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Unformatted text preview: NAME dbluﬁbygé Circle Section Time: 9:30 11 EXAM 2
BUSQOM 1070, Spring 2011 Directions 1. Take a minute to quickly go over all the questions first before you start writing your answers. 2. The exam is worth 100 points and time allowed is 1 hour 15 minutes — pace yourself accordingly. 3. Answer all questions completely. Show all your work. In order to qualify for any partial credit, your
work should be clearly understood. 4. Answer questions A, B, C, and D directly in the exam booklet. Answer question E on the Scantron
sheet. 5. The exam is closed—book / closednotes. You are allowed one 8.5” X 11” single sided sheet of
formulas that must be turned in with the exam. 6. If you have any questions or need any clarification please ask. Please write neatly. 8. Good luck! © N ﬂentml Chart ﬂamers.“ Tab[e $6.1 Men Fac per 3 Lower Range n A2 D4 D3
2 1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.075
8 .373 1.864 0.136
9 .337 1.816 0.184 10 .308 1.777 0.223 12 .266 1.716 0.284 This is a standard tablell >S‘?G’51?"<m1mtz Ffzkimzmm ﬁrm. twi‘aiirrtxiwg a 1: S’rz‘uimv: 52 ME Points Possible Points Achieved
QUESTION A 15
QUESTION B 25
QUESTION C 10
QUESTION D 15
QUESTION E 35
TOTAL 100 Page 1 of 11 QUESTION A (15 points) NAME 60 (thm A quality analyst wants to construct a sample mean chart for controlling a packaging process. He knows
from past experience that the process standard deviation is two ounces. Each day last week, he randomly selected four packages and weighed each. The data from that activity appears below. Day Wednesday
Thursday Package 1
22
20 1. Calculate each 9? and 57'. A ‘ __ “7‘4 : lyH‘lH/wriq =I
YMM, 23442333 :23 mm I” C]
Y . : i3+20+zz+zo ”m ' l {'2‘ M I
XW’" 23%?le :2, L, L,
Wm: M,“ i, zsmnzow‘ilw :mtp L! 5 quSo/O ' .
2. Calculate the upper and lower9€ﬂ3% control limits.
MCL: §+ZTK LU." ‘31’10}
. {Z
= 32".? z '8‘” 3. Is this process in control? Why or why not? (You do not need to construct the control chart.) Tl’UL prams is m) incorrlm. KW :25>22.u=ma. ‘ti/u samplz mum ﬁx Momma is qumlo’
"HAM M W” WM, “MA PageZofll NAME JQlul’lMS
QUESTION B (25 points) A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are
three different mechanisms which can be installed in these "pets." These toys will sell for the same
price regardless of the mechanism installed, but each mechanism has its own variable cost and setup
cost. Profit, therefore, is dependent upon the choice of mechanism and upon the level of demand. The
manufacturer has in hand a forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each
mechanism—demand combination appear in the table below. Demand MM WEIectronic action
Light $250,000 $90,000 $100,000 $400,000 $440,000 $400,000 Heavy $650,000 $740,000 $780,000 Construct a decision tree to analyze this problem. What is the best course of action? ,, .250, 000 my LA) —. 0.74150, 000)
. Xo' +0.45 (900,000)
V“ 9305 + o as (050 we)
I, ' 1’ ‘ 4571500
~. ' *’ 455‘ 0
wk U600" my (0) : 0.2 (40,000)
' D mwmah'b ,0 w: 70“ 40,000 +0.45 (440,000)
. “'40, W: +0.55(7~lo,ooo)
‘ ' 0' ‘ viola 000 '9
'Ié 0.55 ’ » l475,000
140,000
, . ENN (<3 = 0.2 (400 coo)
I e, l +0.45 (WOO/00°)
v “15.1 ‘6‘
“ + o. 35 (m, 000)
' 0'51? 14/00 000 4
I = I455,000
73901000 D: WWW/50°) 415,000) 455,009)
4‘
:— 415,000
EMT (‘pMﬁL O‘P’Ma’n (5 {Pl/\Wnﬂiﬁb 106, “FO( an Page30f11 EMV o? J$15,000, NAME JOlMﬂbﬂS
QQESTION C (10 points) A work cell is required to make 80 computerized diagnostic assemblies (for installation into hybrid automobiles) each day. The cell currently works an eight hour shift, of which seven hours is available for productive work. These assemblies require five operations, with times of 1.0, 0.8, 2.4, 2.5, and 1.4
minutes each. 1. What is takt time for this cell?
