Exam 7: Inventory Management

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A process is said to be in statistical control when ,______ , and _______ _ of its distribution does not change over time.

(Short Answer)
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Historically, the average proportion of defective bars has been 0.015. Samples will be of 100 bars each. Construct a p- chart using z = 3. What is the value of UCL?

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Historically, the average time to service a customer complaint has been 3 days and the standard deviation has been 0.50 day. Management would like to specify the control limits for an X−ˉ\bar { X- } chart with a sample size of 10 and 3 sigma limits. The LCL for the chart would be

(Multiple Choice)
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At which of the following levels will the cost of detecting product defects be the highest?

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A process is said to be in statistical control when the location, spread, or shape of its distribution changes over time.

(True/False)
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Which one of the following statements is TRUE?

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______ costs are incurred in assessing the level of quality attained by the operating system.

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Consumers consider various aspects when defining quality in terms of high- performance design. Consideration of the lifespan of a product before it begins to deteriorate or no longer functions at an acceptable level refers to which one of these aspects?

(Multiple Choice)
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Benchmarking involves four basic steps, which are

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One of the principles that total quality management (TQM) stresses is employee involvement.

(True/False)
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How does SPC help companies implement continuous improvement programs?

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A(n) ______ is a form used to record the frequency of occurrence of certain product or service characteristics related to quality.

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In SPC, the distribution of sample means

(Multiple Choice)
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Purely random, unidentifiable sources of variation that are unavoidable with an existing process make it impossible to apply statistical process control techniques.

(True/False)
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Which one of the following statements about total quality management is TRUE?

(Multiple Choice)
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A manufacturer of silk inspects each bolt of material at the end of the manufacturing process. When the process is in control, it averages 11 defects per bolt. If a 3- sigma control limit is desired, what is the lower control limit?

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Describe the three standards of ISO that are being adopted by may leading firms.

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Which one of the following is a consequence of external failures?

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Which of the following statements is TRUE?

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Appraisal costs are associated with preventing defects before they happen.

(True/False)
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