UHV MGT6355 final exam

Question 1

The primary purpose of the Malcolm Baldrige National Quality Award is which of the following?

		To encourage the spread of statistical quality control.
		To improve human resource development and management in manufacturing.
		To help companies review and structure their quality programs.
		To prove that American firms were competitive in quality.
		To emphasize the use of quantitative methods in process management.

Question 2

The six-step process for green sourcing does not include which of the following?

		Assess the opportunity
		Assess the supply base
		Confer with environmental groups
		Engage sourcing agents
		Institutionalize the sourcing strategy

Question 3

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:
Using CPM, which activities make up the critical path?

		A, B, D, F, G
		A, C, E, F, G
		A, C, B, F, E
		A, D, E
		None of the above

Question 4

Which of the following is an organizationally-driven reason for outsourcing?

		Improve effectiveness by focusing on what the firm does best
		Turn fixed costs into variable costs
		Reduce costs through lowered cost structure and increased flexibility
		Improve risk management
		Improve credibility and image by associating with superior providers

Question 5

You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude?

		You have incorrectly performed the analysis
		You have multiple critical paths
		Only one path is optimal
		More than one path is optimal
		The project will not be completed by the desired time

Question 6

What is a work breakdown structure?

		A list of the activities making up the higher levels of the project
		A definition of the hierarchy of project tasks, subtasks, and work packages
		A depiction of the activities making up a project
		A Gantt chart
		A structure that is incompatible with the Critical Path Method

Question 7

Which of the following is a criterion that influences manufacturing plant or warehouse facility location decisions?

		Proximity to customers
		Corporate policy
		Competitor's locations
		Competitive advantage
		Host community politics

Question 8

One of the objectives of facility location analysis is to select a site with the lowest total cost. Which of the following are hidden costs that should be included in the analysis?

Becoming less responsive to the customer

Supplier costs

Taxes

Construction costs

Product life cycle costs

Question 9

With which of the following should we use an "X-bar" chart based on sample means to monitor process quality?

Grades in a freshman "pass/fail" course

Tire pressures in an auto assembly plant

Vehicles passing emissions inspection

Computer software errors

Number of units with missing operations

Question 10

Which of the following is the cost of quality classification for costs such as scrap, rework, or repair?

Appraisal costs

Prevention costs

External failure costs

Internal failure costs

Rework and wastage

Question 11

Failure mode and effect analysis is used in six-sigma projects. It involves which of the following?

Closely examining each rejected part to determine the cause

A careful sampling plan

Calculating a risk priority number for each possible failure

Reporting the effect each failure has had on a customer

Multivariate testing

Question 12

A simple project listing of five activities, their predecessors and their respective time estimates are presented below:

Using the CPM, which activities have slack in this project?

		A
		B
		C
		D
		C and E

Question 13

The centroid method for plant location uses which of the following data?

		Volume of goods to be shipped between existing points
		Inbound transportation costs
		Transport times between facilities
		Correlation matrix of existing facilities
		Probabilities and payoffs

Question 14

A company must perform a maintenance project consisting of seven activities. The activities, their predecessors, and their respective time estimates are presented below:

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?

		9 days
		10 days
		11 days
		12 days
		13 days

Question 15

In Hau Lee's uncertainty framework to classify supply chains, a supply chain for innovative products with an evolving supply process is called which of the following?

		Efficient
		Forward looking
		Agile
		Risk hedging
		Responsive

Question 16

For which of the following should we use a "p" chart to monitor process quality?

		Defective electrical switches
		Errors in the length of a pencil
		Weight errors in cans of soup
		Temperature of entrees in a restaurant
		Letter grades on a final examination

Question 17

Acquisition costs include which of the following costs?

		Quality costs
		Maintenance and repair costs
		Environmental costs
		Supply chain costs
		Customer dissatisfaction costs

Question 18

A simple project listing of five activities, their predecessors and their respective time estimates are presented below:

Using CPM, what is the Latest Finish Time for the last activity in this project (i.e., the total time to complete the project)?

		10 days
		7 days
		8 days
		12 days
		9 days

Question 19

For an activity in a CPM analysis, the Early Start time is 8 and the Late Start time is 10. Which of the following statements is true?

		The Late Finish is 12
		The Early Finish is 10
		The slack for this activity is 2
		The duration of this activity is 2
		The activity is on the critical path

Question 20

The Malcolm Baldrige National Quality Award is given to organizations that have done which of the following?

Instituted a six-sigma approach to total quality control

Demonstrated a high level of product quality

Demonstrated outstanding quality in their products and processes

Have a world-class quality control function

Most significantly improved their product quality levels

Question 21

Ownership costs are incurred after the initial purchase and are associated with the ongoing use of the product or material. Which of the following is not an ownership cost listed in the text?