+a’ml work time avai‘lablb WM Wm = wits renal/ed
= (1W5) (bowlml
5:0 3 535 minim/iii” 2. How many workers will be needed? Wlw/s rabm'ml — W“ OPWh’Om'Y‘L Ho.” 3.44.7.5 H4 : g1
. ‘ ________ﬂ_______, trivial limo 5.075 5 ’5
= L545
’2: X worms 3. Using the number of workers found in part2, how many pieces in total can they make per day? ﬂ 1: 4.05 “Ill/0) 1 [03,1
07 4.06 “93.7 +mW {Dim can be mm. Page 4 of 11 NAME dOlgthiS QUESTION D (15 points) There are three work centers (A, B, and C) behind the financial aid counter at a nearby university. They
can each fit into any of three office spaces (1, 2, and 3) off the corridor behind the desk. There is no student contact in these areas, only workers. The distance between areas 1—2 is 40 feet, areas 2—3 is 60
feet, and areas 13 is 100 feet. The matrix of work (trips per day) at the three centers is in the following table. 1. Calculate the distance cost if work center A is assigned to position 3, work center B is assigned to position 1, and work center C is assigned to position 2. l 'L 6 whims): .—. 075040) + {15000) Mama)
6% PM aw = [000 i' 0500 Jr 5WD
‘ ll,100 fat 2. Find a better layout than the one in part 1. What is the cost in distance of your layout? Ana oi m¥oliowikﬂ lupus 0M MW: 003?
A ' B‘C/ ionoo A 4:45 ioﬁoo
prp, .6; 8.700
(143843 @1300
C'lb'pl “7,000 Page 5 of 11 NAME JOIthHS
QUESTION E (35 points) Answer the following questions on the Scantron sheet. Each question is worth 1 point. 1. A process is said to be in statistical control when assignable causes are the only sources of
variation. True
False 2. If the process average is in control, then the process range must also be in control.
A) True False 3. A process that is in statistical control will always yield products that meet their design
specifications. A True
False 4. The higher the process capability ratio, the greater the likelihood that process will be within
design specifications. 7. A state of nature is an occurrence of a situation over which the decision maker has little or no
control. True B) False 8. In a decision tree, a square symbol represents a state of nature node.
A) True @ False 9. if a decision maker knows for sure which state of nature will occur, he/she is making a decision
under certainty. “True
B False Page 6 of 11 10. 11. 12. 13. 14. 15. 16. 17. NAME {jolt/H1005
One advantage of the Analytic Hierarchy Process (AHP) is quantifying qualitative assessments
between criteria or with respect to alternatives. True
') False A Pairwise comparison in the AHP selects which of two items is more important to the decision
maker and then assesses how much more important. @ True
) False One uideline for a retail layout is to locate high—draw items around the periphery of the store.
. True ' False v Cross—docking processes items as they are received, rather than placing them in storage.
A True
B) False Good layouts balance the flow of costs, people, and information.
A True False A time series trend equation is 25.3 + 2.1 X. What is your forecast for period 7?
A) 23.2
B) 25.3 F7 =J53+JJH3
C) 27.4
@) 4o_o 5 075.3 44%,]
E) cannot be determined s ’40 For a given product demand, the time series trend equation is 53  4 X. The negative sign on the
slope of the equation
A) is a mathematical impossibility
B) is an indication that the forecast is biased, with forecast values lower than actual values
C? is an indication that product demand is declining
implies that the coefficient of determination will also be negative
E) implies that the cumulative error will be negative Demand for a certain product is forecast to be 800 units per month, averaged over all 12
months of the year. The product follows a seasonal pattern, for which the January monthly
index is 1.25. What is the seasonally—adjusted sales forecast for January? A) 640 units _
B) 798.75 units F40!) : $000.30) 71000 C 800 units
D 1000 units
E) Cannot be calculated with information given
Page 7 of 11 NAME J0] (H1 ‘ons 18. A seasonal index for a monthly series is about to be calculated on the basis of three years’
accumulation of data. The three previous July values were 110, 150, and 130. The average over
all months IS 190. The approxnmate seasonal Index for July IS NO ¥ lSOHEO A 0.487 at . —, :IZaO
éoeszi VAN/“Id 3 ’ 1.462 . o) 2.053 mow: [so/Ho = 01/34 E) cannot be calculated with the information given 19. The degree or strength of a relationship between two variables is shown by the
A) alpha
B) mean
C mean absolute deviation
écorrelation coefficient ‘ cumulative error 5 20. if a sample of items is taken and the mean of the sample is outside the control limits the process
is ( AD out of control and the cause should be established B) in control, but not capable of producing within the established control limits
C) within the established control limits with only natural causes of variation D) monitored closely to see if the next sample mean will also fall outside the control limits
E) producing high quality products 21. A sample of parts is measured. The mean ofthis sample is in the middle of the control limits, but
some individual parts measure too low for design specifications and other parts measure too
high. Which of the following is true? A The process is out of control, and the cause should be established.
