of the above

A

red top cab company receives multiple complains per day about 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? A. 13.35 B. 8.45 C. 24.0 D. 0

A

"Quality lies in the eyes of the beholder" is: A) an unrealistic definition of quality. B) a user-based definition of quality. C) a manufacturing-based definition of quality. D) a product-based definition of quality. E) the definition of quality proposed by the American Society for Quality.

B

2) Which one of the following products is most likely made in a job shop environment? A) rolls of newsprint B) customized furniture C) television sets D) cigarettes E) canned vegetables

B

5) 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?

B

6) Which production technology uses camera- and computer-based vision systems to replace humans doing tedious and error-prone visual inspection activities? A) 3-D printing B) Vision system C) ASRS D) FMS E) CIM

B

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: A) Taguchi analysis. B) Pareto analysis. C) benchmarking. D) Deming analysis. E) Yamaguchi analysis.

B

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. A) Subcompact B) Compact C) Full-size

B

The first step, and a key element, in the decision-making process is to: A) consult a specialist. B) clearly define the problem. C) develop objectives. D) monitor the results. E) select the best alternative.

B

a manager wants to built 3-sigma x-bar control for the process. the target value for the mean of the process is 10 units, and the standard deviation of the processes is 6, if the samples of size 9 are to be taken, what will be the upper and lower control limits, respectively? A. -8 and 28 B, 16 and 4 C. 12 and 8 D. 4 and 18

B

1) A product-focused process is commonly used to produce: A) high-volume, high-variety products. B) low-volume, high-variety products. C) high-volume, low-variety products. D) low-variety products at either high- or low-volume. E) high-volume products of either high- or low-variety.

C

4) 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?

C

A decision maker using the maximin criterion on the problem below would choose Alternative ________ because the maximum of the row minimums is ________. states of nature 1 2 3 Alternative A 50 55 60 Alternative B 30 50 80 Alternative C 70 80 70 Alternative D -100 -10 140 A) A; 55 B) B; 30 C) C; 70 D) D; 140 E) D; 10

C

In terms of decision theory, an occurrence or situation over which the decision maker has no control is called a(n): A) decision under uncertainty. B) decision tree. C) state of nature. D) alternative. E) EMV.

C

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? A. p-chart B. c-chart C. both x-bar chart and an R-chart D. both a p-chart and a c-chart

C

PDCA is most often applied with regard to which aspect of TQM? A) Six Sigma B) employee empowerment C) continuous improvement D) benchmarking E) JIT

C

The central limit theorem A. is the t heretical foundation of the c-chart B. states that the average of assignable variation is zero C. allows managers to use the normal distribution as the basis for building some control charts D. states that the average range an be used as a proxy for the standard deviation

C

The number of late insurance claim payouts per 100 should be measure with what type of control chart? A. x-bar chart B. R-chart C. p-chart D. c-chart

C

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: A) continuous improvement. B) employee empowerment. C) benchmarking. D) copycatting. E) patent infringement.

C

The upper and lower limits for driving 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? A. yes, no diameters exceed the control limits B. no, some diameters exceeded the control limits C. no, there is a distinguishable patter to the samples D. no, the range is not in control

C

What decision criterion would be used by an optimistic decision maker solving a problem under conditions of uncertainty? A) expected monetary value B) equally likely C) maximax D) maximin E) minimin

C

What is the difference between the expected payoff under perfect information and the maximum expected payoff under risk? A) expected monetary value B) economic order quantity C) expected value of perfect information D) PERT E) expected monetary payoff

C

the purpose of an x-bar chart is to determine whether there has been a: A. change in the dispersion of the process output B. change in the percent defective in a sample C. change in the central tendency of the process output D. change in the number of the defects in a sample

C

6) 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

D

7) Which of the following technologies could enable a cashier to scan the entire contents of a shopping cart in seconds? A) ASRS B) AGV C) CAD/CAM D) RFID E) FMS

D

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

D

The number of defects after a hotel room cleaning (sheets not straight, smears on a mirror, misses debris, on carpet, etc) should be measure using what type of control chart? A. x-bar chart B. R-chart C. p-chart D. c-chart

D

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? A) $50,000 B) $25,000 C) $28,333.33 D) $21,666.67 E) $65,000

D

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.

D

a run test is used: A. to examine variability in acceptance sampling plans B. in acceptance sampling o 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

D

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 patter to the points B. not yet, the R-chart must be checked C. not yet, the number of samples must be known D. both A and B

D

8) 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

E

Expected monetary value is most appropriate for problem solving that takes place: A) when conditions are average. B) when all states of nature are equally likely. C) when all alternatives are equally likely. D) under conditions of uncertainty. E) under conditions of risk.

E