Exam 7: Process Strategies

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A non-profit organization is planning a raffle to raise money. It has two options for tickets. The first option is to do the tickets by hand, with fixed costs of $50 and variable costs of $.05 per ticket. The second option is to outsource production. This would result in fixed costs of $500 and variable costs of $.01. If the organization plans to sell 10,000 tickets which option should it choose?

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Acceptance sampling:

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A consultant has been brought in to a manufacturing plant to help apply Six Sigma principles. Her first task is to work on the production of rubber balls. The upper and lower spec limits are 21 and 19 cm, respectively. The consultant takes ten samples of size five and computes the sample standard deviation to be .7 cm and the sample mean to be 19.89 cm. Compute Cp and Cpk for the process. Give the consultant advice on what to do with the process based on your findings.

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In most banks, customers need to go to different service areas for opening accounts, applying for loans, and making deposits. This service strategy is an example of:

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Align Technology uses a ________ approach to produce clear plastic removable aligners.

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________ is variation in a production process that can be traced to specific causes.

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One of the similarities between product focus and mass-customization is:

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A value-stream map includes both (1) inventory quantities, and (2) time on the horizontal axis.

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If a process has only natural variations and follows a normal distribution, ________ percent of the time the sample averages will fall inside the ±3-sigma control limits.

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Service blueprinting:

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"Operators simply load new programs, as necessary, to produce different products" describes:

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Goods made to order are typical of ________ and ________ approaches while goods made to forecast are typical of ________ and ________ approaches.

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Acceptance sampling accepts or rejects an entire lot based on the information contained in the sample.

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Which of the following statements about acceptance sampling is TRUE?

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A special form of time-function mapping, which goes beyond the organization into its supply chain, is ________.

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The crossover point is that production quantity where:

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Frito-Lay is to ________ focus as Dell Computer is to ________ focus.

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Production technology has had a major impact on services, but as yet there has been little reduction in service labor requirements.

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A woodworker is concerned about the quality of the finished appearance of her work. In sampling units of a split-willow hand-woven basket, she has found the following number of finish defects in ten units sampled: 4, 0, 3, 1, 2, 0, 7, 2, 0, 2. (a) Calculate the average number of defects per basket. (b) If 3-sigma control limits are used, calculate the lower control limit and upper control limit.

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Process redesign:

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