MGT 3666 Final

Which is the correct formula for the total cost in the EPQ model? A) (D/Q)S B) √2DSH2DSH√pp−upp-u C) (Q/2)H + (D/Q)S D) (Imax/2)H + (D/Q)S E) (Imax/2)H

(Imax/2)H

Which is the correct formula for the maximum inventory in the EPQ model? A) √2DSH2DSH√pp−upp-u B) (Imax/2)H C) (Q/2)H + (D/Q)S D) (Imax/2)H + (D/Q)S E) (Qp/p)(p-u) F) Imax/2

(Qp/p)(p-u)

Which of the following statements about inspection frequency are correct? - A stable process will require less frequent checks than an unstable process - The goal of inspection is to maximize the cost of passing defectives and performing inspection - Operations with high ratio of human-to-machine labor require less inspection - The more lost being produced the more inspections are needed

- A stable process will require less frequent checks than an unstable process - The more lost being produced the more inspections are needed

Which of the following statements are correct about Inspection? - Only lots with zero percent defects can pass inspection - Inspection involves checking for conformance against a quality standard - Inspection can occur before, during or after production - Lean organizations tend to rely heavily on inspection

- Inspection involves checking for conformance against a quality standard - Inspection can occur before, during or after production

What are the four basic issues of quality control inspection? - How many inspectors to hire and what training they should receive - Where should inspection take place--on or off site - What type of data to collect--count or measure - At what stage of the process inspection should occur

- Where should inspection take place--on or off site - At what stage of the process inspection should occur - What type of data to collect--count or measure

Which of the following statements about exponential smoothing forecasts is/are true? -It is a sophisticated weighted averaging method -The smoothing constant α is always 0.1. -The previous forecast is adjusted by a percentage of the forecasting error. -The closer α is to 1, the greater the smoothing.

-It is a sophisticated weighted averaging method -The previous forecast is adjusted by a percentage of the forecasting error.

Which of the following statements is/are true about trend-adjusted exponential smoothing? -Unlike with trend analysis, the trend estimate can be adjusted if it changes. -Its ease of calculation makes it preferable to trend analysis. -It should be used instead of simple exponential smoothing when there is a trend present in the data. -Values for α and β are known for a specific problem, and the forecast is started off just like simple exponential smoothing.

-Unlike with trend analysis, the trend estimate can be adjusted if it changes. -It should be used instead of simple exponential smoothing when there is a trend present in the data

Which of the following statements are true about starting exponential smoothing forecasts? -Use a naive forecast for F2 to start off the forecast series. -To forecast for period t, pick an arbitrary value for Ft-1. -Use an average of several values to start off the initial forecast for the forecast series.

-Use an average of several values to start off the initial forecast for the forecast series. -Use a naive forecast for F2 to start off the forecast series.

Flowchart

A diagram of the steps in a process.

Cause-and-effect diagram

A diagram used to search for the cause(s) of a problem; also called fishbone diagram.

Scatter diagram

A graph that shows the degree and direction of relationship between two variables.

Control chart

A statistical chart of time-ordered values of a sample statistic.

JIT II

A supplier representative works right in the company's plant, making sure the quality and supply of the items are appropriately supplied

Failure costs

Costs caused by defective parts or products or by faulty services

Appraisal Costs

Costs of activities designed to ensure quality or uncover defects.

Prevention costs

Costs of preventing defects from occurring.

Exponential Smoothing Forecast Formula

F(t)=F(t-1) + (A(t-1) - F(t-1))

Which is the correct formula for the average inventory in the EPQ model? A) (Imax/2)H B) √2DSH2DSH√pp−upp-u C) (Q/2)H + (D/Q)S D) (Qp/p)(p-u) E) (Imax/2)H + (D/Q)S F) Imax/2

Imax/2

Which statement is true for the economic production quantity (EPQ) model? A) Like EOQ, all orders are received in a single delivery. B) It is used only in job shops. C) It is used when production occurs in batches.

It is used when production occurs in batches.

JIT

Just in Time. A system that eliminates work-in-process (WIP) inventory by scheduling arrival of parts and assemblies for an operation at the time they are needed and not before.

Which of the following is the correct formula for the trend-adjusted exponential smoothing forecast? TAFt+1=St-Tt TAFt+1=St+Tt TAFt+1=St+1+Tt+1

TAFt+1=St+Tt

Pareto Analysis

Technique for classifying problem areas according to degree of importance, and focusing on the most important.

Select all that apply Which of the following statements about the economic production quantity is/are not true? A) The assumptions are the same as in the EOQ model. B) Unlike the EOQ model, there are no ordering costs. C) The maximum inventory level is the same as the EPQ. D) Inventory "trickles in" as it is produced.

The assumptions are the same as in the EOQ model. The maximum inventory level is the same as the EPQ.

Run chart

Tool for tracking results over a period of time.

Histogram

a bar graph depicting a frequency distribution

R chart

a chart used to monitor process variability

Check Sheet

a tool for recording and organizing data to identify a problem

During the quality control efforts when output is determined to be unacceptable, what next step necessarily occurs? - Kaizen - Re-design of product - Form a team to discuss options - Analyze and correct

analyze and correct

Dimensions of Quality

categories, or dimensions, that customers use to judge the quality of a product or service.

c-chart

control chart for attributes, used to monitor the number of defects per unit

P-chart

control chart for attributes, used to monitor the proportion of defective items in a process

External Failures

failures discovered after delivery to the customer

Internal failures

failures discovered during production

Exponential smoothing adds a percentage (called alpha) of the last period's forecast to estimate the next period's demand TF

false, previous forecast plus a percentage of the forecast error

In the economic production quantity (EPQ) model, the larger the production run size, the ______ the number of runs needed per year, and the _______ the annual setup cost. A) fewer; lower B) more; lower C) more; higher D) fewer; higher

fewer;lower

x-bar

mean of a sample

In the economic production quantity (EPQ) model, ______ costs are analogous to ordering costs. A) total B) setup C) carrying

setup

the dimensions of both product and service quality establish a conceptual framework for thinking about quality, but even they are too abstract to be applied operationally for purposes of product or service design, or actually producing a product or delivering a service. They must be stated in terms of what ?

specific, measurable characteristics