Midterm
Mock Exam 2070 Fall 2021
1. Quality Index can be best described as the ratio of goods sold divided by the costs to get them
in a saleable state:
True or False
2. _____________ failure costs include cost of dealing with consumer complaints, costs of
replacing return product and the costs of litigation (legal defense)
A. System
B. Employee
C. Process
D. External
E. Internal
3. Determining the number, location and capacity of facilities would be considered as a tactical
decision?
True or False
4. Statistical Control Limit Methods
A. List and name them
B. What is an x‐bar chat and why is it called x‐bar?
C. What are the upper and lower control limits in an x‐bar chart if you are not given a value for
the standard deviation of the process?
D. What is the difference between a p‐chart and a c‐chart?
• What makes them different from all of the other SPC methods?
5. The purpose of control charts is BEST described as being to:
A. Estimate the proportion of output that is acceptable
B. Weed out defective items
C. Determine if the output is within specifications/specifications
D. Distinguish between random variation and assignable variation in the process
E. All of these
6. Make‐or‐buy decisions (aka Outsourcing) are made because of all but which of the following:
A. Price
B. Expertise
C. Patent Requirements
D. Over capacity facilities
E. Quality
7. A local fish food company would like to put 850 tonnes of trout food into storage in
anticipation of some future demand spikes. Which process type would be best suited for this
purpose?
A. Batch
B. Continuous
C. Project (Job Shop)
D. Repetitive Process
E. Any of the above
8. Which of the following is NOT an element of TQM?
A. Continuous improvement
B. Quality at the source
C. Top‐down centralized management authority
D. Customer’s voice in the decision making process
E. All of the choices are elements
9. The Quality Productivity Ratio measures:
A. Cost of inputs relative to the costs of processing
B. Total production (units) per the costs of inputs
C. Total manufacturing costs as a proportion of yield
D. Number of saleable goods divided by manufacturing costs per unit
E. None of the above
10. Which of the following is NOT an assumption of the break‐even model?
A. One product is involved
B. Everything that is produced can be sold
C. Total variable cost is the same regardless of volume
D. Fixed costs do not change with volume changes
E. Revenue per unit is the same regardless of volume
11. p‐chart calculation in quality control management is BEST described as the:
A. Percentage of defects in single unit samples
B. Number of defects in single unit samples
C. Number of defects found in a group of samples
D. The calculation of upper and lower control limits based upon the average number of
defects in multiple samples
E. None of the above
12. The quality control improvement tool which resembles a "fishbone" is:
A. Run charts
B. Check sheets
C. Pareto analysis
D. Cause‐and‐effect diagrams
E. Taguchi charts
13. Which statement is an accurate description of a process that is ``capable``?
A. No process variability is evident
B. Process variability is less than variation allowed by design specifications
C. Process variability is greater than variation allowed by design specifications
D. Assignable variation is less than random variation
E. Assignable variation is greater than random variation
14. At the break‐even point:
A. Output equals capacity
B. Total costs equal total profit
C. Variable cost equals fixed cost
D. Variable cost equals total revenue
E. Total costs equal total revenue
15. If a crew processed 560 insurance forms using 2400 labour hours last week after processing
480 forms with 2000 hours the previous week, then labour productivity in forms per hour
over the two‐‐‐week period:
A. Rose to 0.240
B. Rose to 4.285
C. Fell to 4.167
D. Fell to 0.233
E. Stayed at 0.240
480/2000 = 0.24 560/2400 = 0.23
16. Across 13 samples of 200 MRIs, 0.96% of the MRIs were flawed. What is the relevant
chart’s 2‐sigma LCL?
A. ‐0.004
B. 0.004
C. 0.096
D. 0.000
E. 0.234
p‐bar = .0096
σ p‐bar = √[(p‐bar(1 – p‐bar)/n] = √[(.0096‐bar(1 – .0096)/200] = .00689
LCL = p‐bar – 2std dev(p‐bar) = .0096 – 2(.00689) = ‐0.004 (which is impossible)
17. The daily average number of complaints to the company’s service desk is 7.86. If 16 complaints
were received yesterday, is the process to minimize consumer complaints in control?
A. Yes for 3 sigma limits
B. No for 3 sigma limits
C. Yes for 2 sigma limits
D. No for 2 sigma limits
UCL = 7.86 + 3(2.8) = 16.26
UCL = 7.86 + 2(2.8) = 13.46
18. The Elora Cake Company takes quality control of its products seriously. Historical data on the
weight of their Double Chocolate Pyramid Cake has a grand mean of 875 grams with a
standard deviation of 45 grams. If they typically take 25‐cake samples, what three sigma
control limits should they be using as part of their ongoing QC programme?
