Professional Documents
Culture Documents
Solved Problems in Industrial Quality Control 20131
Solved Problems in Industrial Quality Control 20131
2013
2013
II. Productivity
Output
Productivity = ----------------Input
Yield = (Total Input) (%Good Units) + (Total Input) (1 %Good Units) (%Reworked)
Yield = (I) (%G) + (I) (1 %G) (%R)
Where
I = planned number of units of product started in the production process
%G = percentage of good units produced
%R = percentage of defective units that are successfully reworked
(Direct Manufacturing Cost per Unit)(Input) + (Rework Cost per Unit)(Reworked Units)
Product Cost = -------------------------------------------------------------------------------------------------------------------Yield
(Kd)(I) + (Kr)(R)
Product Cost = ---------------------------------------------Y
Where
Kd = direct manufacturing cost per unit
I = input
Kr = rework cost per unit
R = reworked units
Y = yield
2|P a g e
p (1 p)
--------------------n
n = sample size
Therefore,
UCL = p + z
3|P a g e
p (1 p)
--------------------n
2013
LCL = p - z
p (1 p)
--------------------n
c-Chart
UCL = c + zc
LCL = c - zc
Where
Total Number of Defects
c = --------------------------------------------Number of Samples
UCL = c + z
LCL = c z
4|P a g e
2013
2013
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
1.88
1.02
0.73
0.58
0.48
0.42
0.37
0.34
0.31
0.29
0.27
0.25
0.24
0.22
0.21
0.20
0.19
0.19
0.18
0.17
0.17
0.16
0.16
0.15
3.27
2.57
2.28
2.11
2.00
1.92
1.86
1.82
1.78
1.74
1.72
1.69
1.67
1.65
1.64
1.62
1.61
1.60
1.59
1.58
1.57
1.56
1.55
1.54
VII. Reliability
Rule 1: If two or more events are independent and success is defined as the probability that all of the
events occur, then the probability of success is equal to the product of the probabilities of the events.
Rule 2: If two events are independent and success is defined as the probability that at least one of the
events will occur, the probability of success is equal to the probability of either one plus 1.00 minus that
probability multiplied by the other probability.
Rule 3: If two or more events are involved and success is defined as the probability that at least one of
them occurs, the probability of success is 1 P (all fail).
5|P a g e
2013
e = 2.7183
T= Length of service before failure
MTBF = Mean time between failures
The probability that failure will occur before time T is:
-T/MTBF
P(failure befire T) = 1 e^
2. Normal Distribution
To obtain a probability that service life will not exceed some value T, compute z and refer to normal
distribution table.
T Mean wear-out time
z = -------------------------------------------------------------Standard deviation of wear-out time
To find the reliability for time T, subtract this probability from 100 percent. To obtain the value of T that will
provide a given probability, locate the nearest probability under the curve to the left of the normal
distribution table. Then use the corresponding z in the preceding formula and solve for T.
Availability
It measures the fraction of time a piece of equipment is expected to be operational (as opposed to being
down for repairs). It is a function of both the mean time between failures and the mean time to repair. The
availability factor can be computed using the following formula:
MTBF
Availability = --------------------------------MTBF MTR
Where
MTBF = Mean time before failures
MTR = Mean time to repair
6|P a g e
2013
7|P a g e
2013
ANSWER SHEET 1
PROBLEMS IN INDUSTRIAL QUALITY CONTROL - QUALITATIVE
NAME: _____________________________________
1. _______
21. _________
41. _________
2. _______
22. _________
42. _________
3. _______
23. _________
43. _________
4. _______
24. _________
44. _________
5. _______
25. _________
45. _________
6. _______
26. _________
46. _________
7. _______
27. _________
47. _________
8. _______
28. _________
48. _________
9. _______
29. _________
49. _________
10. _______
30. _________
50. _________
11. _______
31. _________
12. _______
32. _________
13. _______
33. _________
14. _______
34. _________
15. _______
35. _________
16. _______
36. _________
17. _______
37. _________
18. _______
38. _________
19. _______
39. _________
20. _______
40. _________
SCORE: __________
PASSING RATE: 75%
8|P a g e
DATE: ____________________
2013
b. Functional Design
d. Modular Design
b. Dimensions of Quality
d. Fitness for Use
3. The probability of accepting a lot in which the fraction of defective items exceeds the most the
consumer is willing to accept.
a. Consumers Risk
c. Producers Risk
b. Standardization
d. Quality Function Deployment
5. An author of the book Quality Is Free who emphasized that the costs of poor quality far outweigh the
cost of preventing poor quality.
a. Armand Feigenbaum
c. Philip Crosby
b. W.E. Deming
d. Joseph Juran
7. It is the range of natural variability in a process essentially what we measure with control charts. The
inherent variability of process output relative to the variation allowed by the design specification.
a. Random Test
c. Pattern Test
b. Conformance Test
d. Process Capability
8. Engineering analysis performed at a computer terminal with information from CAD database.
a. Computer-Aided Design
c. Design for Assembly
9. Costs incurred when poor quality products are discovered before they are delivered to the customer
that includes scrap, rework, process failure, downtime, and price reductions
a. Quality Planning Costs
c. Internal Failure Costs
b. Appraisal Costs
d. Process Costs
b. Tree Diagram
d. Failure Mode and Effects Analysis
2013
b. Index Number
d. Yield
13. Carefully dismantling and inspecting a competitors product to look for design features that can be
incorporated into your own product.
a. Concurrent Engineering
c. Value Engineering
b. Reverse Engineering
d. Materials Engineering
14. A type of control chart that uses the actual number of defects per item in a sample is called
a. x-Chart
c. c-Chart
b. R-Chart
d. p-Chart
15. A set of procedures for reducing the number of parts in an assembly, evaluating methods of
assembly, and determining an assembly sequence.
a. Line Balancing
c. Design for Assembly
b. Assembly Chart
d. Design for Manufacturing
16. It can indicate an out-of-control process even if sample values are within control limits
a. Pattern
c. Zone
b. Run
d. Trend
17. The mixture of physical items, sensual benefits, and psychological benefits provided to the customer.
a. Product Mix
c. Suggestion Scheme
b. Service Package
d. Voice of the Customer
19. An author and consultant on quality who focused on strategic quality planning that determines the
product quality level and designs the production process to achieve the quality characteristics of the
product.
a. Armand Feigenbaum
c. Philip Crosby
b. W.E. Deming
d. Joseph Juran
20. It is accepting or rejecting a production lot based on the number of defects in a sample is called
a. Sampling
c. Sampling Plan
10 | P a g e
b. Acceptance Sampling
d. Sampling Distribution
2013
b. Conformance
d. Serviceability
22. A structured process that translates the voice of the customer into technical design requirements.
a. Quality Function Deployment
c. Matrix Diagram
b. Customer Survey
d. Perceptual Map
23. The expected number of defective items that will pass on to the customer with a sampling plan
a. Acceptance Quality Level
c. Sigma Limits
24. It is how well the product or service does what is supposed to.
a. Quality of Design
c. Quality of Conformance
b. Dimensions of Quality
d. Fitness for Use
25. The maximum percentage defective items in a lot that the consumer will knowingly accept.
a. Consumers Risk
c. Producers Risk
26. Combining standardized building blocks or modules in a variety of ways to create unique finished
products.
a. Form Design
c. Robust Design
b. Functional Design
d. Modular Design
27. A graph that measures the probability of accepting a lot for different proportions of defective items.
a. Histogram
c. Control Chart
b. Scatter Diagram
d. Operating Characteristic Curve
b. Conformance
d. Serviceability
29. A software system that uses computer graphics to assist in the creation, modification, and analysis of
a design.
a. Computer-Aided Design
c. Design for Assembly
30. A type of control chart that uses the proportion of defective items in a sample as the sample statistic is
called
a. x-Chart
c. c-Chart
11 | P a g e
b. R-Chart
d. p-Chart
2013
31. Designing a product from material that can be a recycled or easily repaired rather than discarded.
a. Ergonomics
c. Design for Material
b. Value Analysis
d. Design for Environment
32. Are the costs of measuring, testing, and analyzing materials, parts, products, and the productive
process to ensure that product quality specifications are being met.
a. Quality Planning Costs
c. Internal Failure Costs
b. Appraisal Costs
d. Process Costs
33. A systematic approach for analyzing the cause and effects of product failures.
a. Cause and Effect Diagram
c. Fault Tree Analysis
b. Tree Diagram
d. Failure Mode and Effects Analysis
b. Variable
d. Quality
35. The phase of product design concerned with how the product looks.
a. Form Design
c. Robust Design
b. Functional Design
d. Proto-typing
36. The phase of product design concerned with how the product performs.
a. Form Design
c. Robust Design
b. Functional Design
d. Modular Design
37. He introduced total quality control to reflect a total commitment of effort from management and
employees throughout an organization to improve on quality.
