Introduction to operations and supply chain management 4th edition bozarth test bank 1 by martha.mcbride110

Introduction to Operations and Supply Chain Management 4th Edition Bozarth

Full download at link:

Test bank: https://testbankpack.com/p/test-bank-for-introductionto-operations-and-supply-chain-management-4th-edition-bozarthhandfield-0133871770-9780133871777/

Solution Manual: https://testbankpack.com/p/solution-manual-forintroduction-to-operations-and-supply-chain-management-4thedition-bozarth-handfield-0133871770-9780133871777/

Introduction to Operations and Supply Chain Management, 4e (Bozarth/Handfield) Chapter 5 Managing Quality

Learning Objective 5-1

1) Joseph Juran's definition of quality as "fitness for use" is an example of the value perspective of quality.

Answer: TRUE

Diff: 2

Reference: Quality Defined

Keywords: value perspective, Juran

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

Education, Inc.

Pearson

2) Garvin's dimension of durability is satisfied if the product fails infrequently.

Answer: TRUE

Diff: 2

Reference: Quality Defined

Keywords: durability, Garvin

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

3) A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the:

A) performance perspective.

B) value perspective.

C) conformance perspective.

D) intention perspective.

Answer: C

Diff: 1

Reference: Quality Defined

Keywords: conformance perspective

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

4) The ________ dimension of quality asks how long a product can go between failures or the need for maintenance.

A) warranty

B) lifetime

C) serviceability

D) reliability

Answer: D

Diff: 1

Reference: Quality Defined

Keywords: reliability dimension

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

5) On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is:

A) aesthetics.

B) performance.

C) features.

D) perceived quality.

Answer: A

Diff: 2

Reference: Quality Defined

Keywords: aesthetic dimension

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

6) A person or company taking the stance that quality must be judged, in part, by how well the characteristics of a particular product or service align with the needs of a specific user is taking the ________ perspective.

Answer: value

Diff: 2

Reference: Quality Defined

Keywords: value perspective

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

7) A customer that concentrates on the ease of repair or support for the product or service is concerned primarily with the ________ dimension of quality.

Answer: serviceability

Diff: 1

Reference: Quality Defined

Keywords: serviceability dimension

AACSB: Application of Knowledge

LO: 5.1: Discuss the various definitions and dimensions of quality and why quality is important to operations and supply chains.

Learning Objective 5-2

1) Appraisal costs can occur when a company has NOT produced any defective items.

Answer: TRUE

Diff: 1

Reference: Total Cost of Quality

Keywords: appraisal cost

AACSB: Application of Knowledge

LO: 5.2: Describe the different costs of quality, including internal and external failure, appraisal, and prevention costs.

2) Money spent training an employee how to do the job mistake free is an example of an appraisal cost.

Answer: FALSE

Diff: 2

Reference: Total Cost of Quality

Keywords: prevention cost

AACSB: Application of Knowledge

LO: 5.2: Describe the different costs of quality, including internal and external failure, appraisal, and prevention costs.

3) Costs incurred by defects that occur prior to delivery to the customer are called:

A) external failure costs.

B) internal failure costs.

C) appraisal costs.

D) prevention costs.

Answer: B

Diff: 2

Reference: Total Cost of Quality

Keywords: internal failure cost

AACSB: Application of Knowledge

LO: 5.2: Describe the different costs of quality, including internal and external failure, appraisal, and prevention costs.

4) A(n) ________ cost is incurred by a company to assess its quality levels.

Answer: appraisal cost

Diff: 2

Reference: Total Cost of Quality

Keywords: appraisal cost

AACSB: Application of Knowledge

LO: 5.2: Describe the different costs of quality, including internal and external failure, appraisal, and prevention costs.

5) Describe the four quality-related costs and tell how they are related.

Answer: The four quality-related costs are internal failure costs, external failure costs, appraisal costs, and prevention costs. Internal failure costs are caused by defects that occur prior to delivery to the customer, including money spent on repairing or reworking defective products, as well as time wasted on these activities. External failure costs are costs incurred by defects that are not detected until a product or service reaches the customer. Appraisal costs occur when a company assesses its quality levels. Prevention costs are those costs incurred by an organization to actually prevent defects from occurring to begin with. Classically, we expect that as prevention and appraisal efforts (and costs) rise, that internal and external failure costs should drop.

