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And In-Depth Analysis To Score Full Credit.: Spring 2020 ISOM3730 Final Exam Solution
And In-Depth Analysis To Score Full Credit.: Spring 2020 ISOM3730 Final Exam Solution
And In-Depth Analysis To Score Full Credit.: Spring 2020 ISOM3730 Final Exam Solution
Note: The following only shows the essence of the solution. Typically, you will need more elaboration
and in-depth analysis to score full credit.
(4 pts) Question 1
A company is attempting to change from a Cp of 1 to a Cp of 2. Which of the following is a possible
method?
(4 pts) Question 2
A company is deciding between using an (n, c) sampling plan with n = 10 and c = 1 or a sampling plan
with n = 10 and c = 2. If the sample is rejected, the lot (10,000 goods) undergoes 100% inspection.
Otherwise, the lot is shipped out without inspection. Which of the following is true?
A. The (10,1) plan will have greater costs of inspection and greater external failure costs.
B. The (10,1) plan will have greater costs of inspection and lower external failure costs.
C. The (10,1) plan will have lower costs of inspection and lower external failure costs.
D. The (10,1) plan will have lower costs of inspection and greater external failure costs.
E. Not enough information to tell.
(4 pts) Question 3
Quality function depolyment
(4 pts) Question 4
Regarding the service quality framework, which of the following will the use of process capability
analysis benefit the most?
A. Reliability
B. Assurance
C. Empathy
D. Tangibles
E. Responsiveness
(6 pts) Question 5
Due to the outbreak of coronavirus, HKUST has tightened the hygiene standards of all on-campus
catering outlets. Measures including
(1) regular disinfection of the restaurant areas (including cashier, tables, chairs, door handles,
etc) every 2 hours,
(2) provision of hand sanitizers at entrance,
(3) provision of envelope (to contain used masks) upon request,
(4) operating at half capacity and placing tables 1.5 meters apart from each other,
(5) ensuring restaurant employees and customers are wearing masks when they are not eating
or drinking,
(6) checking restaurant employees’ temperature before work, are enforced.
Pick 2 measures and explain how they impact the 5 service quality dimensions.
b) Redesign the curriculum of the course to fit in the style of online teaching.
Gap 2
c) Spend time to talk to students before the semester to understand their needs due to changes in
the format of classes.
Gap 1
d) Spend more time at the end of zoom class meetings to convey to students what he has done in
class, such as the important points covered and make sure students do not have unanswered
questions.
Gap 4
2
(6 pts) Question 7
From the previous question, pick 2 tasks from (b) to (d), explain how they match with Deming’s
14 points of management.
(4 points) Question 8
KME’s grocery production process makes cartons that are normally distributed with a length of 20
inches and a process standard deviation of 1.5 inches. Their customers require that a carton be between
18 and 22 inches long.
(6 points) Question 9
Suppose another vendor of CT scanners offer a deal at the same price of 2 million dollars per scanner.
To perform CT scan and CT image reconstruction this scanner requires 14.5 minutes per scan, but at a
cheaper expense of $40 medical supplies cost per scan. Should the hospital purchase this scanner
instead of the original new scanner in situation 2? Justify your answer with mathematical analysis.
Unit load = 16.5 for Technologist and CT, capacity per hour = 3.636.
a) (6 pts) What is the expected total cost associated with this n-c plan?
3
b) (4 pts) What is the AOQ of this plan?
(8 pts) Question 11
Consider the following process flow chart:
The company sells each item for $200 but must refund the money plus $50 to any customer that receives
a faulty part. They only have access to one inspector who charges $3/part. Demand is infinite. The
inspection is perfect and there are no repairs (faulty items are discarded).
Is it better to place the inspector after step A or after step C? It is not feasible to place him after step
B. Mathematical solutions only.
After A: Sell 95% of parts produced. 90.25% of parts are good. [.857375 of original]
Pay: 1000*(10+3) + 950 * 80 = 89000.
Revenue: 950 * 200 = 190,000
Defect cost: (950 – 857) * 250 = 23,250
Profit = 190k – 89k – 23.25k = 77.75
4
(18 pts) Question 12
A system consists of independent component A and component B arranged in series. The system
reliability requirement is 0.95 for an operating time period of 100 hours. Both component A and
component B follow exponential time-to-failure distribution, with failure rate 0.0004 and 0.0003 per
hour, respectively.
b) (6 pts) If component A can be improved, what is the minimum average time-to-failure such as
the system reliability requirement can be met?
c) (6 pts) If multiple units of component A can be installed in parallel, what is the minimum
number of units required to meet the system reliability requirement without changing any
failure rate for components A and B.
n=2
d) (2 pts) If the approach in part (b) costs $1000, whereas each unit of the new component A in
part (c) costs $400. Which approach, (b) or (c), would you recommend to satisfy the system
reliability requirement?