MGMT 339 Midterm 2 (Latest )
Organizational Behavior, Leadership and
Business Management Questions &
Answers 100% Correct {Grade A} – CSUF
What are the three points inspection can occur at? - correct answer before production,
during production, and after production
Inspection costs - correct answer Optimal where cost of passing defective = Total cost
of inspection
Low cost, high volume items - correct answer Often require little inspection.
Cost associated with passing defective items is quite low.
Processes that produce these items are usually highly reliable - defects are rare.
High cost, low volume items - correct answer Require more intensive inspections.
Large costs associated with passing defective products.
,Statistical process control (SPC) - correct answer Used to evaluate process output to
decide if a process is "in control" or if corrective action is needed.
Random variation (common variation) - correct answer Natural variation in the output
of a process, created by countless minor factors.
Ex: older machines exhibiting natural variability.
Assignable variation (special variation) - correct answer variation whose cause can be
identified (assigned to specific causes).
Non-random variation.
Ex: defective materials, human factors, equipment that needs adjustment, etc.
Statistical sampling - correct answer used to identify variation and to identify the
randomness of the process variation.
Control charts - correct answer time-ordered plot of sample statistics.
Used to distinguish between random variability and nonrandom variability.
, Control limits - correct answer define the range of acceptable (random) variation for
the sample statistic
Upper and lower
Purpose of control charts - correct answer monitor process output to see if it is
random.
Process in control (stable) - correct answer All data points fall between LCL and UCL
Process not in control (nonrandom) - correct answer There is a data point that falls
outside the limits
Type I error - correct answer Concluding a process is not in control when it actually is.
Producer risk
When range is smaller
Type II error - correct answer Concluding a process is in control when it is not.
Bigger problem
Organizational Behavior, Leadership and
Business Management Questions &
Answers 100% Correct {Grade A} – CSUF
What are the three points inspection can occur at? - correct answer before production,
during production, and after production
Inspection costs - correct answer Optimal where cost of passing defective = Total cost
of inspection
Low cost, high volume items - correct answer Often require little inspection.
Cost associated with passing defective items is quite low.
Processes that produce these items are usually highly reliable - defects are rare.
High cost, low volume items - correct answer Require more intensive inspections.
Large costs associated with passing defective products.
,Statistical process control (SPC) - correct answer Used to evaluate process output to
decide if a process is "in control" or if corrective action is needed.
Random variation (common variation) - correct answer Natural variation in the output
of a process, created by countless minor factors.
Ex: older machines exhibiting natural variability.
Assignable variation (special variation) - correct answer variation whose cause can be
identified (assigned to specific causes).
Non-random variation.
Ex: defective materials, human factors, equipment that needs adjustment, etc.
Statistical sampling - correct answer used to identify variation and to identify the
randomness of the process variation.
Control charts - correct answer time-ordered plot of sample statistics.
Used to distinguish between random variability and nonrandom variability.
, Control limits - correct answer define the range of acceptable (random) variation for
the sample statistic
Upper and lower
Purpose of control charts - correct answer monitor process output to see if it is
random.
Process in control (stable) - correct answer All data points fall between LCL and UCL
Process not in control (nonrandom) - correct answer There is a data point that falls
outside the limits
Type I error - correct answer Concluding a process is not in control when it actually is.
Producer risk
When range is smaller
Type II error - correct answer Concluding a process is in control when it is not.
Bigger problem