Diff: 2

Reference: Total Cost of Quality

Keywords: prevention cost, appraisal cost, external failure, internal failure

AACSB: Application of Knowledge

LO: 5.2: Describe the different costs of quality, including internal and external failure, appraisal, and prevention costs.

Learning Objective 5-3

1) Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers.

Answer: TRUE

Diff: 1

Reference: Total Quality Management

Keywords: total quality management, TQM

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

2) Process owners are empowered employees that have the authority and responsibility for improving the organization's business processes.

Answer: TRUE

Diff: 2

Reference: Total Quality Management

Keywords: process owner

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

3) Which of the following is NOT a core idea of total quality management?

A) cost reduction

B) leadership improvement

C) employee empowerment

D) continuous improvement

Answer: A

Diff: 1

Reference: Total Quality Management

Keywords: TQM, total quality management

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

4) A technique used to translate customer requirements into technical requirements is:

A) quality assurance.

B) statistical quality control.

C) quality function deployment.

D) continuous improvement.

Answer: C

Diff: 1

Reference: Total Quality Management

Keywords: TQM, total quality management

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

5) ________ are teams or individuals who have the authority and responsibility for improving the organization's business processes.

Answer: Process owners

Diff: 2

Reference: Total Quality Management

Keywords: process owner

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

6) What are the seven core ideas of total quality management?

Answer: The seven core principles of total quality management are customer focus, leadership involvement, continuous improvement, employee empowerment, quality assurance, supplier partnerships, and strategic quality plan.

Diff: 1

Reference: Total Quality Management

Keywords: TQM, total quality management

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

7) Define employee empowerment and process ownership. How are these two concepts related?

Answer: Employee empowerment means giving employees the responsibility, authority, training, and tools necessary to manage quality. A process owner is a team or individual who has the authority and responsibility for improving the organization's business processes and who is rewarded accordingly. Process ownership is one way many organizations empower employees and completes the circle of employee empowerment by including process performance in the reward system.

Diff: 1

Reference: Total Quality Management

Keywords: employee empowerment, process ownership

AACSB: Application of Knowledge

LO: 5.3: Describe what TQM is, along with its seven core principles.

Learning Objective 5-4

1) Reductions in process variance result in higher process capability.

Answer: TRUE

Diff: 2

Reference: Statistical Quality Control

Keywords: process variance, process capability, Cp

AACSB: Analytical Thinking

LO: 5.4: Calculate process capability ratios and indices and set up control charts for monitoring continuous variables and attributes, and describe they key issues associated with acceptance sampling and the use of OC curves.

2) Six Sigma quality means that the difference between the upper and lower tolerance levels is six standard deviations wide.

Answer: FALSE

Diff: 2

Reference: Statistical Quality Control

Keywords: process standard deviation, process capability, Six Sigma

AACSB: Application of Knowledge

3) If a contact lens has a scratch on it, the manufacturer classifies it as defective. This is an example of a continuous variable.

Answer: FALSE

Diff: 1

Reference: Statistical Quality Control

Keywords: defective, attributes

AACSB: Application of Knowledge

4) The upper and lower limits of a control chart should be wider than the upper and lower tolerance limits.

Answer: FALSE

Diff: 2

Reference: Statistical Quality Control

Keywords: tolerance limits, control limits

AACSB: Analytical Thinking

5) An R chart is used to track how much the individual observations within a sample vary.

Answer: TRUE

Diff: 1

Reference: Statistical Quality Control

Keywords: R chart, variance

AACSB: Application of Knowledge

6) Producer's risk rises as consumer's risk falls.

Answer: TRUE

Diff: 2

Reference: Statistical Quality Control

Keywords: producer's risk, consumer's risk

AACSB: Application of Knowledge

7) With everything else held constant, a sampling plan with c = 1 will have a lower producer's risk than a sampling plan with

Answer: FALSE

Diff: 3

Reference: Statistical Quality Control

Keywords: producer's risk, consumer's risk

AACSB: Analytical Thinking

8) Taguchi's quality loss function runs counter to the notion that product falling within tolerance limits is acceptable.