(Eb The process is in control, but not capable of producing within the established control
limits.
C) The process is within the established control limits with only natural causes of variation. D) The process is outside the established control limits with only natural causes of
variation. E) The process is in control, and there is nothing to worry about. 22. Jars of pickles are sampled and weighed. Sample measures are plotted on control charts. The ideal weight should be precisely 11 02. Which type of chart(s) would you recommend?
A) p—charts B) c—charts
x — and R—charts D) a? , but not Rcharts
E) both p— and c—charts Page 8 of 11 NAME ngzggﬁons 23. The c—chart signals whether there has been a
A gain or loss in uniformity
@ change in the number of defects per unit
C) change in the central tendency of the process output D) change in the percent defective in a sample
E) change in the AOQ 24. The expected value of perfect information (EVPl) is the
A) payoff for a decision made under perfect information
B) payoff under minimum risk
C) average expected payoff
@ difference between the payoff under perfect information and the payoff under risk
E) none of the above 25. A decision—maker using the maximax criterion on the problem below would choose Alternative 50
50 80
_——m .
—__— I404“ WWW" J> —_ W
_ min 50 m 50 .
70‘6" "MW“
«loo Page 9 of 11 NAME JOlmh‘onS _
27. What is the EMV for Option 1 in the following decision table? States of Nature _—
15,000 20,000 Optionz
A) 15,000 EMVCH : 0.305, 000) +0.1 (20/ 000)
El 3:388 14.500 +14, 000
e) $3388 ‘ mI‘D" 28. According to the AHP synthesization in SuperDecisions, which of the following is the best choice
of flight connections for a trip out West? WW WIWMWWWznwmaamw iw amﬁ’tﬁyrgmwwr
2 ermmgmaﬁm a: Cleveland to Seattle
= Cleveland to Vancouver
C) Pittsburgh to Seattle
D) Pittsburgh to Vancouver 29. The layout strategy that deals with lowvolume, high—variety production is
A) fixedposition layout
B) retail layout
C) warehouse layout
D) office layout @ none of the above 30. "A special arrangement of machinery and equipment to focus on production of a single product
or group of related products” describes what layout type?
A) fixed—position layout
B) intermittent production C focused factory
D) work cell
warehouse layout Page 10 of 11 NAME Jaw/Hons 31. For which of the following operations would a fixed—position layout be most appropriate?
A) assembling automobiles producing TV sets
C constructing a highway tunnel or bridge D) refining of crude oil
E) running an insurance agency 32. One factor impacting the fixedposition layout strategy is
A) minimizing difficulties caused by material flow varying with each product
B) requiring frequent contact close to one another
C) the provision of lowcost storage with lowcost material handling
the movement of material to the limited storage areas around the site
) balancing product flow from one work station to the next 33. The typical goal used when developing a processoriented layout strategy is to
A minimize the distance between adjacent departments
minimize the material handling costs
C) maximize the number of different tasks which can be performed by an individual
machine 7
D) minimize the level of operator skill necessary
E) maximize job specialization 34. Balancing low—cost storage with lowcost material handling is important in a(n)
A) fixedposition layout
B) process oriented layout
C) office layout
repetitive and product o—riented layout @warehouse layout 35. A process layout problem consists of4 departments, each of which can be assigned to one of
four rooms. The number of different solutions to this problem is , although all of
them may not have different material handling costs. B) 4 ’4‘. ‘r 431] ’3 34 Page 11 of 11 ...
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