a. Armand Feigenbaum
c. Philip Crosby
b. W.E. Deming
d. Joseph Juran
38. The ratio of quality cost to manufacturing cost is called -a. Cost Index
c. Labor Index
b. Production Index
d. Productivity Index
39. A visual method for comparing customer perceptions of different products or services.
a. Quality Function Deployment
c. Matrix Diagram
b. Customer Survey
d. Perceptual Map
40. The probability that a given part or product will perform its intended function for a specified period of
time under normal conditions of use.
a. Maintainability
c. Durability
12 | P a g e
b. Reliability
d. Serviceability
2013
b. Reliability
d. Serviceability
42. Making sure the product or service is produced according to design is called
a. Quality of Design
c. Quality of Conformance
b. Dimensions of Quality
d. Fitness for Use
b. Standardization
d. Quality Function Deployment
b. Sigma Limits
d. Control Limits
45. An analytical approach for eliminating unnecessary design features and functions.
a. Value Analysis
c. Simplification
b. Standardization
d. Quality Function Deployment
46. It determines if the observations within the limits of a control chart display a nonrandom pattern.
a. Random Test
c. Pattern Test
b. Conformance Test
d. Process Capability
b. Conformance
d. Serviceability
b. Run
d. Trend
49. How long the product lasts; its life span before replacement.
a. Maintainability
c. Durability
b. Reliability
d. Serviceability
50. Finding the best-in-class product or process, measuring ones performance against it, and making
recommendations for improvements based on the results.
a. Quality Function Deployment
c. Kaizen
b. Benchmarking
d. Value Analysis
51. A range of acceptable values established by engineering design or customer requirements in which
individual units of output must fall in order to be acceptable.
a. Control Limits
c. Process Variability
13 | P a g e
b. Specifications
d. Process Capability
2013
52. It reflects the natural or inherent (i.e. random) variability in a process and it is measured in terms of
the process standard deviation.
a. Control Limits
c. Process Variability
14 | P a g e
b. Specifications
d. Process Capability
2013
b. Functional Design
d. Modular Design
b. Dimensions of Quality
d. Fitness for Use
b. Standardization
d. Quality Function Deployment
Answer: b. Standardization
5. An author of the book Quality Is Free who emphasized that the costs of poor quality far outweigh the
cost of preventing poor quality.
a. Armand Feigenbaum
c. Philip Crosby
b. W.E. Deming
d. Joseph Juran
15 | P a g e
b. Conformance Test
d. Process Capability
2013
8. Engineering analysis performed at a computer terminal with information from CAD database.
a. Computer-Aided Design
c. Design for Assembly
b. Appraisal Costs
d. Process Costs
b. Tree Diagram
d. Failure Mode and Effects Analysis
b. Index Number
d. Yield
Answer: d. Yield
12. Designing a product so that it can be produced easily and economically.
a. Design for Assembly
c. Design for Manufacture
b. Reverse Engineering
d. Materials Engineering
b. R-Chart
d. p-Chart
Answer: c. c-Chart
15. A set of procedures for reducing the number of parts in an assembly, evaluating methods of
assembly, and determining an assembly sequence.
a. Line Balancing
c. Design for Assembly
16 | P a g e
b. Assembly Chart
d. Design for Manufacturing
2013
b. Run
d. Trend
Answer: a. Pattern
17. The mixture of physical items, sensual benefits, and psychological benefits provided to the customer.
a. Product Mix
c. Suggestion Scheme
b. Service Package
d. Voice of the Customer
b. W.E. Deming
d. Joseph Juran
b. Acceptance Sampling
d. Sampling Distribution
b. Conformance
d. Serviceability
Answer: c. Performance
22. A structured process that translates the voice of the customer into technical design requirements.
a. Quality Function Deployment
c. Matrix Diagram
Answer: a. Quality Function Deployment
17 | P a g e
b. Customer Survey
d. Perceptual Map
2013
23. The expected number of defective items that will pass on to the customer with a sampling plan.
a. Acceptance Quality Level
c. Sigma Limits
b. Dimensions of Quality
d. Fitness for Use
b. Functional Design
d. Modular Design
b. Scatter Diagram
d. Operating Characteristic Curve
b. Conformance
d. Serviceability
Answer: b. Conformance
29. A software system that uses computer graphics to assist in the creation, modification, and analysis of
a design.
a. Computer-Aided Design
c. Design for Assembly
b. R-Chart
d. p-Chart
2013
Answer: d. p-Chart
31. Designing a product from material that can be a recycled or easily repaired rather than discarded.
a. Ergonomics
c. Design for Material
b. Value Analysis
d. Design for Environment
b. Appraisal Costs
d. Process Costs
b. Tree Diagram
d. Failure Mode and Effects Analysis
b. Variable
d. Quality
Answer: c. Attribute
35. The phase of product design concerned with how the product looks.
a. Form Design
c. Robust Design
b. Functional Design
d. Proto-typing
b. Functional Design
d. Modular Design
19 | P a g e
b. W.E. Deming
d. Joseph Juran
2013
38. The ratio of quality cost to manufacturing cost is called -a. Cost Index
c. Labor Index
b. Production Index
d. Productivity Index
b. Customer Survey
d. Perceptual Map
b. Reliability
d. Serviceability
Answer: b. Reliability
41. The ease with which a product is maintained or repaired.
a. Maintainability
c. Durability
b. Reliability
d. Serviceability
Answer: a. Maintainability
42. Making sure the product or service is produced according to design is called
a. Quality of Design
c. Quality of Conformance
b. Dimensions of Quality
d. Fitness for Use
b. Standardization
d. Quality Function Deployment
Answer: c. Simplification
44. The fraction of defective items deemed acceptable in a lot.
a. Tolerances
c. Acceptable Quality Level
b. Sigma Limits
d. Control Limits
b. Standardization
d. Quality Function Deployment
2013
46. It determines if the observations within the limits of a control chart display a nonrandom pattern.
a. Random Test
c. Pattern Test
b. Conformance Test
d. Process Capability
b. Conformance
d. Serviceability
Answer: a. Features
48. It is a sequence of sample values that display the same characteristic.
a. Pattern
c. Zone
b. Run
d. Trend
Answer: b. Run
49. How long the product lasts; its life span before replacement.
a. Maintainability
c. Durability
b. Reliability
d. Seviceability
Answer: c. Durability
50. Finding the best-in-class product or process, measuring ones performance against it, and making
recommendations for improvements based on the results.
a. Quality Function Deployment
c. Kaizen
b. Benchmarking
d. Value Analysis
Answer: b. Benchmarking
51. A range of acceptable values established by engineering design or customer requirements in which
individual units of output must fall in order to be acceptable.
a. Control Limits
c. Process Variability
b. Specifications
d. Process Capability
Answer: b. Specifications
52. It reflects the natural or inherent (i.e. random) variability in a process and it is measured in terms of
the process standard deviation.
a. Control Limits
c. Process Variability
Answer: c. Process Variability
21 | P a g e
b. Specifications
d. Process Capability
2013
ANSWER SHEET 2
PROBLEMS IN INDUSTRIAL QUALITY CONTROL - QUANTITATIVE
NAME: _____________________________________
1. _______
21. _________
41. _________
2. _______
22. _________
42. _________
3. _______
23. _________
43. _________
4. _______
24. _________
44. _________
5. _______
25. _________
45. _________
6. _______
26. _________
46. _________
7. _______
27. _________
47. _________
8. _______
28. _________
48. _________
9. _______
29. _________
49. _________
10. _______
30. _________
50. _________
11. _______
31. _________
12. _______
32. _________
13. _______
33. _________
14. _______
34. _________
15. _______
35. _________
16. _______
36. _________
17. _______
37. _________
18. _______
38. _________
19. _______
39. _________
20. _______
40. _________
SCORE: __________
PASSING RATE: 75%
22 | P a g e
DATE: ____________________
2013
1995
1996
Year
1997
1998
1999
$3.2
26.3
39.1
118.6
10.7
29.2
51.3
110.5
28.3
30.6
48.4
105.2
42.6
24.1
35.9
91.3
50.0
19.6
32.1
65.2
Compute the companys total failure costs as a percentage of total quality costs for all of the five years.
a. 58.3%
c. 72.5%
b. 65.6%
d. 80.2%
2. In reference to problem no. 1, compute the total prevention cost, as a percentage of total costs, during
all of the five years.
a. 5.3%
c. 22.0%
b. 14.0%
d. 30.0%
3. In reference to problem no. 1, compute the total appraisal cost, as a percentage of total costs, during
all of the five years.
a. 13.5%
c. 12.4%
b. 14.5%
d. 11.7%
4. In reference to problem no. 1, compute the total quality-sales index for all of the five years.
a. 5.8
c. 9.1
b. 7.0
d. 11.0
5. In reference to problem no. 1, compute the total quality-cost index for all of the five years.
a. 38.3
c. 45.0
b. 44.4
d. 47.6
6. The Dominique House Furniture Company manufactures two-drawer oak file cabinets that are sold
unassembled through catalogs. The company initiates production of 150 cabinet packages each week.