Answer: TRUE

Diff: 3

Reference: Statistical Quality Control

Keywords: Taguchi, quality loss

AACSB: Application of Knowledge

9) A barbecue sauce producer sells their product in a 20-ounce bottle. Their historical process mean has been 20 ounces with a standard deviation of 0.25 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability ratio of the bottle filling process?

A) 1.00

B) 1.33

C) 1.75

D) 2.00

Answer: B

Diff: 2

Reference: Statistical Quality Control

Keywords: process capability ratio

AACSB: Analytical Thinking

10) A barbecue sauce producer sells their product in a 20-ounce bottle. Their current process mean is 19.80 ounces with a standard deviation of 0.3 ounces. If their tolerance limits are set at 20 ounces plus or minus 1 ounce, what is the process capability index of the bottle filling process?

A) 0.89

B) 1.00

C) 1.11

D) 1.33

Answer: A

Diff: 2

Reference: Statistical Quality Control

Keywords: process capability index

AACSB: Analytical Thinking

11) A barbecue sauce producer makes their product in an 80-ounce bottle for a specialty store. Their historical process mean has been 80.1 ounces and their tolerance limits are set at 80 ounces plus or minus 1 ounce. What does their process standard deviation need to be in order to sustain a process capability index of 1.5?

A) 0.10

B) 0.15

C) 0.20

D) 0.25

Answer: C

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability index

AACSB: Analytical Thinking

12) A barbecue sauce producer makes their product in an 80-ounce bottle for a specialty store. Their historical process mean has been 80 ounces and their tolerance limits are set at 80 ounces plus or minus 1 ounce. What does their process standard deviation need to be in order to sustain a process capability ratio of 1.66?

A) 0.10

B) 0.20

C) 0.25

D) 0.33

Answer: B

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability ratio

AACSB: Analytical Thinking

13) An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The best tool to determine this information is a(n):

A) process capability ratio.

B) process capability index.

C) x-bar chart.

D) operating characteristics curve.

Answer: C

Diff: 2

Reference: Statistical Quality Control

Keywords: statistical quality control, x-bar chart, SPC

AACSB: Application of Knowledge

14) A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their Rchart?

A) 24.9, 20.3

B) 7.2, 0.0

C) 3.1, 0.0

D) 22.6, 0.0

Answer: B

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, R chart

AACSB: Analytical Thinking

Sample # 1 2 3 4 5 6 7 8 Item #1 21.1 20.2 24.1 22.6 21.2 20.9 22.4 20.9 Item #2 21.7 20.6 21.7 21.7 24.1 23.5 24.6 24.7 Item #3 23.0 24.5 23.2 23.0 20.6 22.8 23.4 22.8 Item #4 20.3 23.5 24.4 25.0 20.7 23.2 23.3 24.5

15) A pizza delivery service wants to track their delivery times. They take eight samples of four deliveries and record the following data. What are the upper and lower control limits of their Xbar chart?

A) 24.9, 20.3

B) 23.8, 21.4

C) 22.6, 19.5

D) 21.1, 17.6

Answer: A

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, x-bar chart

AACSB: Analytical Thinking

16) The fill size for a small bag of peanuts distributed by a popular airline is 50 grams. The producer wishes to set up a set of control charts for this process and collects the data shown in the table. What are the upper and lower control limits of their R-chart?

A) 6.22, 0.62

B) 6.77, 0.42

C) 7.22, 0.22

D) 7.79, 0.00

Answer: D

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, R chart

AACSB: Analytical Thinking

Sample Item #1 Item #2 Item #3 Item #4 Sum 1 54.5 54.3 53.8 50.4 213.0 2 50.6 53.5 53.2 54.9 212.3 3 51.1 54.3 50.4 50.7 206.6 4 52.7 52.1 51.3 51.0 207.2 5 51.7 51.2 54.7 54.3 211.8 6 51.1 51.5 54.7 50.4 207.7 7 54.0 52.3 54.7 51.4 212.4 8 53.2 50.4 53.4 51.4 208.4 9 51.9 50.2 50.2 52.9 205.1

17) The fill size for a small bag of peanuts distributed by a popular airline is 50 grams. The producer wishes to set up a set of control charts for this process and collects the data shown in the table. What are the upper and lower control limits of their X-bar chart?

