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Q:
The simplest method of inventory record-keeping is called cycle counting.
a. True
b. False
Q:
The probability of rejecting a good lot is known as consumer's risk.
Q:
Forrester Research has shown that using computerized information systems can cut accounts payable costs by 95%.
a. True
b. False
Q:
In acceptance sampling, a manager can reach the wrong conclusion if the sample is not representative of the population it was drawn from.
Q:
A lot that is accepted by acceptance sampling is certified to be free of defects.
Q:
Acceptance sampling makes it possible to determine tolerance limits that allow for inherent variation due to chance.
a. True
b. False
Q:
Poka-yoke is a proactive approach that seeks to mistake-proof a firms operations.
a. True
b. False
Q:
Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample.
Q:
The ideal quantity of an item to purchase is referred to as the economic order quantity (EOQ).
a. True
b. False
Q:
At your first job out of college you have been assigned to the production of bottled 20 oz. soda.
The process has upper and lower spec limits of 20.5 and 19.5 oz, respectively, with a mean of 19.8 oz
and standard deviation of .1 oz. Your manager has requested the process produce no more than 3.4
defects per 1 million bottles produced. Calculate Cpk and then determine if the process is capable according to the manager's standard.
Q:
Manufacturers with seasonal demand schedules often hire temps during peak production and keep only skeleton crews the rest of the year.
a. True
b. False
Q:
A consultant has been brought in to a manufacturing plant to help apply Six Sigma principles. Her first task is to work on the production of rubber balls. The upper and lower spec limits are 21 and 19 cm, respectively. The consultant takes ten samples of size five and computes the sample standard deviation to be .7 cm and the sample mean to be 19.89 cm. Compute Cp and Cpk for the process. Give the consultant advice on what to do with the process based on your findings.
Q:
Outsourcing non-competitive functions can free the entrepreneur to focus on his/her greatest strengths.
a. True
b. False
Q:
The specification for a plastic handle calls for a length of 6.0 inches .2 inches. The standard deviation of the process is estimated to be 0.05 inches. What are the upper and lower specification limits for this product? The process is known to operate at a mean thickness of 6.1 inches. What are the Cp and Cpk values for this process? Is this process capable of producing the desired part?
Q:
For service firms, the customer has to arrive before production begins resulting in employee scheduling issues.
a. True
b. False
Q:
The specification for a plastic liner for concrete highway projects calls for a thickness of 6.0 mm 0.1 mm. The standard deviation of the process is estimated to be 0.02 mm. What are the upper and lower specification limits for this product? The process is known to operate at a mean thickness of 6.03 mm. What is the Cp and Cpk for this process? About what percent of all units of this liner will meet specifications?
Q:
When a company expands resources in response to a constraint, they are using the option of increasing efficiency.
a. True
b. False
Q:
The specifications for a manifold gasket that installs between two engine parts calls for a thickness of 2.500 mm .020 mm. The standard deviation of the process is estimated to be 0.004 mm. The process is currently operating at a mean thickness of 2.50 mm. (a) What are the upper and lower specification limits for this product? (b) What is the Cp for this process? (c) The purchaser of these parts requires a capability index of 1.50. Is this process capable? Is this process good enough for the supplier? (d) If the process mean were to drift from its setting of 2.500 mm to a new mean of 2.497, would the process still be good enough for the supplier's needs?
Q:
Most companies run out of stock from incorrect ordering.
a. True
b. False
Q:
The specifications for a manifold gasket that installs between two engine parts calls for a thickness of 2.500 mm .020 mm. The standard deviation of the process is estimated to be 0.004 mm. The process is currently operating at a mean thickness of 2.50 mm. (a) What are the upper and lower specification limits for this product? (b) What is the Cp for this process? (c) About what percent of all units of this gasket will meet specifications? Does this meet the technical definition of Six Sigma?
Q:
A process is operating in such a manner that the mean of the process is exactly on the lower specification limit. What must be true about the two measures of capability for this process?