The percentage of good-quality cabinets averages 83 percent per week, and the percentage of poorquality cabinets that can be reworked is 60 percent. Determine the weekly product yield of file cabinets.
a. 125
c. 135
23 | P a g e
b. 130
d. 140
2013
7. In reference to problem no. 6, if the company desires a product yield of 145 units per week, what
increase in the percentage of good-quality products must result?
a. 90%
c. 94%
b. 92%
d. 96%
8. The Alberto Shoe Company manufactures a number of different styles of athletic shoes. Its biggest
seller is a running shoe. In 1997, Alberto implemented a quality management program. The companys
shoe production for the past three years and manufacturing costs are as follows:
1997
32000
$278000
78%
Year
1998
34600
291000
83%
1999
35500
305000
90%
Only one quarter of the defective shoes can be reworked, at a cost of $2.00 a piece. Compute the
manufacturing cost per good product for year 1997.
a. 8.56
c. 10.54
b. 9.65
d. 11.45
9. In reference to problem no.8, indicate the annual percentage increase or decrease resulting from the
quality management program from 1997 to 1998.
a. 10.2%
c. 8.7%
b. -9.1%
d. -7.6%
10. In reference to problem no. 8, compute the manufacturing cost per good product for year 1999.
a. 8.8
c. 10.2
b. 9.40
d. 11.6
11. In reference to problem no. 8, indicate the annual percentage increase or decrease resulting from the
quality management program from 1998 to 1999.
a. -3.9%
c. -5.2%
b. 4.5%
d. 6.6%
12. The total processing cost for producing the running shoe in Problem no. 8 is $18. The Alberto Shoe
Company starts production of 650 pairs of the shoes weekly, and the average weekly yield is 90 percent,
with 10 percent defective shoes. One quarter of the defective shoes can be reworked at a cost of $3.75.
Compute the quality-productivity ratio (QPR).
a. 3.1
c. 5.1
b. 4.1
d. 6.1
13. In reference to problem no. 12, compute the QPR if the production rate is increased to 800 pairs of
shoes per week.
a. 3.1
c. 5.1
24 | P a g e
b. 4.1
d. 6.1
2013
14. In reference to problem no. 12, compute the QPR if the processing cost is reduced to $16.50 and the
rework cost to $3.20.
a. 5.6
c. 7.2
b. 6.5
d. 8.3
15. In reference to problem no. 12, compute the QPR if the product yield is increased to 93 percent good
quality.
a. 7.6
c. 6.3
b. 5.7
d. 5.2
16. Bellphone, Inc. manufactures cellular telephones at processing cost of $47 per unit. The company
produces an average of 250 phones per week and has a yield of 87 percent good-quality phones,
resulting in 13 percent defective phones, all of which can be reworked. The cost of reworking a defective
telephone is $16. Compute the quality-productivity ratio (QPR).
a. 2.0
c. 4.0
b. 3.0
d. 5.0
17. In reference to problem no. 16, compute the QPR if the company increased the production rate to 320
phones per week while reducing the processing cost to $42, reducing the rework cost to $12, and
increasing the product yield of good-quality telephones to 94 percent.
a. 2.3
c. 4.1
b. 3.5
d. 5.4
18. Burger Mondie is a fast-food restaurant that processes an average of 680 food orders each day. The
average cost of each order is $6.15. Four percent of the orders are incorrect and only 10 percent of the
defective orders can be corrected with additional food items at an average cost of $1.75. The remaining
defective orders have to be thrown out. Compute the average product cost.
a. 3.7
c. 5.3
b. 4.8
d. 6.4
19. In reference to problem no. 18 and in order to reduce the number of wrong orders, Burger Mondie is
going to invest in a computerized ordering and cash register system. The cost of the system will increase
the average order cost by $0.05 and will reduce defective orders to 1 percent. What is the annual net cost
effect of this quality-improvement initiative?
a. 30,390
c. 32,266
b. 31,189
d. 33,742
20. In reference to problem no. 18, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.
a. 13.7
c. 17.9
b. 15.7
d. 19.9
21. In reference to problem no. 19, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.
a. 14.0
c. 18.0
25 | P a g e
b. 16.0
d. 20.0
2013
22. A manufacturing company has a weekly product input of 1,700 units. The average percentage of
good-quality products is 83 percent. Of the poor-quality products, 60 percent can be reworked and sold
as good-quality products. Determine the weekly product yield.
a. 1,584.4
c. 1,783.1
b. 1,678.2
d. 1,821.3
23. A retail telephone catalog company takes catalog orders from customers and then sends the
complete orders to the warehouses to be filled. An operator processes an average of 45 orders per day.
The cost of processing an order is $1.15, and it costs $0.65 to correct an order that has been filled out
incorrectly by the operator. An operator averages 7 percent bad orders per day, all of which are reworked
prior to filling the customer order. Determine the quality-productivity ratio for an operator.
a. 77.53
c. 81.91
b. 79.34
d. 83.65
24. The Glorioso Jeans Company produces denim jeans. The company wants to establish a p-chart to
monitor the production process and maintain high quality. Glorioso believes that approximately 99.74
percent of the variability in the production process is random and thus should be within control limits,
whereas 0.26 percent of the process variability is not random and suggests that the process is out of
control. The company has taken 20 samples (one per day for 20 days), each containing 100 pairs of
jeans (n = 100), and inspected them for defects, the results of which are as follow.
Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
No. of Defectives
6
0
4
10
6
4
12
10
8
10
12
10
14
8
6
16
12
14
20
18
Proportion Defective
0.06
0.00
0.04
0.10
0.06
0.04
0.12
0.10
0.08
0.10
0.12
0.10
0.14
0.08
0.06
0.16
0.12
0.14
0.20
0.18
b. 0.15
d. 0.25
25. In reference to problem no. 24, compute the upper & lower control limits.
a. UCL = 0.230, LCL = 0.050
c. UCL = 0.170, LCL = 0.040
26 | P a g e
2013
26. The Great North Woods Clothing Company sells specialty outdoor clothing through its catalog. A
quality problem that generates customer complaints occurs when a warehouse employee fills an order
with the wrong items. The company has decided to implement a process control plan by inspecting the
ordered items after they have been obtained from the warehouse and before they have been packaged.
The company has taken 30 samples (during a 30-day period), each for 100 orders, and recorded the
number of defective orders in each sample.
Sample
Number of
Defectives
12
14
10
16
18
19
14
20
18
17
9
11
14
12
7
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Sample
Number of
Defectives
6
3
7
10
14
18
22
26
20
24
18
19
20
17
18
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
b. 0.15
d. 0.25
27. In reference to problem no. 26, compute the upper & lower control limits.
a. UCL = 0.258, LCL = 0.044
c. UCL = 0.289, LCL = 0.064
28. Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The
number of defective items in each sample were recorded as follows:
Sample
1
2
3
4
5
6
7
8
9
10
No. of Defectives
12
18
10
14
16
19
17
12
11
14
p
0.060
0.090
0.050
0.070
0.080
0.095
0.085
0.060
0.055
0.070
Sample
11
12
13
14
15
16
17
18
19
20
No. of Defectives
16
14
12
16
18
20
18
20
21
22
p
0.080
0.070
0.060
0.080
0.090
0.100
0.090
0.100
0.105
0.110
Management wants to develop a p-chart using 3 sigma limits. Estimate the proportion defective for the
total sample.
a. 0.06
c. 0.16
27 | P a g e
b. 0.12
d. 0.08
2013
29. In reference to problem no. 28, compute the upper & lower control limits.
a. UCL = 0.161, LCL = 0.014
c. UCL = 0.213, LCL = 0.014
30. The Valle Hotel has 240 rooms. The hotels housekeeping is responsible for maintaining the quality of
the rooms appearance and cleanliness. Each individual housekeeper is responsible for an area
encompassing 20 rooms. Every room in use is thoroughly cleaned and its supplies, toiletries, and so
on are restocked each day. Any defects that the housekeeping staff notices that are not part of the
normal housekeeping service are supposed to be reported to hotel maintenance. Every room is
briefly inspected each day by a housekeeping supervisor. However, hotel management also conducts
inspection tours at random for a detailed, thorough inspection for quality control purposes. The
management inspectors not only check for normal housekeeping service defects like clean sheets,
dust, room supplies, room literature, or towels, but also for defects like an inoperative or missing TV
remote, poor TV picture quality or reception, defective lamps, a malfunctioning clock, tears or stains
in the bedcovers or curtains, or a malfunctioning curtain pull. An inspection sample includes twelve
rooms i.e. one room selected at random from each of the twelve 20-room blocks serviced by a
housekeeper. Following are the results from fifteen inspection samples conducted at random during a
one-month period:
Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Number of Defects
12
8
16
14
10
11
9
14
13
15
12
10
14
17
15
The hotel believes that approximately 99 percent of the defects (corresponding to 3-sigma limits) are
caused by natural, random variations in the housekeeping and room maintenance service, with 1 percent
caused by nonrandom variability. They want to construct a c-chart to monitor the housekeeping service.
