– FIRST EXAM SPRING 2020
1. Describe how the view of operations as a process can be applied to the following:
a. Acquisition of another company
b. Marketing Research for a New Product
c. Design of an Information System
2. An operations manager was heard complaining
“My boss never listens to me —– all the boss wants from me is to avoid making waves. I rarely get any capital to improve operations. Also, we do not have weekly, biweekly or even monthly meetings with our product managers, supply chain department, customer service or the sales department. We only meet with the accounting and finance departments when there are issues with the monthly budgets. Furthermore, our department has interacted with information service department about four times in past fiscal year”
Please assess the following:
a. Whether this business has a business strategy ?
b. Does it have an operations strategy?
c. What would you recommend?
3. Firm A has recorded the following costs in 2018:
Incoming materials and inspection $20,000
Training of Personnel $40,000
Warranty $45,000
Process Planning $15,000
Scrap $13,000
Quality Laboratory $30,000
Rework $25,000
Allowances $10,000
Complaints $14,000
a. What are the Prevention, Appraisal, Internal Failure and External Failure costs?
b. What inferences can you draw on Quality Measures taken by Firm A?
c. What would you recommend to improve quality programs in Firm A?
d. What initiatives should Firm A implement for 2019 and 2020?
4. Please explain the House of Quality (QFD) as discussed in class.
5. A certain process is under statistical control and has a mean value of 130 and a standard deviation of 8. The specifications for the process are:
a. USL (upper specification limit) = 150
b. LSL(lower specification limit) =100
a. Calculate the cp and cpk
b. Which of these indices is a better measure of process capability and why?
c. Assuminng a normal distribution what percentage of output is expected to fall ourside the specification. Why is it important to know this?
d. What would you recommend?
2
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