A) 54.84, 49.85

B) 54.41, 50.32

C) 53.87, 50.78

D) 53.51, 51.18

Answer: A

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, x-bar chart

AACSB: Analytical Thinking

18) A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the manufacturer produces 0.1 percent defective displays. If they inspect 5000 phones each day for the next 10 days, what are the upper and lower control limits for their control chart if their sample mean mirrors their historical process average?

A) 0.0002, 0.0001

B) 0.0142, 0.0058

C) 0.1127, 0.0873

D) 0.0023, 0.0000

Answer: D

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, p chart

AACSB: Analytical Thinking

19) A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. Based on historical data, the process engineer expects about 0.1 percent defective displays. How many phones should they sample to establish an average fraction defective for their statistical quality control initiative?

A) 5

B) 50

C) 500

D) 5000

Answer: D

Diff: 3

Reference: Statistical Quality Control

Keywords: sample size, p chart

AACSB: Analytical Thinking

20) A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. The production team takes a sample of 350 phones and finds one with a defective display. How many additional phones should they sample to establish an average fraction defective for their statistical quality control initiative?

A) 1400

B) 1750

C) 2100

D) 2450

Answer: A

Diff: 3

Reference: Statistical Quality Control

Keywords: sample size, p chart

AACSB: Analytical Thinking

Inc.

2016 Pearson Education,

21) Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table.

What is Floyd Electric's process standard deviation?

A) 0.15

B) 0.17

C) 0.42

D) 0.39

Answer: C

Diff: 3

Reference: Statistical Quality Control

Keywords: standard deviation

AACSB: Analytical Thinking

22) Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table.

What is Floyd Electric's process capability index?

A) 1.08

B) 1.33

C) 1.42

D) 1.66

Answer: A

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability index

AACSB: Analytical Thinking

25.69 25.58 24.78 24.94 24.87 24.63 25.70 25.52 24.95 24.91

23) Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table. He has heard discussion of 6 sigma in the business news recently and would like to join the club.

What percentage decrease in process standard deviation would be required for Floyd Electric to achieve 6-sigma process capability? Assume that his process mean remains where it is.

A) 36%

B) 40%

C) 46%

D) 58%

Answer: B

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability

AACSB: Analytical Thinking

24) A housekeeping supervisor inspects rooms after the staff has cleaned them and compares their staff's performance against a checklist of items that should be cleaned, replaced, etc., according to standard operating procedure at the hotel. Over the past week she finds three rooms that have cleaning mistakes out of the 140 rooms she has inspected. How many additional rooms should she sample to establish an average fraction defective for the p chart she would like to make to monitor this process?

A) 78

B) 93

C) 108

D) 133

Answer: B

Diff: 3

Reference: Statistical Quality Control

Keywords: sample size, p chart

AACSB: Analytical Thinking

25.69 25.58 24.78 24.94 24.87 24.63 25.70 25.52 24.95 24.91

25) The probability of rejecting a lot with quality better than the acceptable quality level is:

A) the lot tolerance percent defective.

B) the lot tolerance percent acceptable.

C) the consumer's risk.

D) the producer's risk.

Answer: D

Diff: 3

Reference: Statistical Quality Control

Keywords: producer's risk, OC curve, alpha, operating characteristic curve

AACSB: Application of Knowledge

26) Taguchi defines quality in terms of:

A) parts per million.

B) losses.

C) lot tolerance percent defective.

D) acceptable quality levels.

Answer: B

Diff: 2

Reference: Statistical Quality Control

Keywords: Taguchi, quality loss

AACSB: Application of Knowledge

27) The ability of a non-centered process to meet certain quality standards is measured by its ________.