Compute for the sample defect estimate.
a. 10.87
c. 12.67
b. 11.92
d. 13.12
31. In reference to problem no. 30, compute the upper & lower control limits.
a. UCL = 24.34, LCL = 2.33
c. UCL = 25.65, LCL = 1.78
28 | P a g e
2013
32. The Great North Woods Clothing Company is a mail-order company that processes thousands of mail
and telephone orders each week. This is customer service number to handle customer order
problems, inquiries, and complaints. The company wants to monitor the number of customer calls that
can be classified as complaints. The total number of complaint calls the customer service department
has received for each of the last 30 weekdays are shown in the table. Construct a c-chart for this
process with 3-sigma control limits.
Day
Complaint
Calls
27
15
38
41
19
23
21
16
33
35
26
42
40
35
25
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Day
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Complaint
Calls
19
12
17
18
26
31
14
18
26
27
35
20
12
16
15
b. 22.75
d. 26.12
33. In reference to problem no. 32, compute the upper & lower control limits.
a. UCL = 39.65, LCL = 11.33
c. UCL = 39.65, LCL = 12.81
34. The Salvedia Tool Company produces slip-ring bearings which look like flat doughtnuts or washers.
They fit around shafts or rods, such as drive shafts in machinery or motors. In the production process
for a particular slip-ring bearing the employees have taken 10 samples (during a 10-day period) of 5
slip-ring bearings i.e. n = 5. The individual observations from each sample are shown as follows.
Sample k
1
2
3
4
5
6
7
8
9
10
1
5.02
5.01
4.99
5.03
4.95
4.97
5.05
5.09
5.14
5.01
2
5.01
5.03
5.00
4.91
4.92
5.06
5.01
5.10
5.10
4.98
3
4.94
5.07
4.93
5.01
5.03
5.06
5.10
5.00
4.99
5.08
4
4.99
4.95
4.92
4.98
5.05
4.96
4.96
4.99
5.08
5.07
5
4.96
4.96
4.99
4.89
5.01
5.03
4.99
5.08
5.08
4.99
The company wants to develop an R-chart to monitor the process variability. Compute for the average
range for the sample.
a. 0.149
c. 0.124
29 | P a g e
b. 0.137
d. 0.115
2013
35. In reference to problem no. 34, compute the upper & lower control limits.
a. UCL = 0.243, LCL = 0
c. UCL = 0.412, LCL = 0
36. In reference to problem no. 34, compute the overall process average.
a. 4.02
c. 6.03
b. 5.01
d. 7.02
37. In reference to problem no. 34, compute the upper & lower control limits for mean chart.
a. UCL = 5.08, LCL = 4.94
c. UCL = 7.13, LCL = 2.89
38. A machine at the Pacific Fruit Company fills boxes with raisins. The labeled weight of the boxes is 10
ounces. The company wants to construct an R-chart to monitor the filling process and make sure the
box weights are in control. The quality control department sampled five boxes every two hours for
three consecutive working days. The sample observations are in the table. Construct an R-chart from
these data with 3-sigma control limits.
Sample k
1
2
3
4
5
6
7
8
9
10
11
12
1
9.06
8.52
9.35
9.17
9.21
8.74
9.00
9.15
8.98
9.03
9.53
8.95
5
8.46
8.95
8.42
9.53
9.35
8.89
8.78
9.06
9.13
8.47
8.92
8.95
b. 0.574
d. 0.715
39. In reference to problem no. 38, compute the upper & lower control limits.
a. UCL = 1.243, LCL = 0
c. UCL = 1.212, LCL = 0
Answer: a. UCL = 1.212, LCL = 0
D3 = 0 and D4 = 2.11 for n = 5
UCL = 2.11(0.574) = 1.212
LCL = 0(0.574) = 0
30 | P a g e
2013
40. In reference to problem no. 38, compute the overall process average.
a. 8.997
c. 8.036
b. 9.012
d. 9.024
41. In reference to problem no. 38, compute the upper & lower control limits for mean chart.
a. UCL = 9.08, LCL = 8.66
c. UCL = 9.33, LCL = 8.89
42. Management is trying to decide defective rate, should be inspected. If it is not inspected, the 3
percent defectives will go through a product assembly phase and have to be replaced later. If all Part As
are inspected, one-third of the defectives will be found, thus raising the quality to 2 percent defectives.
If inspection is done and the cost of inspecting is $0.01 per unit and the cost of replacing a defective in
the final assembly is $4.00. What is cost savings?
a. $0.02
c. $0.04
b. $0.03
d. $0.05
43. In reference to problem no. 42 and suppose the cost of inspecting is $0.05 per unit rather than $0.01.
Would you perform the inspection?
a. Yes
c. Maybe
b. No
d. No Answer
44. A company currently using an inspection in its material receiving department is trying to install an
overall cost reduction program. One possible reduction is the elimination of one of the inspection
positions. This position tests material that has a defective content on the average of 0.04. By
inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per
hour. Hourly rate including fringe benefits for this position is $9. If the inspection position is eliminate,
defects will go into product assembly and will have to be replaced later at a cost of $10 each when
they are detected in final product testing. Should this inspection position not be eliminated and how
much is the benefit (or loss) from the current inspection process?
a. Yes, Benefits of $5
c. No, Losses of $5
45. There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at
this point, all the errors can be detected and eliminated. However, the inspector is paid $8 per hour
and can inspect units in the process at the rate of 30 per hour. If no inspector is used and defects are
allowed to pass this point, there is a cost of $10 per unit to correct the defect later on. Should an
inspector be hired?
a. Yes, Savings of $3
c. No, Losses of $3
b. Yes, Savings of $1
d. No, Loss of $1
46. Suppose a room has two lamps, but to have adequate light both lamps must work (success) when
turned on. One lamp has a probability of working of 0.90 and the other has a probability of working of
0.80. What is the reliability of the system or the probability that both lamps will work?
a. 0.76
c. 0.72
31 | P a g e
b. 0.74
d. 0.70
2013
47. There are two lamps in a room. When turned on, one has a probability of working of 0.90 and the
other has a probability of working of 0.80. Only a single lamp is needed to light for success. If one
fails to light when turned on, the other lamp is turned on. Hence, one of the lamps is a backup in case
the other one fails. What is the reliability of the system or the probability of success that either lamp
will turn on?
a. 0.92
c. 0.96
b. 0.94
d. 0.98
48. Three lamps have probabilities of 0.90, 0.80, and 0.70 of lighting when turned on. Only one lighted
lamp is needed for success; hence, two of the lamps are considered to be backups. What is the
reliability of the system?
a. 0.992
c. 0.996
b. 0.994
d. 0.998
b. 0.964
d. 0.968
50. A product design engineer must decide if a redundant component is cost-justified in a certain system.
The system in question has a critical component with a probability of 0.98 of operating. System failure
would involve a cost of $20,000. For a cost of $100, a switch could be added that would automatically
transfer the system to the backup component in the event of a failure. What is the cost savings if a
backup is added with probability of 0.98?
a. $292
c. $296
b. $294
d. $298
51. Due to the extreme cost of interrupting production, a firm has two standby machines available in case
a particular machine breaks down. The machine in use has a reliability of 0.94, and the backups have
reliabilities of 0.90 and 0.80. In the event of a failure, either back up can be pressed into service. If
one fails, the other back up can be used. Compute the system reliability.
a. 0.9992
c. 0.9996
b. 0.9994
d. 0.9998
52. A hospital has three independent fire alarm systems, with reliabilities of 0.95, 0.97, and 0.99. In the
event of a fire, what is the probability that a warning would be given?
a. 0.999983
c. 0.999987
b. 0.999985
d. 0.999989
53. By means of extensive testing, a manufacturing has determined that its washing machine models
have an expected life that is exponential with a mean of four years. Find the probability that one of these
machines will have a life that ends after the initial four years of service.
a. 0.23
c. 0.47
b. 0.37
d. 0.63
54. In reference to problem 53, find the probability that one these machines will have a life that ends
before four years of service are completed.
a. 0.77
c. 0.53
32 | P a g e
b. 0.63
d. 0.37
2013
55. In reference to problem 53, find the probability that one these machines will have a life that ends not
before six years of service.
a. 0.22
c. 0.67
b. 0.33
d. 0.78
56. The mean life of a certain fan belt can be modeled using a normal distribution with a mean of six
years and a standard deviation of one year. Determine the probability that a fan belt will wear out before
seven years of service.
a. 0.58
c. 0.75
b. 0.61
d. 0.84
57. In reference to problem 56, determine the probability that a fan belt will wear-out after seven years of
service.
a. 0.42
c. 0.25
b. 0.39
d. 0.16
57. In reference to problem 56, determine the service life that will provide a wear-out probability of 10
percent.
a. 6.31
c. 4.72
b. 5.19
d. 3.64
58. A copier is able to operate for an average of 200 hours between repairs, and the mean repair time is
two hours. Determine the availability of the copier.
a. 0.61
c. 0.87
b. 0.76
d. 0.99
59. A weather satellite has an expected life of 10 years from the time it is placed into earth orbit,
Determine its probability of no wear-out before 20 years length of service. Assume the exponential
distribution is appropriate.
a. 0.08
c. 0.21
b. 0.14
d. 0.36
60. In reference to problem 59, what is the probability that the satellite will fail between 5 and 12 years
after being placed into earth orbit?
a. 0.30
c. 0.38
b. 0.35
d. 0.42
61. One line of radial tires produced by a large company has a wear-out life that can be modeled using a
normal distribution with a mean of 25,000 kilometers and a standard deviation of 2,000 kilometers.
