Practice Problem Set for EBTM 365 Exam 1

We will have a review session on Tuesday, February 24th. We will

discuss these practice problems. Try to solve as many problems as
possible before attending the review session.
Answer keys are provided at the end of this document.
These practice problems do not cover all topics.
So carefully review all class notes, exercises, and homework
assignments.
Exam 1 covers the following:
Introduction to Operations Management
Class Note: 1. Introduction to Operations Management
Homework 1
Management of Quality
Class Note: 2. Management of Quality
Homework 1-2
Tip Top Market case
Quality Control
Class Notes:2. Quality Control
Exercises 1-5
Homework 3-4

INTRODUCTION TO OPERATIONS MANAGEMENT

1. Measurements taken at various points in the transformation process for control

purposes are called:
A) plans
B) directions
C) controls
D) feedback
E) budgets

2. Taking a systems viewpoint with regard to operations in today's environment

increasingly leads decision-makers to consider ______________ in response to the
___________.
A) flexibility; pressure to be more efficient
B) offshoring; need to promote domestic production
C) sustainability; threat of global warming
D) technology; impact of random variation
E) forecasting; stabilization of demand

MANAGEMENT OF QUALITY

3. Quality of conformance refers to the degree to which goods and services

conform to the intent of the designers as documented in the specifications.

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 A) True
B) False

4. TQM stands for:

A) Taguchi Quality Methods
B) Tactical Quality Measurements
C) The Quality Matrix
D) Total Quality Management
E) Total Quantity Measurement

5. The PDSA cycle forms the conceptual basis for continuous improvement.
A) True
B) False

6. Total quality management attempts to involve everyone in an organization in the

effort to achieve quality.
A) True
B) False

7. TQM is not just a collection of techniques. It is rather a whole new attitude

toward quality.
A) True
B) False

8. The quality control improvement tool that resembles a "fishbone" is ________.

A) brainstorming
B) check sheets
C) Pareto analysis
D) cause-and-effect diagrams
E) fail-safe methods

9. A chart showing the number of occurrences by category would be used in:

A) Pareto analysis
B) interviewing
C) cause-and-effect diagrams
D) benchmarking
E) none of the above

QUALITY CONTROL

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10.The variation of a sampling distribution is tighter than the variation of the
underlying process (population) distribution.
A) True
B) False

11.The sampling distribution can be assumed to be approximately normal even

when the underlying process distribution is not normally distributed.
A) True
B) False

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12._______ variation is a variation whose cause can be identified.
A) Assignable
B) Controllable
C) Random
D) Statistical
E) Theoretical

13.A process that exhibits random variability would be judged to be out of control.
A) True
B) False

14.Concluding a process is out of control when it is not is known as a Type I error.

A) True
B) False

15.Non-random variation is likely whenever all observations are between the LCL
and UCL.
A) True
B) False

16.A control chart used to monitor the process mean is the

A) xx -chart
B) R-chart
C) p-chart
D) c-chart

17.A shift in the process mean for a measured characteristic would most likely be
detected by
A) xx -chart
B) R-chart
C) p-chart
D) c-chart

18.An xx -chart can only be valid if the underlying population it measures is a normal
distribution.
A) True
B) False

19.The number of defective parts in a sample is an example of measurement

data.
A) True
B) False

20.A c-chart is used for:

A) means
B) ranges
C) percent defective
D) fraction defective per unit
E) number of defects per unit

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21.A shift in the process mean for a measured characteristic would most likely be
detected by
A) p-chart
B) x-bar chart
C) c-chart
D) R-chart
E) s-chart

(For Questions 22-23) Four samples of three observations each have been taken,
with actual measurements (in centimeters) shown below.

Sample
1 2 3 4
12.3 11.9 12.0 12.1
12.2 12.2 12.2 11.8
12.1 12.2 11.8 11.8

22.Construct three-sigma xx -chart.

23.Construct three-sigma R-chart.

24.A process that makes chocolate candy bars has an output that is normally
distributed with a mean of 6 oz. and a standard deviation of .01 oz. Determine
three sigma control limits for an xx -chart assuming a sample size of 10.

(For Questions 25-26) A town's department of public works is concerned about

adverse public reaction to a sewer project that is currently in progress. Because of
this, the Commissioner of Public Works has authorized a weekly survey to be
conducted of town residents. Each week, a sample of 100 residents is questioned on
their feelings towards the project. The results to date are shown below.

Week 1 2 3 4 5 6 7 8
Number 10 8 12 6 4 14 8 10
opposed

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25.Construct a control chart that would provide for a 5% risk of Type I error (Hint:
5% risk of Type I error = the probability that data points fall outside of the control
limits is 5%).

26.Is the process in control?

27.Construct the appropriate two-sigma control chart for the sample observations
listed below. Is the process in control?

Observation 1 2 3 4 5 6 7 8 9 10 11
Num. defects per 9 4 3 5 6 3 4 2 3 2 3
unit

(For Question 28-32) Consider the following data:

Sample 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Defectiv 18 24 19 22 20 19 22 23 25 17 20 23 21 16
es

28.Determine the number of A/B runs.

29.Determine zmed. Round your answer to two decimal places.

30.Determine the number of up/down runs.

31.Determine zu/d.

32. Do the above results suggest that the data are non-random? Use z=2.

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(For Questions 33-34) Consider the following control chart. All points are within the
control limits, suggesting an in-control process.

33.Conduct a median run test with z = 2. Is the process truly random?

34.Conduct an up/down run test with z = 2. Is the process truly random?

Answer Key
Questio Answer Questio Answer Questio Answer
n No. n No. n No.
1 D 13 B 25 LCL=0.034,
UCL=0.146
2 C 14 A 26 Yes
3 A 15 B 27 No
4 D 16 A 28 9
5 A 17 A 29 0.55
6 A 18 B 30 8
7 A 19 B 31 -0.68
8 D 20 E 32 Yes
9 A 21 B 33 Yes
10 A 22 LCL=11.744, UCL=12.356 34 No
11 A 23 LCL=0, UCL=0.771
12 A 24 LCL=5.9905, LCL=6.0095