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Exam coverage:
Final exam is not cumulative of Test 1 and Test 2 materials.
Coverage based on the lecture notes, not the textbook.
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Exam structure:
Final exam is worth 30% of your course grade
Final exam = total 60 marks
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A. Computational
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Rounding Reminder
a) As part of its TQM program, Northern has started tracking the delivery time for some of its orders.
The following table shows seven samples of randomly selected orders. Northern at this point claims
that it only cares about whether or not the order is delivered on time. Construct an appropriate
control chart(s) to monitor FPS delivery quality using 3 sigma limits. Show clearly on the graph the
values for the center line, UCL and LCL. Is the process in control? Justify your answer briefly.
Sample
Delivery time (in days)
1
2
4
3
4
3
2
3
1
2
3
3
4
4
1
1
2
6
3
4
3
4
6
2
5
4
2
4
1
1
5
3
4
5
3
2
5
4
4
1
4
4
4
5
4
6
4
4
4
2
4
5
3
4
7
1
2
4
3
5
4
5
3
b) The table below shows two additional samples. Should you be concerned about the delivery
process? Justify your answer based on the chart(s) you already constructed in part a).
Sample
Delivery time (in days)
8
6
3
3
3
5
3
1
2
9
6
4
4
3
5
4
5
4
c) Is the control chart(s) constructed in part a) a good choice of monitoring delivery quality? Justify
your answer briefly.
2. The North Country Clothing Company (NCCC) is a mail-order company that processes thousands of
mail and telephone orders each week. They have a customer service number to handle customer order
problems and monitor the number of complaints. The total number of complaint calls the customer
service department has received for each of the last 30 weeks are shown below. The average number of
complaints has been 24 in the past year. Construct an appropriate control chart(s) to monitor customer
service quality using 3 sigma limits. Show clearly on the graph the values for the center line, UCL and
LCL. Is the process in control? Justify your answer briefly.
3
Week
1
2
3
4
5
6
7
8
9
10
No. of Complaints
27
15
36
28
19
23
21
16
29
35
Week
11
12
13
14
15
16
17
18
19
20
No. of Complaints
26
30
33
35
25
19
12
17
18
26
Week
21
22
23
24
25
26
27
28
29
30
No. of Complaints
31
14
18
26
27
30
20
12
16
20
3. A call centre monitors the number of customer calls that can be classified as complaints. A part of SPC
chart that keeps track of the number of complaints is shown below. The sample average is 3.7, UCL is
9.5 and LCL is 0. Suggest any corrective actions as you see fit.
10
9
8
7
6
5
4
3
2
1
0
1
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B. Multiple Choice
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14) A manager of a caf hears complaints here and there from the customers about the new line of cheese
cakes, but is not quite sure whats going on. Which process improvement tool could help the manager
identify possible quality problems?
a. x-bar-chart
b. Check sheet
c. Scatter diagram
d. Fishbone diagram
15) Compared to the sigma limit of 3, having the sigma limit of 2 in SPC would more likely lead to
a. reduction of the size of abnormal variations
b. a conclusion that the process is in control when it is not
c. a conclusion that the process capability cannot meet design specifications
d. a conclusion that the process is out of control when it is not
16) Highly-skilled hourly workers would be most needed in
a. batch production
b. continuous production
c. mass production
d. automated production
17) A company with a pure continuous processing system is most likely to use which layout type?
a. Hybrid layout
b. Process layout
c. Product layout
d. Fixed position
18) A manufacturing company has a weekly product rate of 1700 units. The average percentage of goodquality products is 83%. Of the poor-quality products, 60% can be reworked and sold as good-quality
products. What is the weekly product yield?
a. 1445
b. 2465
c. 1020
d. 1584
19) The philosophy of zero defects is
a. consistent with the commitment to continuous improvement
b. prohibitively costly
c. unrealistic
d. impossible
20) Which of the following is an advantage of specialization in job design?
a. High turnover rates
b. Minimal training needs
c. Intrinsic satisfaction of employees
d. Increased opportunity for advancement of employees
21) Which of the following statements regarding a pull system is true?
a. Large lots are pulled from form upstream.
b. Each workstation requests items from previous workstation when needed.
c. Each workstation produces according to a schedule.
d. Work is pulled to the downstream station before it is needed.
22) For which of the following would a control chart for attributes not be appropriate?
a. Number of rotten apples
b. Proportion of broken eggs in a carton
c. Number of customer complaints
d. Length of metal rods being produced
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C. Short Answers
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Recommended steps for how to prepare for short answer questions in Final Exam:
Solutions
A1. Textbook Computational Problems
SPC, #3
SPC, #5
SPC, #6
SPC, #7
SPC, #8
SPC, #9
1. a) Northern only cares about whether or not the order is delivered on time
defective vs. non-defective
We can count the number of non-defective delivery time; a sample is not one item, it consists of
8 delivery time observations construct a p-chart
Sample
1
2
3
4
5
6
7
2
3
4
1
4
4
1
4
3
3
1
4
4
2
3
2
4
3
5
3
5
p = % defects
2/8 = 0.250
3/8 = 0.375
5/8 = 0.625
3/8 = 0.375
7/8 = 0.875
6/8 = 0.750
4/8 = 0.500
1
6
2
2
4
4
3
Center line = (0.25 + 0.375 + 0.625 + 0.375 + 0.875 + 0.75 + 0.5)/7 = 0.536
UCL = pavg + z[pavg(1 pavg)/n]1/2 = 0.536 + (3)[(0.536)(0.464)/8]1/2 = 0.536 + 0.529 = 1.065
LCL = pavg z[pavg(1 pavg)/n]1/2 = 0.536 0.529 = 0.007
1.2
1
0.8
0.6
0.4
0.2
0
1
10
b) See the chart provided above. The process is out of control since pattern 5 is detected; hence, the
process is out of control, and we should be concerned about the delivery process.