Determine the percentage of tires that can be expected to wear-out within +-2,000 kilometers of the
average (i.e. between 23,000 kilometers and 27,000 kilometers).
a. 0.51
c. 0.74
33 | P a g e
b. 0.68
d. 0.82
2013
62. In reference to problem 61, for what life would you expect 4 percent of the tires to have worn out?
a. 22,500
c. 21,500
b. 22,100
d. 21,200
63. A manager has the option of using any one of three machines for a job. The machines and their
standard deviations are listed below and their specifications are 10.00mm and 10.80mm. Determine the
capability of machine A.
Machine
A
B
C
a. 0.39
c. 0.78
64. In reference to problem 63, compute the process capability ratio of machine B.
a. 0.83
c. 1.03
b. 0.96
d. 1.67
65. In reference to problem 64, which machine or machines is/ are capable?
a. Machine A
c. Machine C
b. Machine B
d. Machines A & B
66. A process has a mean of 9.20 grams and a standard deviation of 0.30 gram. The lower specification
limit is 7.50 grams and the upper specification limit is 10.50 grams. Compute C pk.
a. 1.89
c. 1.44
b. 1.98
d. 1.66
67. Determine which among the following processes is/ are capable.
Process
1
2
3
Mean
7.5
4.6
6.0
a. Process 1
b. Process 3
34 | P a g e
Standard Deviation
0.10
0.12
0.14
Lower Spec
7.0
4.3
5.5
b. Process 2
d. Processes 1 & 3
Upper Spec
8.0
4.9
6.7
2013
1995
1996
Year
1997
1998
1999
$3.2
26.3
39.1
118.6
10.7
29.2
51.3
110.5
28.3
30.6
48.4
105.2
42.6
24.1
35.9
91.3
50.0
19.6
32.1
65.2
Compute the companys total failure costs as a percentage of total quality costs for all of the five
years.
a. 58.3%
c. 72.5%
b. 65.6%
d. 80.2%
Answer: c. 72.5%
% total failure cost = [(internal failure + external failure)/ total quality cost] x 100
1995 = (157.7/ 187.2) x 100 = 84.24%
1996 = (161.8/ 201.7) x 100 = 80.22%
1997 = (153.4/ 212.5) x 100 = 72.28%
1998 = (127.2/ 193.9) x 100 = 65.60%
1999 = (97.3/ 166.9) x 100 = 58.30%
% total failure cost = [(157.7+161.8+153.4+127.2+97.3)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total failure cost = [(697.4)/(962.2)] x 100 = 72.50%
2. In reference to problem no. 1, compute the total prevention cost, as a percentage of total quality costs,
during all of the five years.
a. 5.3%
c. 22.0%
b. 14.0%
d. 30.0%
Answer: b. 14.0%
% total prevention cost = (prevention cost/ total cost) x 100
1995 = (3.2/ 187.2) x 100 = 1.71%
1996 = (10.7/ 201.7) x 100 = 5.30%
1997 = (28.3/ 212.5) x 100 = 13.32%
1998 = (42.6/ 193.9) x 100 = 21.97%
1999 = (50/ 166.9) x 100 = 29.96%
% total prevention cost = [(3.2+10.7+28.3+42.6+50)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total prevention cost = [(134.8)/(962.2)] x 100 = 14%
35 | P a g e
2013
3. In reference to problem no. 1, compute the total appraisal cost, as a percentage of total costs, during
all of the five years.
a. 13.5%
c. 12.4%
b. 14.5%
d. 11.7%
Answer: a. 13.5%
% total appraisal cost = (appraisal cost/ total cost) x 100
1995 = (26.3/ 187.2) x 100 = 14.04%
1996 = (29.2/ 201.7) x 100 = 14.48%
1997 = (30.6/ 212.5) x 100 = 14.40%
1998 = (24.1/ 193.9) x 100 = 12.43%
1999 = (19.6/ 166.9) x 100 = 11.74%
% total appraisal cost = [(26.3+29.2+30.6+24.1+19.6)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total appraisal cost = [(129.8)/(962.2)] x 100 = 13.50%
4. In reference to problem no. 1, compute the total quality-sales index for all of the five years.
a. 5.8
c. 9.1
b. 7.0
d. 11.0
Answer: b. 7.0
Total Quality Sales Index = (total quality cost/ sales) x 100
1995 = (187.2/ 2700.6) x 100 = 6.93
1996 = (201.7/ 2690.1) x 100 = 47.64
1997 = (212.5/ 2705.3) x 100 = 50.04
1998 = (193.9/ 2810.2) x 100 = 6.90
1999 = (166.9/ 2810.7) x 100 = 5.79
Total Quality Sales Index =
[(187.2+201.7+212.5+193.9+166.9)/(2700.6+2690.1+2705.3+2810.2+2810.7)] x 100 =
Total Quality Sales Index = [(962.2)/(13716.9)] x 100 = 7.0
5. In reference to problem no. 1, compute the total quality-cost index for all of the five years.
a. 38.3
c. 45.0
b. 44.4
d. 47.6
Answer: c. 45.0
Total Quality Cost Index = (Total Quality Cost/ Manufacturing Cost) x 100
1995 = (187.2/ 420.9) x 100 = 44.48
1996 = (201.7/ 423.4) x 100 = 47.64
1997 = (212.5/ 424.7) x 100 = 50.04
1998 = (193.9/ 436.1) x 100 = 44.46
1999 = (166.9/ 435.5) x 100 = 38.32
Total Quality Cost Index =
[(187.2+201.7+212.5+193.9+166.9)/(420.9+423.4+424.7+436.1+435.5)] x 100 =
Total Quality Cost Index = [(962.2)/(2140.6)] x 100 = 45.0
36 | P a g e
2013
6. The Dominique House Furniture Company manufactures two-drawer oak file cabinets that are sold
unassembled through catalogs. The company initiates production of 150 cabinet packages each week.
The percentage of good-quality cabinets averages 83 percent per week, and the percentage of poorquality cabinets that can be reworked is 60 percent. Determine the weekly product yield of file
cabinets.
a. 125
c. 135
b. 130
d. 140
Answer: d. 140
product yield = (total input)(% good units) + (total input)(1 - % good units)(% reworked)
product yield = 150(0.83) + 150(1 0.83)(0.60) = 139.8 ~ 140 units per week
7. In reference to problem no. 6, if the company desires a product yield of 145 units per week, what
increase in the percentage of good-quality products must result?
a. 90%
c. 94%
b. 92%
d. 96%
Answer: b. 92%
145 units per week = 150(% good units) + 150(1 - % good units)(0.60)
% good units = 91.67% = 92%
8. The Alberto Shoe Company manufactures a number of different styles of athletic shoes. Its biggest
seller is a running shoe. In 1997, Alberto implemented a quality management program. The companys
shoe production for the past three years and manufacturing costs are as follows:
1997
32,000
$278,000
78%
Year
1998
34,600
291,000
83%
1999
35,500
305,000
90%
Only one quarter of the defective shoes can be reworked, at a cost of $2.00 a piece. Compute the
manufacturing cost per good product for year 1997.
a. 8.56
c. 10.54
b. 9.65
d. 11.45
Answer: c. 10.54
Solution:
1997
Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked units)]/ yield
Product cost = {[(278,000/32000) x 32,000] + [2(1 0.78)(32,000)(0.25)]}/ [32000(0.78) + 32000(1
0.78)(0.25)] = $10.54
9. In reference to problem no.8, indicate the annual percentage increase or decrease in savings resulting
from the quality management program from 1997 to 1998.
a. 10.2%
c. 8.7%
37 | P a g e
b. 9.1%
d. 7.6%
2013
Answer: d. 7.6%
1998
Product cost = {[(291000/34600) x 34600] + [2(1 0.83)(34600)(0.25)]}/ [34600(0.83) + 34600(1
0.83)(0.25)] = $9.74
annual percentage increase or decrease resulting from the quality management program:
1997 vs. 1998
% increase/ decrease = [(10.54 9.74)/ 10.54] x 100 = 7.6%
10. In reference to problem no. 8, compute the manufacturing cost per good product for year 1999.
a. 8.8
c. 10.2
b. 9.40
d. 11.6
Answer: c. 9.40
1999
Product cost = {[(305000/35500) x 35500] + [2(1 0.90)(35500)(0.25)]}/ [35500(0.90) + 35500(1
0.90)(0.25)] = $9.36 = 9.4
11. In reference to problem no. 8, indicate the annual percentage increase or decrease in cost resulting
from the quality management program from 1998 to 1999.