		Financing costs
		Energy costs
		Taxes
		Maintenance and repair costs
		Supply network costs

Question 22

An advantage of a pure project where self-contained teams work full time on a project is which of the following?

		Team members can work on several projects
		Functional area is a "home" after the project is completed
		There are duplicated resources
		Lines of communication are shortened
		Overall organizational policies and goals can be ignored

Question 23

Some of the advantages of a functional project where the project is housed in a functional division include which of the following?

		The project manager has full authority over the project
		Team pride, motivation, and commitment are high
		A team member can work on several projects
		Needs of the client are secondary
		None of the above

Question 24

You have just used the capability index (C_pk) formulas to compute the two values "min [2, 2.5]." Which of the following is the proper interpretation of these numbers?

		The true capability index value is 2.5
		The mean of the production process has shifted to the left of the design limits
		The mean of the production process has shifted to the right of the design limits
		The mean has not shifted at all
		The true capability index value is between 2 and 2.5

Question 25

For an activity in a CPM analysis the Early Finish time is 20 and the Late Finish time is 20. Which of the following statements is true?

		The activity's late start must happen before its early start
		The activity is on the critical path
		The slack for this activity is 20
		The duration of this task is zero
		The duration of this task is 20

Question 26

When considering outsourcing, what should firms be sure to avoid?

		Losing control of non-core activities which don't distinguish the firm
		Allowing outsourcing to develop into a substitute for innovation
		Giving the outsourcing partner opportunities to become a strong competitor
		Allowing employees transferred to the outsourcing partner to rejoin the firm
		Adverse corporate tax implications of asset transfers to the outsourcing partner

Question 27

Ownership costs include which of the following costs?

		Environmental costs
		Warranty costs
		Supply chain costs
		Quality costs
		Taxes

Question 28

You have just been assigned to oversee a series of projects. Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects. These project managers will report to you. Which project management structure is being used?

		Pure Project
		Task force
		Matrix Project
		Functional Project
		PERT

Question 29

Which of the following are basic assumptions that justify an analysis of the costs of quality?

		Failures are caused
		Prevention is more expensive
		Performance can be learned
		Rules of thumb don't always work
		Appraisal costs are less than prevention costs

Question 30

In a Gantt chart the horizontal axis is usually which of the following?

		Activities
		Cost
		Profit
		Time
		Milestones

Question 31

Design of experiments is a statistical methodology often used in six-sigma projects. It aims to accomplish which of the following?

		Keep careful track of the occurrences of each possible defect
		Determine the cause and effect relationships between process variables and output
		Report defects to management on a Pareto chart
		Carefully change each individual process variable until the cause of a defect is found
		Eliminate defects by finding out who or what is causing them

Question 32

A fishbone diagram as part of a six-sigma quality improvement process might be found in which DMAIC category?

		Define
		Measure
		Analyze
		Improve
		Control

Question 33

Which of the following is the cost of quality classification for costs such as inspection, testing, and other tasks to ensure that the product or process is acceptable?

		Appraisal costs
		Prevention costs
		External failure costs
		Internal failure costs
		Checking costs

Question 34

Which of the following is not an infrastructure criteria used in facility location analysis?

		Adequate school system
		Adequate health care
		Adequate transportation
		Adequate low cost labor
		Adequate public utility systems

Question 35

The dimension of design quality that concerns the sensory characteristics of the product is which of the following?

		Features
		Serviceability
		Perceived quality
		Reputation
		Aesthetics

Question 36

XYZ corporation uses statistical quality control to monitor the quality of their product. They have determined the process average, representing the population proportion defective, is 0.02, and size of the samples is 100 units. (3 pts each)

a). In constructing a p-chart using 3-sigma limits, what is the UCL?

b). In constructing a p-chart using 3-sigma limits, what is the LCL?

c). Discuss what would happen if one of the sample values is 0.085.

Question 37

The data in following Table represent the number of defects detected in a series of 15 samples. Each sample contained 4 units. (3 pts each)

Sample	# Defective
1	26
2	23
3	32
4	35
5	25
6	32
7	20
8	0
9	6
10	2
11	5
12	16
13	5
14	9
15	12

a). What is the estimate of the average number of defects per sample?

b). Using 3-sigma limits, what is the UCL for the c-chart?

c). Using 3-sigma limits, what is the LCL for the c-chart?

d). For this c-chart, what conclusion can be drawn?

Question 38

A company wants to determine where they should locate a new warehouse. They have two existing production plants (i.e., Plant A and Plant B) that will ship units of a product to this warehouse. Plant A is located at the (X, Y) coordinates of (50, 100) and will have volume of shipping of 250 units a day. Plant B is located at the (X, Y) coordinates of (150, 200) and will have a volume of shipping of 150 units a day. Using the centroid method, please calculate the X and Y coordinates for the new plant location? (9 pts)