Operations Management Exam 2 Review

The process improvement technique that sorts the vital few from the trivial many is

Pareto Analysis

A fishbone chart is also known as a

Cause and Effect Diagram

When sample measurements fall inside the control limits, it means that

If there is no other patterns in the sample, the process is in control

Pareto charts are used to

Organize errors, problems, or defects

If x-bar = 23 ounces, sigma = 0.4 ounces and n = 16, what will be the +-3sigma control limits for the x-bar chart?

22.70 to 23.30

To set x-bar chart upper and lower control limits, one must know the process central line which is the

Average of the sample means

Which of the following is true regarding the process capability index Cpk?

The larger the Cpk, the more units meet specifications

A manager wishes to build a 3-sigma range chart for a process. The sample size is five, the mean of the sample is 16.01 and the average range is 5.3 from table s6.1, the appropriate value of D3 is 0, and D4 is 2.115. What is the UCL and LCL, respectively for this range court?

11.2 and 0

Assignable Variations

Is to be identified and investigated

A product-focused process is commonly used to produce

High volume, low variety products

Break-even is the number of units at which

Total revenue equals total cost

Fabricators, inc. wants to increase capacity by adding a new machine. The fixed costs machine A are $90,000 and its variable costs is $15 per unit. The revenue is $21 per unit. What is the break-even point for machine A?

15,000 units

A work system has five stations that have process times of 5+9+4+9+8. What is the bottleneck time?

9

For a 3-sigma x-bar chart where the process standard deviation is known, the upper control limit

Is 3sigmasqrtn above the means of a 3sigma control chart

The c-chart signals whether there has been a

Change in the number of defects per unit

Professional services typically require low levels of labor intensity

False

Effective Capacity is the 

Capacity a firm expects to achieve given the current operating constraints

Utilization will always be lower than design capacity

Effective capacity is less than design capacity

Which of the following statements regarding fixed costs is true?

While fixed costs are ordinarily constant with respect to volume, they can “step” upward if volume increases result in additional fixed costs

Which of the following costs would be incurred even if no units were produced?

Building rental costs