Answer: process capability index

Diff: 2

Reference: Statistical Quality Control

Keywords: process capability index, Cpk, process capability

AACSB: Application of Knowledge

28) ________ measures refer to the presence or absence of a particular characteristic.

Answer: Attributes

Diff: 2

Reference: Statistical Quality Control

Keywords: attributes measure, control chart

AACSB: Application of Knowledge

29) The probability of accepting a lot with worse quality than the lot tolerance percent defective level is ________.

Answer: beta, consumer's risk

Diff: 2

Reference: Statistical Quality Control

Keywords: acceptance sampling, beta, consumer's risk

AACSB: Application of Knowledge

30) An airline wants to monitor the performance of their baggage handling crew on the daily flight from Oklahoma City to Dallas that is always filled to its 140 passenger capacity. They track the number of passengers that lose bags each flight for a two-week period. The data are displayed in the following table. Determine control limits for the appropriate chart and indicate any points that are out of control.

Answer: This is attribute data, so a p-chart is called for. The upper and lower control limits are 0.076 and 0 and all samples fall comfortably within this range. = = = = (0.0316)

Sp = = = 0.0148

UCL = + 3Sp LCL = - 3Sp

UCL = 0.0316 + 3(0.0148) LCL = 0.0316 - 3(0.0148)

UCL = 0.076 LCL = -0.013 ∴LCL = 0

Day # # Bags Lost 1 3 2 4 3 3 4 2 5 5 6 7 7 6 8 8 9 1 10 7 11 6 12 2 13 1 14 7

Diff: 3

Reference: Statistical Quality Control

Keywords: SQC, p-chart

AACSB: Analytical Thinking

21 Copyright © 2016 Pearson Education, Inc. Day # # Bags Lost P (# Lost/140) 1 3 0.0214 2 4 0.0286 3 3 0.0214 4 2 0.0143 5 5 0.0357 6 7 0.0500 7 6 0.0429 8 8 0.0571 9 1 0.0071 10 7 0.0500 11 6 0.0429 12 2 0.0143 13 1 0.0071 14 7 0.0500

31) A hot tub manufacturer wants the thermostat to control water temperature to within one degree when set at 130 degrees Fahrenheit. They randomly select 10 hot tubs, set the thermostats to 130, and record the following data with an infrared thermometer that has recently been calibrated.

What is their process capability?

Answer: = = = = 130.0 = = 0.416

The process is centered so the process capability ratio is calculated as

CP = CP = CP = 0.80

Their process capability is poor.

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability, standard deviation, Cp

AACSB: Analytical Thinking

Temp 129.9 129.7 130.2 129.7 129.8 130 129.6 131 130.3 129.8

32) Floyd Electric is fabricating flanges for a new electrical motor. The flange is to be 25 millimeters in diameter with an upper tolerance limit of 26.5 millimeters and a lower tolerance limit of 23.5 millimeters. Bill Floyd took a sample consisting of ten flanges, measured the diameter and recorded the observations in the table.

What is Floyd Electric's process capability? Answer:

= 25.16 = = 0.42

The process is not centered so the process capability index is calculated as

CPK = Min

CPK = 1.07

Their process capability is poor.

Diff: 3

Reference: Statistical Quality Control

Keywords: process capability, standard deviation

AACSB: Analytical Thinking

25.69 25.58 24.78 24.94 24.87 24.63 25.70 25.52 24.95 24.91

= = =

33) The fill size for a small bag of peanuts distributed by a popular airline is 50 grams. The producer wishes to set up a set of control charts for this process and collects the data shown in the table. Develop the proper statistical quality control charts. Is the process in control?

Sample range and mean values for the nine samples are indicated in the table. The overall average range is 3.4 and average sample mean is 52.3, which become the center lines for the R and X-bar charts respectively. For n = 4, the A2 = 0.73, D3 = 0, and D4 = 2.28

2016 Pearson Education, Inc.

UCLR

LCLR = 0.00

UCLXbar = 52.3

0.73

3.4

54.84 LCLXbar = 52.3

0.73

3.4 = 49.85

= 2.28 × 3.4 = 7.79

× 3.4 = 0.00

Both charts reflect an in-control situation.

