Page 1 of 48
OPMA 317 FINAL EXAM REVIEW | FREQUENTLY
TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
What is the Pareto analysis?
List the steps to conduct it.
How can the Pareto be a useful tool when used properly? - ✔✔✔
Correct Answer > - distinguishing the vital few (80/20 rule)
- gather data on the frequency of various events
Step 1) events are ranked in decreasing order of importance
(prioritizing the few that make a big impact)
Step 2) graph the data (histogram & line graph)
- histogram = shows the "count" of frequency
- line = shows the cumulative % of total that would be solved if
item was solved.
Useful:
Can be helpful for change management, when getting
departments to get on-board, showing them the graphs can
,Page 2 of 48
make them feel not attacked, and show them where things are
going wrong.
What is a scatter diagram? - ✔✔✔ Correct Answer > - plot data points
and visually interpret the results
What is root cause analysis? Also known as the cause and effect
diagram. - ✔✔✔ Correct Answer > - keep asking "why" to determine
the root cause of a problem
There are two forms of statistical quality control, what are they? -
✔✔✔ Correct Answer > 1) acceptance sampling - a form of appraisal,
acceptance or rejection of goods which already exist
2) statistical process control - a form of prevention, set
standards to indicate when adjustments should be made while
the good or service is being produced.
What is statistics? What are the two main components? - ✔✔✔
Correct Answer > statistics: study of numerical data to better
understand the characteristics of a population or process
2 main components: measures of central tendency & measures
of dispersion (mean & variation (aka range & stdev))
What is the difference between "n" and "m"?
,Page 3 of 48
What is the sample mean and the grand mean? - ✔✔✔ Correct Answer
> m = # of samples
N = sample size or # of observations
Sample mean = the mean of each individual sample
Grand mean = the mean of all the sample means
What is the central limit theorem? - ✔✔✔ Correct Answer > - if we
calculate sample means (x-bar), rather than just individual
observations, then for large n the distribution of x-bar will tend
to normality.
When you sample, the sample may mislead you, what are the two
types of sampling errors?
Finish this sentence for each:
Sample says __________, action taken is ___________, actual
population is _____________. - ✔✔✔ Correct Answer > - producer risk
(type I)
- sample says PROBLEM, action taken is STOP & INVESTIGATE,
actual population is OK
- consumer risk (type II)
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- sample says OK, action taking is NONE, actual problem is
PROBLEM!
What are the operation strategies for sampling strategies... If
your strategy is high quality and low cost? - ✔✔✔ Correct Answer >
high quality: want to avoid type II errors, therefore controls are
tight, which results in more type I errors
Low cost: want to avoid type I errors, therefore controls are
loose, which results in more type II errors
*by trying to avoid a problem, you will increase your likelihood of
encountering another problem. There i.e. No right or wrong, it
just depends on your competitive advantage.
Why do we use control charts? - ✔✔✔ Correct Answer > - to make
inferences about the state (in control vs out of control) of the
process on the basis of one or more statistics of samples drawn
from the ongoing process
- purpose is to be an alarm tactic, and to see what variation is ok
and what is not.
Briefly describe how control charts work, generally - ✔✔✔ Correct
Answer > - you plot the mean in the middle, with the LCL and UCL
OPMA 317 FINAL EXAM REVIEW | FREQUENTLY
TESTED QUESTIONS WITH CORRECT
ANSWERS | BRAND NEW!
What is the Pareto analysis?
List the steps to conduct it.
How can the Pareto be a useful tool when used properly? - ✔✔✔
Correct Answer > - distinguishing the vital few (80/20 rule)
- gather data on the frequency of various events
Step 1) events are ranked in decreasing order of importance
(prioritizing the few that make a big impact)
Step 2) graph the data (histogram & line graph)
- histogram = shows the "count" of frequency
- line = shows the cumulative % of total that would be solved if
item was solved.
Useful:
Can be helpful for change management, when getting
departments to get on-board, showing them the graphs can
,Page 2 of 48
make them feel not attacked, and show them where things are
going wrong.
What is a scatter diagram? - ✔✔✔ Correct Answer > - plot data points
and visually interpret the results
What is root cause analysis? Also known as the cause and effect
diagram. - ✔✔✔ Correct Answer > - keep asking "why" to determine
the root cause of a problem
There are two forms of statistical quality control, what are they? -
✔✔✔ Correct Answer > 1) acceptance sampling - a form of appraisal,
acceptance or rejection of goods which already exist
2) statistical process control - a form of prevention, set
standards to indicate when adjustments should be made while
the good or service is being produced.
What is statistics? What are the two main components? - ✔✔✔
Correct Answer > statistics: study of numerical data to better
understand the characteristics of a population or process
2 main components: measures of central tendency & measures
of dispersion (mean & variation (aka range & stdev))
What is the difference between "n" and "m"?
,Page 3 of 48
What is the sample mean and the grand mean? - ✔✔✔ Correct Answer
> m = # of samples
N = sample size or # of observations
Sample mean = the mean of each individual sample
Grand mean = the mean of all the sample means
What is the central limit theorem? - ✔✔✔ Correct Answer > - if we
calculate sample means (x-bar), rather than just individual
observations, then for large n the distribution of x-bar will tend
to normality.
When you sample, the sample may mislead you, what are the two
types of sampling errors?
Finish this sentence for each:
Sample says __________, action taken is ___________, actual
population is _____________. - ✔✔✔ Correct Answer > - producer risk
(type I)
- sample says PROBLEM, action taken is STOP & INVESTIGATE,
actual population is OK
- consumer risk (type II)
, Page 4 of 48
- sample says OK, action taking is NONE, actual problem is
PROBLEM!
What are the operation strategies for sampling strategies... If
your strategy is high quality and low cost? - ✔✔✔ Correct Answer >
high quality: want to avoid type II errors, therefore controls are
tight, which results in more type I errors
Low cost: want to avoid type I errors, therefore controls are
loose, which results in more type II errors
*by trying to avoid a problem, you will increase your likelihood of
encountering another problem. There i.e. No right or wrong, it
just depends on your competitive advantage.
Why do we use control charts? - ✔✔✔ Correct Answer > - to make
inferences about the state (in control vs out of control) of the
process on the basis of one or more statistics of samples drawn
from the ongoing process
- purpose is to be an alarm tactic, and to see what variation is ok
and what is not.
Briefly describe how control charts work, generally - ✔✔✔ Correct
Answer > - you plot the mean in the middle, with the LCL and UCL