a. -3.9%
c. -5.2%
b. 4.5%
d. 6.6%
Answer: a. -3.9%
1998 vs. 1999
% increase/ decrease = [(9.36 9.74)/ 9.74] x 100 = -3.90%
12. The total processing cost for producing the running shoe in Problem no. 8 is $18. The Alberto Shoe
Company starts production of 650 pairs of the shoes weekly, and the average weekly yield is 90
percent, with 10 percent defective shoes. One quarter of the defective shoes can be reworked at a
cost of $3.75. Compute the quality-productivity ratio (QPR).
a. 3.1
c. 5.1
b. 4.1
d. 6.1
Answer: c. 5.1
Solution:
QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x 100
QPR = {[650(0.90) + 650(0.10)(0.25)]/ [(650)(18)+650(0.10)(0.25)(3.75)]} x 100 = 5.11 = 5.1
13. In reference to problem no. 12, compute the QPR if the production rate is increased to 800 pairs of
shoes per week.
a. 3.1
c. 5.1
b. 4.1
d. 6.1
Answer: c. 5.1
QPR = {[800(0.90) + 800(0.10)(0.25)]/ [800(18)+800(0.10)(0.25)(3.75)]} x 100 = 5.11 = 5.1
38 | P a g e
2013
14. In reference to problem no. 12, compute the QPR if the processing cost is reduced to $16.50 and the
rework cost to $3.20.
a. 5.6
c. 7.2
b. 6.5
d. 8.3
Answer: a. 5.6
QPR = {[650(0.90) + 650(0.10)(0.25)]/ [650(16.50)+650(0.10)(0.25)(3.20)]} x 100 = 5.58 = 5.6
15. In reference to problem no. 12, compute the QPR if the product yield is increased to 93 percent good
quality.
a. 7.6
c. 6.3
b. 5.7
d. 5.2
Answer: d. 5.2
QPR = {[650(0.93) + 650(0.07)(0.25)]/ [650(18)+650(0.07)(0.25)(3.75)]} x 100 = 5.24
16. Bellphone, Inc. manufactures cellular telephones at processing cost of $47 per unit. The company
produces an average of 250 phones per week and has a yield of 87 percent good-quality phones,
resulting in 13 percent defective phones, all of which can be reworked. The cost of reworking a
defective telephone is $16. Compute the quality-productivity ratio (QPR).
a. 2.0
c. 4.0
b. 3.0
d. 5.0
Answer: a. 2.0
QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x 100
QPR = {[250(0.87) + 250(0.13)]/ [250(47)+250(0.13)(16)]} x 100 = 2.04 = 2.0
17. In reference to problem no. 16, compute the QPR if the company increased the production rate to 320
phones per week while reducing the processing cost to $42, reducing the rework cost to $12, and
increasing the product yield of good-quality telephones to 94 percent.
a. 2.3
c. 4.1
b. 3.5
d. 5.4
Answer: a. 2.3
Solution:
QPR = {[320(0.94) + 250(0.06)]/ [320(42)+320(0.06)(12)]} x 100 = 2.34 = 2.3
18. Burger Mondie is a fast-food restaurant that processes an average of 680 food orders each day. The
average cost of each order is $6.15. Four percent of the orders are incorrect and only 10 percent of
the defective orders can be corrected with additional food items at an average cost of $1.75. The
remaining defective orders have to be thrown out. Compute the average product cost.
a. 3.7
c. 5.3
Answer: d. 6.4
39 | P a g e
b. 4.8
d. 6.4
2013
Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked
units)]/ yield
Product cost = {[6.15 x 680] + [1.75(0.04)(680)(0.10)]}/ [680(0.96) + 680(0.04)(0.10)] = $6.39 =
6.4
19. In reference to problem no. 18 and in order to reduce the number of wrong orders, Burger Mondie is
going to invest in a computerized ordering and cash register system. The cost of the system will
increase the average order cost by $0.05 and will reduce defective orders to 1 percent. What is the
annual net cost effect of this quality-improvement initiative?
a. 30,390
c. 32,266
b. 31,189
d. 33,742
Answer: c. 32,266
Product cost = {[6.20 x 680] + [1.75(0.01)(680)(0.10)]}/ [680(0.99) + 680(0.01)(0.10)] = $6.26
Annual net cost effect/ savings = 6.39 6.26 = 0.13 x 680 orders per day x 365 days per year =
$32,266
20. In reference to problem no. 18, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.
a. 13.7
c. 17.9
b. 15.7
d. 19.9
Answer: b. 15.7
QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x
100
QPR = {[680(0.96) + 680(0.04)(0.10)]/ [680(6.15)+680(0.04)(0.10)(1.75)]} x 100 = 15.66 = 15.7
21. In reference to problem no. 19, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.
a. 14.0
c. 18.0
b. 16.0
d. 20.0
Answer: b. 16.0
QPR = {[680(0.99) + 680(0.01)(0.10)]/ [680(6.20)+680(0.01)(0.10)(1.75)]} x 100 = 15.98 = 16.0
22. A manufacturing company has a weekly product input of 1,700 units. The average percentage of
good-quality products is 83 percent. Of the poor-quality products, 60 percent can be reworked and
sold as good-quality products. Determine the weekly product yield.
a. 1,584.4
c. 1,783.1
b. 1,678.2
d. 1,821.3
Answer: a. 1,584.4
Y = (I)(%G) + (I)(1 %G)(%R) = (1,700)(0.83) + (1,700)(0.17)(0.60) = 1,584.4 units
40 | P a g e
2013
23. A retail telephone catalog company takes catalog orders from customers and then sends the
complete orders to the warehouses to be filled. An operator processes an average of 45 orders per
day. The cost of processing an order is $1.15, and it costs $0.65 to correct an order that has been
filled out incorrectly by the operator. An operator averages 7 percent bad orders per day, all of which
are reworked prior to filling the customer order. Determine the quality-productivity ratio for an
operator.
a. 77.53
c. 81.91
b. 79.34
d. 83.65
Answer: d. 83.65
Good-Quality Units
QPR = -------------------------------------------------------------------------------------------- X 100
(Input)(Processing Cost) + (Defective Units)(Rework Cost)
45
QPR = --------------------------------------------------------------- X 100
(45)(1.15) + (3.15)(0.65)
QPR = 83.65
24. The Glorioso Jeans Company produces denim jeans. The company wants to establish a p-chart to
monitor the production process and maintain high quality. Glorioso believes that approximately 99.74
percent of the variability in the production process is random and thus should be within control limits,
whereas 0.26 percent of the process variability is not random and suggests that the process is out of
control. The company has taken 20 samples (one per day for 20 days), each containing 100 pairs of
jeans (n = 100), and inspected them for defects, the results of which are as follow.
Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
No. of Defectives
6
0
4
10
6
4
12
10
8
10
12
10
14
8
6
16
12
14
20
18
Proportion Defective
0.06
0.00
0.04
0.10
0.06
0.04
0.12
0.10
0.08
0.10
0.12
0.10
0.14
0.08
0.06
0.16
0.12
0.14
0.20
0.18
41 | P a g e
b. 0.15
d. 0.25
2013
Answer: a. 0.10
Total Defectives
p = -----------------------------------------------------Total Sample Observations
200
p = ------------------------ = 0.10
20(100)
25. In reference to problem no. 24, compute the upper & lower control limits.
a. UCL = 0.230, LCL = 0.050
c. UCL = 0.170, LCL = 0.040
Number of
Defectives
12
14
10
16
18
19
14
20
18
17
9
11
14
12
7
Sample
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
42 | P a g e
b. 0.15
d. 0.25
Number of
Defectives
6
3
7
10
14
18
22
26
20
24
18
19
20
17
18
2013
453
p = ------------------------ = 0.151
30(100)
27. In reference to problem no. 26, compute the upper & lower control limits.
a. UCL = 0.258, LCL = 0.044
c. UCL = 0.289, LCL = 0.064
No. of Defectives
12
18
10
14
16
19
17
12
11
14
p
0.060
0.090
0.050
0.070
0.080
0.095
0.085
0.060
0.055
0.070
Sample
11
12
13
14
15
16
17
18
19
20
No. of Defectives
16
14
12
16
18
20
18
20
21
22
p
0.080
0.070
0.060
0.080
0.090
0.100
0.090
0.100
0.105
0.110
Management wants to develop a p-chart using 3 sigma limits. Estimate the proportion defective for the
total sample.