Diff: 3

Reference: Statistical Quality Control

Keywords: statistical quality control, R chart

AACSB: Analytical Thinking

34) A cell phone manufacturer inspects the video display on each color phone to verify that the screen can display all colors with the brilliance their customers have come to expect. Each phone is turned on, run through a self-test procedure, and classified as either acceptable or unacceptable based on test performance. The production team takes a sample of 350 phones and finds one with a defective display. How many additional phones should they sample to establish an average fraction defective for their statistical quality control initiative?

Answer: The initial sample has a fraction defective of 1/350 = 0.002857. The sample size n must be such that Min(np, n(1-p)) = 5. Since p is smaller than 0.5, solving for np = 5 will yield the total number of phones that must be sampled.

n(.002857) = 5

n = 5/.002857 = 1750

They have already sampled 350 phones so 1750 - 350 = 1400 phones left to sample.

Diff: 3

Reference: Statistical Quality Control

Keywords: sample size, p chart

AACSB: Analytical Thinking

35) A tailor decides to use Taguchi's quality loss function to analyze his shirt making process. Knowing it to be parabolic in shape and of the form L(y) = k(y - t)2 where t is the target, y is the actual measurement, and k is the process constant, the tailor decides to use a recent customer order to calculate his process parameters. He takes the custom shirt and measures the collar, which was requested to have a 17.5" collar but actually has a 17.75" collar. The customer notices the difference and demands a 50% reduction in the price of the shirt, which cost the tailor $45 to make. Instead of selling the shirt for $175, the tailor will reduce his price to $87.50. What is the tailor's process constant for a silk shirt?

Answer: The tailor is missing out on $87.50 of profit by reducing his price to this extent, so the L(y) = 87.50 = k(y - t)2 where t = 17.50 and y = 17.75.

So, $87.50 = k(17.5 - 17.75)2

k = $1400/inch squared

Diff: 3

Reference: Statistical Quality Control

Keywords: Taguchi Loss Function

AACSB: Analytical Thinking

Learning Objective 5-5

1) ISO 9001:2008 can be used by both manufacturing and service companies.

Answer: TRUE

Diff: 1

Reference: Managing Quality Across the Supply Chain

Keywords: ISO 9000

AACSB: Application of Knowledge

LO: 5.5: Discuss some of the important issues associated with managing quality across the supply chain.

2) One international standard for managing quality across the supply chain is:

A) ISO 9000.

B) ISO 14000.

C) AQL.

D) LTPD.

Answer: A

Diff: 2

Reference: Managing Quality Across the Supply Chain

Keywords: ISO 9000

AACSB: Application of Knowledge

LO: 5.5: Discuss some of the important issues associated with managing quality across the supply chain.

3) ________ is a family of standards, developed by the International Organization for Standardization, representing an international consensus on good quality management practices.

Answer: ISO 9000

Diff: 1

Reference: Managing Quality Across the Supply Chain

Keywords: ISO 9000

AACSB: Application of Knowledge

LO: 5.5: Discuss some of the important issues associated with managing quality across the supply chain.

4) Describe the ISO 9000 family of standards, including the objectives and process of becoming certified.

Answer: ISO 9000 is a family of standards supported by the International Organization for Standardization, representing an international consensus on good quality management practices. ISO 9000 addresses business processes, rather than specific outcomes. ISO 9001:2008 seeks to help organizations deliver products or services that meet the customer's quality requirements and applicable regulatory requirements, while aiming to enhance customer satisfaction and achieve continual improvement of the performance in pursuit of these objectives. Companies seeking certification (or registration) will have independent auditors certify that their businesses are ISO 9000 compliant. ISO 9004:2009 is used to extend the benefits obtained from ISO 9001:2008 to all parties that are interested in or affected by a business's operations.

Diff: 2

Reference: Managing Quality Across the Supply Chain

Keywords: ISO 9000, ISO 9001

AACSB: Application of Knowledge

LO: 5.5: Discuss some of the important issues associated with managing quality across the supply chain.