NAME Fall, The definition of quality that involves the product functioning as expected without failure is
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1 NAME Fall, 2003 UM ID Number OM 400 Exam II INSTRUCTIONS: Write answers on this test for Parts I-III. Feel free to use extra pieces of paper wherever you need extra space. Total points = 100. Pace yourself! ADVICE: Read questions carefully and answer all parts of the question! I. Multiple Choice. Circle the one best answer. (2 pts. each = 30 points) 1. TQM is about meeting quality expectations defined by a. Marketing b. Top management c. The sales force d. The customer e. The quality control group 2. The definition of quality that involves the product functioning as expected without failure is a. Performance b. Conformance c. Reliability d. Standardization e. Endurance 3. The quality of services is often defined by perceptions that are highly a. Subjective b. Reliable c. Regarded d. Defined e. Tangible 4. Which of the following is not characteristic of TQM? a. Inspecting products after they have been made b. Identifying and correcting the root causes of quality problems c. Encompasses the entire organization d. Attempts to embed quality in every aspect of the organization e. Concerned with technical aspects of quality 5. What technique determines whether a batch of goods should be accepted or rejected? a. Statistical process control b. Acceptance sampling c. Fishbone diagramming d. Scatter plotting e. Experimental design OM 400 Exam I 1
2 6. What technique answers the question of whether the process is functioning properly or not? a. Fishbone diagramming b. Acceptance sampling c. Statistical process control d. Scatter plotting e. Experimental design 7. The range is an example of what? a. Traditional statistical tools b. Fishbone diagramming c. Acceptance sampling d. Experimental design e. Statistical process control 8. A p-chart is an example of what? a. Traditional statistical tools b. Fishbone diagramming c. Acceptance sampling d. Experimental design e. Statistical process control 9. The term means getting the right quantity of goods at the right place and the right time. a. Just-in-time b. Total quality management c. Kanban d. Reverse engineering e. Flexible manufacturing 10. JIT considers waste anything that a. Fits in a waste basket b. Reduces production capacity c. Has been discarded d. Cannot be recycled e. Does not add value 11. Which of the following is characteristic of the JIT philosophy? a. Inventories are an asset b. Lot sizes are optimized by formula c. Tolerate some scrap d. Elimination of waste e. Rigidity 12. Beliefs that help define the JIT philosophy include all of the following except a. Simplicity b. Visibility c. Flexibility d. Push production e. Continuous improvement OM 400 Exam I 2
3 13. Which of the following is not a feature common to all forecasting models? a. This period s forecast error is needed to compute next period s forecast. b. Forecasts are rarely perfect. c. Forecasts are more accurate for groups of items rather than for individual items. d. Forecasts are more accurate for shorter rather than for longer time horizons. e. All of the above features are common to all forecasting models. 14. Which forecasting method uses surveys and interviews to identify customer preferences? a. Market research b. Executive opinion c. Delphi method d. Naïve method e. Gamma method 15. Which forecasting method is particularly good for predicting technological changes and scientific advances? a. Market research b. Executive opinion c. Delphi method d. Naïve method e. Gamma method II. True - False. Write in the space below T (True) or F (False). Also, if you indicate a statement as false, state the reason why. For statements you indicate as true, no justification is necessary. (2 pts. each = 26 points) 16. TQM is reactive, designed to build quality into the product and process design. 17. The Malcolm Baldridge Award is intended to reward and stimulate quality initiatives. 18. The most important factor in the success or failure of TQM efforts is the genuineness of the organization s commitment. 19. Acceptance sampling occurs after the product has been produced. 20. The standard deviation measures the central tendency in a set of data. 21. A variable is a product characteristic that has a discrete value and can be counted. 22. Given a sample size of 2, the lower limit for the R chart is 0. OM 400 Exam I 3
4 23. Suppose that you have created control charts to measure the length of candles. The process is in a state of control if either the x-bar chart is in control or the R chart is in control. 24. Product specifications are preset, whereas control limits are computed after observing data. 25. Just-in-time relies on cross-functional worker skills. 26. Forecasts are more accurate for individual items than for groups or families of items. 27. A cycle is any data pattern that regularly repeats itself and is constant in length. 28. Exponential smoothing is a weighted average forecasting procedure. II. Short / Brief Answers. Keep your answers brief and be sure to use appropriate terminology from the course. (various points = 21 pts) 29. List the two types of flow pictured in any value stream map? (2 pts) 30. Give 3 reasons why value stream mapping is essential? (3 pts) OM 400 Exam I 4
5 31. List at least 3 specific features that make up the philosophy of TQM? (3 pts) 32. What are the 7 forms of waste in any enterprise? (4 pts) 33. Explain the phrase sea of inventory and how JIT systems can address this phenomena? (4 pts) OM 400 Exam I 5
6 34. What are the three basic elements that work together to complete a JIT system? (3 pts) 35. What are the two types of Kanban cards? (2 pts) IV. Problems. Show all your work for partial credit. Be sure to indicate your final answers clearly and with the proper units. (various points = 23 pts) 36. Cans of soup are supposed to weigh exactly 16 oz. Inspectors want to develop process control charts. They take eight samples of five boxes and weigh them. They obtain the following data: Sample Mean Range a. What are the upper and lower control limits for the x-bar chart? (3 pts) OM 400 Exam I 6
7 b. What are the upper and lower control limits for the R chart? (3 pts) e. Is the process in a state of control? (1 pt) 37. Matt works for a production facility that makes ball point pens. His job is to place the spring on the central ink insert. He is expected to process 200 inserts per hour. The factory uses a Kanban production system with containers that hold 50 inserts. It takes 30 minutes for Frank to receive the inserts from the previous work station. How many Kanbans are needed? (3 pts) OM 400 Exam I 7
8 38. The following historical data has been collected representing sales of a product. Compare forecasts using a 3- period moving average and exponential smoothing with a = 0.2 using MAD and MSE. Answer which forecast model is best in this situation? (8 pts) Week Demand A company uses exponential smoothing with trend to forecast monthly sales of its product, which show a trend pattern. At the end of Week 5, the company wants to forecast sales for Week 6. The trend through Week 4 has been 20 additional cases sold per week. Average sales have been 85 cases per week. The demand for Week 5 was 90 cases. The company uses a = 0.20 and b = Make a forecast including trend for Week 6. (5 pts) OM 400 Exam I 8
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