Q:
An example of associative forecasting is when a concert promoter predicts attendance based on the trend of attendance of the same event in the same location in previous years.
a. True
b. False
Q:
What is the difference between the process capability ratio Cp and the process capability index Cpk?
Q:
Weighing bags of mulch during a production process is an example of an variable inspection.
a. True
b. False
Q:
What does it mean for a process to be "capable"?
Q:
Flexible management systems uses machine automation to cut manufacturing costs while satisfying customer needs.
a. True
b. False
Q:
A Cpk index greater than ________ is a capable process, one that generates fewer than 2.7 defects per 1000 at the 3σ level.
Q:
Only product firms have an operations process.
a. True
b. False
Q:
Quality is best defined as the totality of features and characteristics of a product or service that impacts the firms ability to satisfy stated or implied needs.
a. True
b. False
Q:
The term ________ is used to describe how well a process makes units within design specifications (or tolerances).
Q:
The terms repetitive manufacturing and mass production are synonymous.
a. True
b. False
Q:
A Cpk index of 1.00 equates to what defect rate?
A) five percent
B) 3.4 defects per million items
C) 2.7 defects per 1,000 items
D) 97.23 percent
E) one percent
Q:
Because the small business owner must perform many functions that consume many hours each day, it is acceptable practice to decline a salespersons request for an appointment.
a. True
b. False
Q:
The statistical definition of Six Sigma allows for 3.4 defects per million. This is achieved by what Cpk index value?
A) 6
B) 1
C) 1.33
D) 1.67
E) 2
Q:
Job shops in manufacturing use specialized equipment.
a. True
b. False
Q:
If the Cpk index exceeds 1:
A) the AQL must be smaller than the LTPD.
B) σ must be less than one-third of the absolute value of the difference between each specification limit and the process mean.
C) the x-bar chart must indicate that the process is in control.
D) the process is capable of Six Sigma quality.
E) the process is characterized as "not capable."
Q:
Which of the following is true regarding the process capability index Cpk?
A) A Cpk index value of 1 is the highest possible.
B) The larger the Cpk, the more units meet specifications.
C) The Cpk index can only be used when the process centerline is also the specification centerline.
D) Positive values of the Cpk index are good; negative values are bad.
E) Its value will always be at least as large as the Cp value for the same process.
Q:
Kaoru Ishikawa contends that 95 percent of the typical companys quality problems can be solved by using The Basic Six quality tools.
a. True
b. False
Q:
Marcia knew the importance of testing candidates before hiring them, but 40% of the employees who successfully passed the employment test later performed poorly on the job. Marcias employment test lacked
a. applicability.
b. interpretability.
c. reliability.
d. validity.
Q:
A Cp value of 1.33 indicates a standard of how many standard deviations (sigmas)?
A) 6
B) 1.33
C) 2
D) 3
E) 4
Q:
The process capability measures Cp and Cpk differ because:
A) only one ensures the process mean is centered within the limits.
B) Cp values above 1 indicate a capable process, while Cpk values above 2 indicate a capable process.
C) They do not differ: both are identical.
D) Cp values for a given process will always be greater than or equal to Cpk values.
E) Both A and D are correct.
Q:
Which condition is most likely to encourage the appointment of a human resource manager?
a. Labor turnover rate is low.
b. Competition for personnel is low.
c. Employees are represented by a union.
d. There are 35 employees in the firm.
Q:
The Cpk index measures the difference between the desired and actual dimensions of goods or services produced.
Q:
A systematic step-by-step method for training non-managerial employees on the job is known as
a. On-the-Job Training.
b. Employee Development Training.
c. Job Instruction Training.
d. Intensive Job Orientation.
Q:
The higher the process capability ratio, the greater the likelihood that process will be within design specifications.
Q:
Planned efforts to help workers master the knowledge, skills, and behaviors they need to perform their duties is known as
a. employee training.
b. human resources.
c. management development.
d. workforce diversity.
Q:
A process that is in statistical control will always yield products that meet their design specifications.