A. {902, 848}
B. {915, 867}
C. {858, 812}
D. {875, 830}
E. None of the above
Grand Mean = 875 grams
St Dev of the process is 45 Therefore St Dev of the sample means = Std Dev Process/√n = 45/5 = 9
UCL = GM + 3(Std Dev of means distribution) = 875 + 3(9) = 902
LCL = GM – 3 (Std Dev of means distribution) = 875 ‐ 3(9) = 848
19. What is the appropriate capability measure (and what is its value) for a process with
(mean, σ) = (0.03, 0.003) if the design specification is 0.02 to 0.04?
A. 1.11
B. 1.00
C. 0.50
D. 0.91
E. 0.95
Cp = (UDL – LDL)/(6 Std Dev of the Process) = (.04 ‐ .02)/6(.003) = 1.11
20. The Salem Bread Company has decided to introduce a new line of bread crumbs that have
been designed to be sold in 450‐gram plastic bags with a tolerance of + 25 grams. If the
process has been monitored and found to have an average net weight of 427.6 grams with a
standard deviation of 6.8 grams, is the current process capable?
*PM = Process Mean
Cpk = min {(UDL – PM)/(3 Std Dev of the Process), (PM – LDL)/( 3 Std Dev of the Process)
= min [(475 – 427.5)/20.4, (427.5 – 425)/20.4} = {2.33,0.13}
Therefore, process is not capable
21. The Elora Brush Company (EBC) produces paint brushes for the commercial house painting
industry. Their latest model, the Super Swiper, must go through a four‐stage sequential
manufacturing process with individual yields of 0.95, 0.92, 0.87 & 0.95, respectively. If one of
their best distributors has ordered 500 brushes that must be manufactured and ready for
shipment by the end of the month, how many brushes must be started at the beginning the
production cycle?
A. 500
B. 586
C. 577
D. 692
E. 614
Yield = INS (Y1)(Y2)(Y3)(Y4)
500 = INS (.95)(.92)(.87)(.95) = ~ 693
22. The Elora Furniture Company (EFC) sells kitchen tables and chairs. The operations manager has
a choice of either making the chairs they need or simply buying them from the Alma Chair
Factory at a cost of $ 25 each. Demand is 35,000 chairs per year. EFC has estimated variable
costs of producing their own chairs at $ 5 each. In addition, they will need to invest $ 525,000
annually for fixed costs. At what point are they indifferent between buying the chairs from
Alma and making them themselves?
a) 26,250
b) 25,600
c) 14,585
d) 12,550
e) None of the Above
Q(25) = 525,000 + Q(5)
Q = 26,250
23. Peter Paddler, the owner of the Salem Canoe Company, needs to relocate the firm and must
decide between five different locations. Peter knows that locating in different places will have
different levels of productive capacity. If canoes sell for $ 285 each and given the information
in the following table, where should he locate, if forecast demand is 495 canoes?
Productive
Location Fixed Cost Variable Cost
Capacity
A 45,000 80 450
B 57,500 40 700
C 62,500 35 900
D 54,500 85 500
E 60,000 38 525
YOU REALLY HAD TO BE THERE!
24. The Elora Bowling Ball Company has designed a new bowling pin, which they have aptly
named the Strike Master I. Production data has shown an 89% yield on recent runs with only
55% of off spec output suitable for rework. If the initial starting quantity is 500 bowling balls,
the direct manufacturing charge is $65 and the cost to rework their off–spec production is
$32, what is their current QPR?
QPR = # Good Units Produced/Total Costs
= [500(.89) + 500(1 ‐ .89) (.55)]/[500($65) + 500(1 ‐ .89) (.55) ($32)
= (445 + 30.25)/(32,500 + 968)
= 0.014 (100)
= 1.4
25. Process time at a workstation is monitored using sample means and range control charts. Six
samples of 5 observations have been obtained and the sample mean and ranges have been
calculated and reported in minutes. They are shown in the table below:
a) Calculate the upper and lower mean control limits
b) Calculate upper and lower range control limits and comment on whether or not the
process is in control
Sample 1 2 3 4 5 6
Mean 3.06 3.15 3.11 3.13 3.06 3.09
Range .42 .50 .41 .46 .46 .45
Grand Mean (x – bar bar) = (3.06 + 3.15 + 3.11 + 3.13 + 3.06 + 3.09)/6 = 3.1
R‐bar = (.42 + .50 + .41 + .46 + .46 + .45))/6 = .45
Means Method UCL = GM + A2R‐bar = 3.1 + 0.48(0.45) = 3.316
LCL = GM – A2R‐bar = 3.1 – 0.48(0.45) = 2.884
Range Method UCL = D4R‐bar = 2.00(.45) = 0.9
LCL = D3R‐bar = 0(.45) = 0
Process is in control by both measures