Sample
8
9
6
6
3
4
2
4
p = % defects
2/8 = 0.250
7/8 = 0.875
c) Delivery time is important for judging delivery quality and is available; sample size of 8 is not
sufficient for p-chart (min. of 50-100 required); x-bar-chart and R-chart would be better than pchart
2. C-chart: center line = 24, UCL = 24 + 3(24) = 38.7, LCL = 24 3(24) = 9.3 (chart omitted)
Zone width = (38.7 24)/3 or (24 9.3)/3 = 4.9
Zone boundaries:
38.7 = UCL
33.8 = center + 2(4.9) or UCL 4.9
28.9 = center + 4.9 or UCL 2(4.9)
24 = center line
19.1 = center 4.9 or LCL + 2(4.9)
14.2 = center 2(4.9) or LCL + 4.9
9.3 = LCL
Sample Above/
Below
1
A
2
B
3
A
4
A
5
B
6
B
7
B
8
B
9
A
10
A
Up/
Down
--D
U
D
D
U
D
D
U
U
Zone
C
B
A
C
B
C
C
B
B
A
Sample Above/
Below
11
A
12
A
13
A
14
A
15
A
16
B
17
B
18
B
19
B
20
A
Up/
Down
D
U
U
U
D
D
D
U
U
U
Zone
C
B
B
A
C
B
A
B
B
C
Zone
B
A
B
C
C
B
C
A
B
C
3. The process seems to be getting out of control (more points below the centre line than above), but at
the moment, it is still in control according to the pattern tests. However, more points below the centre
line mean that the number of complaints is fewer than the historical average (its a good thing). Make
sure that there is no mistake in the collection of data and construction of the control chart. If everything
is okay, then update the center line, UCL and LCL to reflect the fundamental change in the process.
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Answer
d
c
b
d
b
c
b
d
c
a
b
d
a
b
d
a
c
d
a
b
b
d
Process Case
JIT, #1
JIT, #3
JIT, #4
JIT, #5
JIT, #7
JIT, #10
JIT Case
JIT Case
TQM, #1
TQM, #2
TQM, #3
TQM, #6
TQM, #7
TQM, #8
TQM, #10
TQM, #11
TQM, #12
TQM Case
SPC, #4
SPC, #5
SPC, #6
SPC, #7
SPC, #8
SPC, #9
better coordinate their operations with the order cycles. However, D&S does have some
reasons to be concerned also.. The relationship shifts supply responsibility to D&S. The
guaranteed business would be at risk if D&S were to forecast or perform poorly. Further,
the responsibility for placing orders in now a D&S paid employee.
Dixon #2 A buyer, such as Dixon, can obtain many relationships from a JIT relationship
with a supplier. Order timing becomes the responsibility of the vendor. Quality should
improve and deliveries should become more reliable. Through better coordination, the
suppliers costs should improve, which may eventually be reflected in their price. Buyers
often have several concerns of such an arrangement. For one, seldom does a supplier have
only one customer in a market. Buyers worry that sensitive information, such as upcoming
product promotions, may become known to their competitors through the information they
share with the supplier. Buyers are also often reluctant to give up the ability to play one
vendor against another in search for the lowest price.
E.g., the quality of a university can be defined by the quality of professors, up-to-date
facilities, variety of course offerings, administrative efficiency and accuracy, perceived
prestige, etc.
Lecture notes, TQM, slide 2
Traditional notions of quality focused on inspection of products
Lecture notes, Quality, slide 5
If we hired more inspectors without changing other aspects of quality, we would find more
defects before they reach the customer; therefore, internal failure costs will increase, while
external failure costs will decrease; appraisal costs would increase since we are now paying
for more inspectors; prevention costs would remain the same
The Plan-do-study-act cycle is a procedure for continuous improvement
Lecture notes, Quality, slide 10
Lecture notes, TQM, slide 11
Lecture notes, TQM, slide 12-14
Gold Coast Advertising (GCA) #1 It is not frequently measuring quality based on the ability
to meet customer expectations. Success is determined by meeting or exceeding customer
expectations. It is important to frequently ask customers about how they define quality
since their definition can change over time.
Lecture notes, SPC, slide 7-11
The x-bar chart is used to detect variations in the mean of the process, while the R-chart is
used to detect changes in the variability of the process; in order for a process to be in
control, both the process average and variability must be in control
The key difference is that the sample size for the c-chart is always one; each plot represents
the number of defects on one item, such as the number of spelling errors in a report
Lecture notes, SPC, slide 26
Lecture notes, SPC, slide 4
Six sigma symbolizes extremely high quality
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Kleenex improved quality: Kleenex is a well established company, and facial tissue paper is a standard
item in every household. Hence, the quality of tissue paper from the product design or manufacturing
point of view would not be useful for Kleenex. Improved quality must be defined from a consumers
perspective.
2. Process type = project; based on characteristics such as product type (unique, much variety, custommade), customer type (Olympics organizer, one at a time), demand type (infrequent)
3. JIT is not suitable for certain demand types (very high volume, very low volume, highly fluctuating
demand).
4. JIT lower inventory need to have high quality products; discuss quality at the source, preventive
approach, and continuous improvement
5. Discuss TQM guiding principles and stages of quality management from a service providers
perspective.
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