Q:
Michael, a small business owner of a Web-development firm, wishes to persuade a highly qualified applicant to consider a position with his firm, even though the applicant has also had offers from large firms. What should Michael emphasize to the applicant?
a. family atmosphere with only three employees
b. long history of the firm with no take overs
c. more freedom to structure job responsibilities
d. retirement program and other benefits
Q:
A retail store manager is trying to improve and control the rate at which cashiers sign customers up
for store credit cards. The manager takes several samples of size 50. He finds that each sample of 50 contained 5 credit card signups on average. Find p-bar and 99.73% control limits.
Q:
The cost of employee benefits is ____ the cost of salary and wage payments.
a. 25 percent
b. 31 percent
c. 66 percent
d. 200 percent
Q:
A retail store manager is trying to improve and control the rate at which cashiers sign customers up
for store credit cards. Suppose the manager takes 10 samples, each with 100 observations. The p-bar
value is found to be .05, and the manager does not want a lower limit below .0064. What z-value would this imply, and how confident can she be that the true lower limit is greater than or equal to .0064?
Q:
Legislation that provides protection to employees within a business is called the
a. Family and Medical Leave Act.
b. Occupational Safety and Health Act.
c. Fair Labor Standards Act.
d. All of the above provide protection.
Q:
A city police chief decides to do an annual review of the police department by checking the number of monthly complaints. If the total number of complaints in each of the 12 months were 15, 18, 13, 12, 16, 20, 5, 10, 9, 11, 8, and 3 and the police chief wants a 90% confidence level, are the complaints in control?
Q:
Profit-sharing plans
a. provide a more direct incentive in small firms than in large firms.
b. are practically impossible to use successfully in small firms.
c. are similar to individual incentive plans in their motivational effect.
d. are an expensive fringe benefit for small firms, costing 40 percent of payroll.
Q:
A department chair wants to monitor the percentage of failing students in classes in her department. Each class had an enrollment of 50 students last spring. The number of failing students in the 10 classes offered that term were 1, 4, 2, 0, 0, 0, 0, 0, 0, and 3, respectively. Compute the control limits for a p-chart at the 95% confidence level. Is the process in control?
Q:
James is investigating the advantages of employee outsourcing. It appears that the greatest benefit will be to free him and his firm from
a. the need for extensive training.
b. fringe benefit costs.
c. concern about disciplinary action.
d. excessive paperwork.
Q:
A bank's manager has videotaped 20 different teller transactions to observe the number of mistakes being made. Ten transactions had no mistakes, five had one mistake and five had two mistakes. Compute proper control limits at the 90% confidence level.
Q:
As his business grows, George finds he does not have either the time or the skills to manage the human resources function. He has decided to outsource part of personnel management to an organization that handles paperwork and administers benefits for his employees in an arrangement called
a. a joint venture.
b. co-employment.
c. employment benefits.
d. human resourcing.
Q:
Larry's boat shop wants to monitor the number of blemishes in the paint of each boat. Construct a 3-sigma c-chart to determine if their paint process is in control using the following data. Sample Number
Number of Defects 1
3 2
4 3
2 4
1 5
3 6
2 7
1 8
4 9
2 10
3
Q:
Ten samples of size four were taken from a process, and their weights measured. The sample averages and sample ranges are in the following table. Construct and plot an x-bar and R-chart using these data. Is the process in control? Sample
Mean
Range 1
20.01
0.45 2
19.98
0.67 3
20.25
0.30 4
19.90
0.30 5
20.35
0.36 6
19.23
0.49 7
20.01
0.53 8
19.98
0.40 9
20.56
0.95 10
19.97
0.79
Q:
In addition to it use to attract and hold key personnel, ESOPs can also:
a. allow employees to veto management decisions.
b. give employees a share of liability.
c. give owners a way to cash out of the business
d. provide an incentive for managers to reduce labor costs.
Q:
One of the largest expense categories for most businesses is
a. advertising.
b. research and development.
c. payroll.
d. professional fees.
