Solutions
If the uncertainty in demand for a product goes up, what is the
implication on inventory holding cost, in the situation
where Cu > Co?
It will go up.
If the uncertainty in demand for a product goes up, what is the
implication on the optimal stocking quantity, in the situation
where Co > Cu?
It will go down.
The statistical quality measures such as process capability and
process control focus mostly on which dimension of quality?
Conformance to established standards
Since quality is so important, we need to undertake steps to
insure we deliver high quality. Which of the following is NOT a
step we need to undertake?
Hide mistakes and failures as soon as they occur
In its strict sense, the six-sigma designation refers to:
The points (mu + 6 sigma) and (mu - 6 sigma) must fall within
the specification limits.
Can a sample be on target and yet suggest the process is out of
control?
Yes, such a scenario can be envisioned but is not common
, Can a sample be out-of-spec but suggest the process is in
control?
Yes, such a scenario can be envisioned but is not common
As science advances and processes are improved:
A "common cause" of variation may become a "special cause."
For example, line infections may have been a common cause of
patient death in the distant past, but once process steps were
identified to prevent line infections, then the occurance of a line
infection signifies that some step of the process has been
neglected (and this neglect is the special cause of the patient's
death).
The "defect rate" is mentioned to be 1%. This would be:
At least a 2-sigma process.
To make sure each task is done right, which of these must be
done first?
Map the process flow (identify the individual process steps and,
if critical, their order of implementation).
1) Process capability is something you check before you start
producing
2) Statistical Process Control is something you check before you
start producing
Statement 1 is TRUE, Statement 2 is FALSE
What determines the cost of quality of a specific item, as
measured by the quality loss function?
The distance the part's measurement is from the target