a. 0.06
c. 0.16
b. 0.12
d. 0.08
Answer: d. 0.08
Total Defectives
p = -----------------------------------------------------Total Sample Observations
320
p = ------------------------ = 0.08
20(200)
29. In reference to problem no. 28, compute the upper & lower control limits.
a. UCL = 0.161, LCL = 0.014
c. UCL = 0.213, LCL = 0.014
43 | P a g e
2013
30. The Valle Hotel has 240 rooms. The hotels housekeeping is responsible for maintaining the quality of
the rooms appearance and cleanliness. Each individual housekeeper is responsible for an area
encompassing 20 rooms. Every room in use is thoroughly cleaned and its supplies, toiletries, and so
on are restocked each day. Any defects that the housekeeping staff notices that are not part of the
normal housekeeping service are supposed to be reported to hotel maintenance. Every room is
briefly inspected each day by a housekeeping supervisor. However, hotel management also conducts
inspection tours at random for a detailed, thorough inspection for quality control purposes. The
management inspectors not only check for normal housekeeping service defects like clean sheets,
dust, room supplies, room literature, or towels, but also for defects like an inoperative or missing TV
remote, poor TV picture quality or reception, defective lamps, a malfunctioning clock, tears or stains
in the bedcovers or curtains, or a malfunctioning curtain pull. An inspection sample includes twelve
rooms i.e. one room selected at random from each of the twelve 20-room blocks serviced by a
housekeeper. Following are the results from fifteen inspection samples conducted at random during a
one-month period:
Sample
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Number of Defects
12
8
16
14
10
11
9
14
13
15
12
10
14
17
15
The hotel believes that approximately 99 percent of the defects (corresponding to 3-sigma limits) are
caused by natural, random variations in the housekeeping and room maintenance service, with 1 percent
caused by nonrandom variability. They want to construct a c-chart to monitor the housekeeping service.
Compute for the sample defect estimate.
a. 10.87
c. 12.67
b. 11.92
d. 13.12
Answer: c. 12.67
Total Defectives
c = -----------------------------------------------------Total Sample Observations
190
c = ------------------------ = 12.67
15
31. In reference to problem no. 30, compute the upper & lower control limits.
a. UCL = 24.34, LCL = 2.33
c. UCL = 25.65, LCL = 1.78
Answer: b. UCL = 23.35, LCL = 1.99
44 | P a g e
2013
Complaint
Calls
27
15
38
41
19
23
21
16
33
35
26
42
40
35
25
Day
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
Complaint
Calls
19
12
17
18
26
31
14
18
26
27
35
20
12
16
15
b. 22.75
d. 26.12
Answer: c. 24.73
Total Defectives
c = -----------------------------------------------------Total Sample Observations
742
c = ------------------------ = 24.73
30
33. In reference to problem no. 32, compute the upper & lower control limits.
a. UCL = 39.65, LCL = 11.33
c. UCL = 39.65, LCL = 9.81
Answer: c. UCL = 39.65, LCL = 9.81
UCL = 24.73 + 3 sqrt(24.73) = 39.65
LCL = 24.73 - 3 sqrt(24.73) = 9.81
45 | P a g e
2013
34. The Salvedia Tool Company produces slip-ring bearings which look like flat doughtnuts or washers.
They fit around shafts or rods, such as drive shafts in machinery or motors. In the production process
for a particular slip-ring bearing the employees have taken 10 samples (during a 10-day period) of 5
slip-ring bearings i.e. n = 5. The individual observations from each sample are shown as follows.
Sample k
1
2
3
4
5
6
7
8
9
10
1
5.02
5.01
4.99
5.03
4.95
4.97
5.05
5.09
5.14
5.01
2
5.01
5.03
5.00
4.91
4.92
5.06
5.01
5.10
5.10
4.98
3
4.94
5.07
4.93
5.01
5.03
5.06
5.10
5.00
4.99
5.08
4
4.99
4.95
4.92
4.98
5.05
4.96
4.96
4.99
5.08
5.07
5
4.96
4.96
4.99
4.89
5.01
5.03
4.99
5.08
5.08
4.99
The company wants to develop an R-chart to monitor the process variability. Compute for the average
range for the sample.
a. 0.149
c. 0.124
b. 0.137
d. 0.115
Answer: d. 0.115
Sample k
1
2
3
4
5
6
7
8
9
10
R
0.08
0.12
0.08
0.14
0.13
0.10
0.14
0.11
0.15
0.10
1.15
1.15
R = ----------------- = 0.115
10
35. In reference to problem no. 34, compute the upper & lower control limits.
a. UCL = 0.243, LCL = 0
c. UCL = 0.412, LCL = 0
Answer: a. UCL = 0.243, LCL = 0
D3 = 0 and D4 = 2.11 for n = 5
UCL = 2.11(0.115) = 0.243
LCL = 0(0.115) = 0
46 | P a g e
2013
36. In reference to problem no. 34, compute the overall process average.
a. 4.02
c. 6.03
b. 5.01
d. 7.02
Answer: b. 5.01
Sample k
1
2
3
4
5
6
7
8
9
10
x
4.98
5.00
4.97
4.96
4.99
5.01
5.02
5.05
5.08
5.03
50.09
50.09
x = -------------------- = 5.01
10
37. In reference to problem no. 34, compute the upper & lower control limits for mean chart.
a. UCL = 5.08, LCL = 4.94
c. UCL = 7.13, LCL = 2.89
Sample k
1
2
3
4
5
6
7
8
9
10
11
12
47 | P a g e
4
8.85
9.21
9.03
9.01
9.05
9.06
9.23
9.15
9.05
9.46
8.88
9.06
5
8.46
8.95
8.42
9.53
9.35
8.89
8.78
9.06
9.13
8.47
8.92
8.95
b. 0.574
d. 0.715
Answer: b. 0.574
Sample k
1
2
3
4
5
6
7
8
9
10
11
12
R
0.67
0.69
0.93
0.52
0.64
0.71
0.45
0.17
0.32
0.99
0.65
0.15
6.89
6.89
R = ----------------- = 0.574
12
39. In reference to problem no. 38, compute the upper & lower control limits.
a. UCL = 1.243, LCL = 0
c. UCL = 1.212, LCL = 0
48 | P a g e
b. 9.012
d. 9.024
2013
Sample k
1
2
3
4
5
6
7
8
9
10
11
12
2013
x
8.894
8.876
8.990
9.194
9.038
8.708
9.054
9.158
8.974
9.064
9.092
9.012
107.964
107.964
x = -------------------- = 8.997
12
41. In reference to problem no. 38, compute the upper & lower control limits for mean chart.
a. UCL = 9.08, LCL = 8.66
c. UCL = 9.33, LCL = 8.89
b. $0.03
d. $0.05
Answer: b. $0.03
Solution:
Should Part A be inspected?
0.03 defective with no inspection.
0.02 defective with inspection.
This problem can be solved simply by looking at the opportunity for 1 percent improvement.
Benefit = 0.01($4.00) = $0.04
Cost of inspection = $0.01
Therefore, inspect and save $0.03 per unit.
49 | P a g e
2013
43. In reference to problem no. 42 and suppose the cost of inspecting is $0.05 per unit rather than $0.01.
Would you perform the inspection?
a. Yes
c. Maybe
b. No
d. No Answer
Answer: No
A cost of 0.05 per unit to inspect would be 0.01 greater than savings so inspection should not be
performed.
44. A company currently using an inspection in its material receiving department is trying to install an
overall cost reduction program. One possible reduction is the elimination of one of the inspection
positions. This position tests material that has a defective content on the average of 0.04. By
inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per
hour. Hourly rate including fringe benefits for this position is $9. If the inspection position is eliminate,
defects will go into product assembly and will have to be replaced later at a cost of $10 each when
they are detected in final product testing. Should this inspection position be not eliminated and how
much is the benefit (or loss) from the current inspection process?
a. Yes, Benefits of $5
c. No, Losses of $5
b. Yes, Savings of $1
d. No, Loss of $1
b. 0.74
d. 0.70
Answer: c. 0.72
Solution:
0.90
50 | P a g e
0.80
2013
Rule 1: If two or more events are independent and success is defined as the probability that all of the
events occur, then the probability of success is equal to the product of the probabilities of the events.
P (both success) = 0.90 x 0.80 = 0.72
47. There are two lamps in a room. When turned on, one has a probability of working of 0.90 and the
other has a probability of working of 0.80. Only a single lamp is needed to light for success. If one
fails to light when turned on, the other lamp is turned on. Hence, one of the lamps is a backup in case
the other one fails. What is the reliability of the system or the probability of success that either lamp
will turn on?
a. 0.92
c. 0.96
b. 0.94
d. 0.98
Answer: d. 0.98
Solution:
0.80
0.90
Rule 2: If two events are independent and success is defined as the probability that at least one of the
events will occur, the probability of success is equal to the probability of either one plus 1.00 minus that
probability multiplied by the other probability.
P (Either lamp is a success) = 0.90 + (1 0.90) (0.80) = 0.98
48. Three lamps have probabilities of 0.90, 0.80, and 0.70 of lighting when turned on. Only one lighted
lamp is needed for success; hence, two of the lamps are considered to be backups. What is the
reliability of the system?
a. 0.992
c. 0.996
b. 0.994
d. 0.998
Answer: b. 0.994
Solution:
0.70
0.80
0.90
Rule 3: If two or more events are involved and success is defined as the probability that at least one of
them occurs, the probability of success is 1 P (all fail).