Q:
A part that connects two levels should have a distance between the two holes of 4". It has been determined that x-bar and R-charts should be set up to determine if the process is in statistical control. The following ten samples of size four were collected. Calculate the control limits, plot the control charts, and determine if the process is in control. Mean
Range Sample 1
4.01
0.04 Sample 2
3.98
0.06 Sample 3
4.00
0.02 Sample 4
3.99
0.05 Sample 5
4.03
0.06 Sample 6
3.97
0.02 Sample 7
4.02
0.02 Sample 8
3.99
0.04 Sample 9
3.98
0.05 Sample 10
4.01
0.06
Q:
The width of a bronze bar is intended to be one-eighth of an inch (0.125 inches). Inspection samples contain five bars each. The average range of these samples is 0.01 inches. What are the upper and lower control limits for the x-bar and R-chart for this process, using 3-sigma limits?
Q:
To be the most useful, a test for a potential applicant should be
a. general in nature.
b. practical.
c. psychological in nature.
d. valid and reliable.
Q:
New employees benefit most from orientation when it is given
a. during the employment review.
b. after selection, but prior to reporting for work.
c. during the first two or three days on the job.
d. during the first year of employment.
Q:
A woodworker is concerned about the quality of the finished appearance of her work. In sampling units of a split-willow hand-woven basket, she has found the following number of finish defects in ten units sampled: 4, 0, 3, 1, 2, 0, 1, 2, 0, 2.
a. Calculate the average number of defects per basket.
b. If 3-sigma control limits are used, calculate the lower control limit and upper control limit.
Q:
Karen is checking references and finds former employers reluctant to do more than verify dates of employment even though the applicants have given their consent. A probable reason for their reluctance is that
a. records for former employees are typically not readily available.
b. the former employee is glad to have the potential employee not employed with their company.
c. respondents may fear litigation by former employees who fail to get jobs they seek.
d. Karen is asking too many personal questions.
Q:
Repeated sampling of a certain process shows the average of all sample ranges to be 1.0 cm. The sample size has been constant at n = 5. What are the 3-sigma control limits for this R-chart?
Q:
In small firms, a professionals versatility and flexibility may be more important than technical competence.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
Q:
A local manufacturer supplies you with parts, and you would like to install a quality monitoring system at his factory for these parts. Historically, the defect rate for these parts has been 1.25 percent (You've observed this from your acceptance sampling procedures, which you would like to discontinue). Develop 3σ control limits for this process. Assume the sample size will be 200 items.
Q:
A hospital-billing auditor has been inspecting patient bills. While almost all bills contain some errors, the auditor is looking now for large errors (errors in excess of $250). Each day last week, the auditor examined 100 bills and found an average defect rate of 16%. Calculate the upper and lower limits for the billing process for 99.73% confidence.
Q:
A person who interviews well should not automatically be hired.
a. True
b. False
Q:
If μ = 9 ounces, σ = 0.5 ounces, and n = 9, calculate the 3-sigma control limits for the x-bar chart.
Q:
Employee benefits are expensive, amounting to more than 40 percent of payroll expense for many small firms.
a. True
b. False
Q:
The mean and standard deviations for a process are μ = 90 and σ = 9, respectively. For the variable control chart, a sample size of 16 will be used. Calculate the standard deviation of the sample means.
Q:
Requesting a credit report to establish an applicants employment eligibility is illegal according to the Fair Credit Reporting Act.
a. True
b. False
Q:
McDaniel Shipyards wants to develop a control chart to assess the quality of its steel plate. They take ten sheets of 1" steel plate and compute the number of cosmetic flaws on each roll. Each sheet is 20' by 100'. Based on the following data, develop limits for the 3-sigma control chart, plot the control chart, and determine whether the process is in control. Sheet
Number of flaws 1
1 2
1 3
2 4
0 5
1 6
5 7
0 8
2 9
0 10
2
Q:
Employee referrals provide a rich source of good applicants for many small firms.
a. True
b. False
Q:
Private employment agencies administer the various state unemployment insurance programs.
a. True
b. False