Feb17 - Q1 Q2 Q3 Q4 Q5_ T Name: Student Number: YORK...

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1 Q1 Name: Q2 Student Number: Q3 Q4 YORK UNIVERSITY Q5___ Atkinson College T ADMS2510 3.0 Final Examination, February 17, 2001, 7:00 to 10:00 pm Instructors: Alison Beavis, Larry Blair, Rod McTaggart, Gary Spraakman Instructions a. This is a closed book examination and no collaboration is allowed. b. There are 100 marks and five compulsory questions worth 20 marks each. c. Put your name and student number at the top of this page. d. Answer each question on the examination paper, and on the back of a page if necessary. e. You may write with a pencil or a pen. f. Place photo identification on your desk during the examination to facilitate verification. Question 1 (20 marks - 36 minutes) PIK Manufacturing rewards its plant managers for their ability to meet budgeted quality cost reductions. The bonus is increased if the productivity goal is met or exceeded. The productivity goal is computed by multiplying the units produced by the prevailing market price and dividing this measure of output by the total cost of the inputs used. Additionally, if the plant as a whole meets the budgeted targets, the production supervisors and workers receive salary and wage increases. Jim Smith, the manager of a plant in Alberta, felt obligated to do everything he could to provide this increase to his employees. Accordingly, he has decided to take the following actions during the last quarter of the year to meet the plant’s budgeted targets and increase the productivity ratio: a. Decrease inspections of the process and final product by 50 percent and transfer inspectors temporarily to quality training programs. Jim believes this move will increase the inspectors’ awareness of the importance of quality; also, decreasing inspection will produce significantly less downtime and less rework. By increasing the output and decreasing the costs of internal failure, the plant can meet the budgeted reductions for internal failure costs and, simultaneously,
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Feb17 - Q1 Q2 Q3 Q4 Q5_ T Name: Student Number: YORK...

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