P (Either lamp is a success) = 1 [(1 - 0.90) x (1 0.80) x (1 - 0.70)] = 0.994
51 | P a g e
2013
0.98
a. 0.962
c. 0.966
0.90
0.92
0.90
0.95
b. 0.964
d. 0.968
Answer: c. 0.966
The system can be reduced to a series of three components:
0.98
b. $294
d. $298
Answer: a. $292
Because no probability is given for the switch, we will assume its probability of operating when needed is
100 percent. The expected cost of failure (i.e. without the backup) is $20,000 x (1 0.98) = $400.
With the backup, the probability of not failing would be:
0.98 + 0.02(0.98) = 0.9996
Hence, the probability of failure would be 1 0.9996 = 0.0004. The expected cost of failure with the
backup would be the added cost of the backup component plus the failure cost:
$100 + $20,000(0.0004) = $108
Therefore the cost savings is $400 - $108 = $292
51. Due to the extreme cost of interrupting production, a firm has two standby machines available in case
a particular machine breaks down. The machine in use has a reliability of 0.94, and the backups have
reliabilities of 0.90 and 0.80. In the event of a failure, either back up can be pressed into service. If
one fails, the other back up can be used. Compute the system reliability.
a. 0.9992
c. 0.9996
52 | P a g e
b. 0.9994
d. 0.9988
2013
Answer: d. 0.9988
Solution:
0.80
0.90
0.94
b. 0.999985
d. 0.999989
Answer: b. 0.999985
A warning would not be given if all three alarms failed. The probability that at least one alarm would
operate or P(Warning) is 1 P(None operate):
P(None operate) = (1 0.95)(1 0.97)(1 0.99) = 0.000015
P(Warning) = 1 0.000015 = 0.999985
53. By means of extensive testing, a manufacturing has determined that its washing machine models
have an expected life that is exponential with a mean of four years. Find the probability that one of these
machines will have a life that ends after the initial four years of service.
a. 0.23
c. 0.47
b. 0.37
d. 0.63
Answer: b. 0.37
Solution:
T = 4 years
MTBF = 4 years
T/MTBF = 4/4 = 1.0
-1.0
e^
= 0.3679
54. In reference to problem 53, find the probability that one these machines will have a life that ends
before four years of service are completed.
a. 0.77
c. 0.53
Answer: b. 0.63
53 | P a g e
b. 0.63
d. 0.37
2013
Solution:
-1
b. 0.33
d. 0.78
Answer: a. 0.22
T = 6 years
T/MTBF = 6/4 = 1.50
-1.5
e^
= 0.2231
56. The mean life of a certain fan belt can be modeled using a normal distribution with a mean of six
years and a standard deviation of one year. Determine the probability that a fan belt will wear out before
seven years of service.
a. 0.58
c. 0.75
b. 0.61
d. 0.84
Answer: d. 0.84
Solution:
Wear-out life mean = 6 years
Wear-out life standard deviation = 1 year
Wear-out life is normally distributed.
Compute for
76
z = -----------------1
z = +1.0
Thus, P(T < 7) = 0.8413
57. In reference to problem 56, determine the probability that a fan belt will wear-out after seven years of
service.
a. 0.42
c. 0.25
b. 0.39
d. 0.16
Answer: d. 0.16
Subtract the probability determined in previous problem from 100 percent
1.00 0.8413 = 0.1587 = 0.16
54 | P a g e
2013
57. In reference to problem 56, determine the service life that will provide a wear-out probability of 10
percent.
a. 6.31
c. 4.72
b. 5.19
d. 3.64
Answer: c. 4.72
Use the normal table and find the value of z that corresponds to an area under the curve of 10 percent.
z (10%) = -1.28
T6
1.28 = -----------1
T = 4.72 years
58. A copier is able to operate for an average of 200 hours between repairs, and the mean repair time is
two hours. Determine the availability of the copier.
a. 0.61
c. 0.87
b. 0.76
d. 0.99
Answer: d. 0.99
MTBF = 200 hours
MTR = 2 hours
Availability = 200/(200 + 2) = 0.99
59. A weather satellite has an expected life of 10 years from the time it is placed into earth orbit,
Determine its probability of no wear-out before 20 years length of service. Assume the exponential
distribution is appropriate.
a. 0.08
c. 0.21
b. 0.14
d. 0.36
Answer: b. 0.14
T = 20 years
T/MTBF = 20/10 = 2.00
-2.0
e^
= 0.1353
60. In reference to problem 59, what is the probability that the satellite will fail between 5 and 12 years
after being placed into earth orbit?
a. 0.30
c. 0.38
b. 0.35
d. 0.42
Answer: a. 0.30
P(5 years < failure < 12 years) = P(failure after 5 years) P(failure after 12 years)
55 | P a g e
2013
e^
= 0.6065
e^
= 0.3012
P(5 years < failure < 12 years) = 0.6065 0.3012 = 0.3053 = 0.30
61. One line of radial tires produced by a large company has a wear-out life that can be modeled using a
normal distribution with a mean of 25,000 kilometers and a standard deviation of 2,000 kilometers.
Determine the percentage of tires that can be expected to wear-out within +-2,000 kilometers of the
average (i.e. between 23,000 kilometers and 27,000 kilometers).
a. 0.51
c. 0.74
b. 0.68
d. 0.82
Answer: b. 0.68
Kilometers are analogous to time and are handled in exactly the same way and the term percentage
refers to a probability.
The phrase within +-2,000 kilometers of the average translates to within one standard deviation of the
mean since the standard deviation equals 2,000 kilometers. Therefore the range of z is z = -1.00 to z =
+1.00 and the area under the curve between those points is found as the difference between P(z < +1.00)
and P(z < -1.00).
P(z < +1.00) = 0.8413
P(z < -1.00) = 0.1587
P(-1.00 < z < +1.00) = 0.8413 0.1587 = 0.6826
62. In reference to problem 61, for what life would you expect 4 percent of the tires to have worn out?
a. 22,500
c. 21,500
b. 22,100
d. 21,200
Answer: c. 21,500
Use the normal table and find the value of z that corresponds to an area under the curve of 4 percent.
z (4%) = -1.75
T 25,000
1.75 = ----------------2,000
T = 21,500 kilometers
56 | P a g e
2013
63. A manager has the option of using any one of three machines for a job. The machines and their
standard deviations are listed below and their specifications are 10.00mm and 10.80mm. Determine the
capability of machine A.
Machine
A
B
C
a. 0.39
c. 0.78
b. 0.48
d. 0.96
Answer: c. 0.78
Machine
A
B
C
Machine Capability
6(0.13) = 0.78
6(0.08) = 0.48
6(0.16) = 0.96
64. In reference to problem 63, compute the process capability ratio of machine B.
a. 0.83
c. 1.03
b. 0.96
d. 1.67
Answer: d. 1.67
Machine
A
B
C
Machine Capability
0.78
0.48
0.96
Cp
0.80/0.78 = 1.03
0.80/0.48 = 1.67
0.80/0.96 = 0.83
65. In reference to problem 64, which machine or machines is/ are capable?
a. Machine A
c. Machine C
b. Machine B
d. Machines A & B
Answer: b. Machine B
Only machine B is capable because its Cp is not less than 1.33.
66. A process has a mean of 9.20 grams and a standard deviation of 0.30 gram. The lower specification
limit is 7.50 grams and the upper specification limit is 10.50 grams. Compute Cpk.
a. 1.89
c. 1.44
b. 1.98
d. 1.66
Answer: 1.44
Compute the ratio for the lower specification:
Process Mean Lower Specification
9.20 7.50
1.70
Cpk = -------------------------------------------------------- = ------------------- = --------------- = 1.89
3
3(0.30)
0.90
57 | P a g e
2013
Mean
7.5
4.6
6.0
Standard Deviation
0.10
0.12
0.14
a. Process 1
b. Process 3
Lower Spec
7.0
4.3
5.5
Upper Spec
8.0
4.9
6.7
b. Process 2
d. Processes 1 & 3
Answer: a. Process 1
Notice that the means of the first two processes are exactly in the center of their upper and lower specs.
Hence, the Cp is appropriate. However, the third process is not centered, so Cpk is appropriate.
Cp or Cpk => 1.33
8.0 7.0
Process 1 Cp = -------------- = 1.67 (capable)
6(0.10)
4.9 4.3
Process 2 Cp = -------------- = 0.83 (not capable)
6(0.12)
6.7 6.0
Process 3 Cpk = -------------- = 1.67
3(0.14)
6.0 5.5
Process 3 Cpk = -------------- = 1.19 lower (not capable)
3(0.14)
58 | P a g e
2013
REFERENCES
[1]
Russel, R.S. and Taylor, B.W., III Operations Management, Third Edition, Prentice Hall, Inc.,
2000
[2]
Stevenson, W.J., Production/ Operations Management, Fifth Edition. McGraw Hill Companies,
Inc., 1996
59 | P a g e