OPRE 3310 EXAM 2 STUDY GUIDE
path time - Answers :-sum of activity times on the network diagram
critical path - Answers :-path w/ the longest path time (determines project duration)
- compare time, not number of steps
slack job - Answers :slack time= Late Star - Early Start= Late Finish - Early Finish
-when slack time of non-critical activity passes, it will become critical activity
time-cost tradeoff - Answers :-activities can be accelerated (crashed) at a cost
crash time - Answers :minimum possible time to complete an activity
crash cost - Answers :cost associated with crash time
daily crash cost - Answers :(crash cost - normal cost)/ (normal time - crash time)
Planned Value (PV) - Answers :-budget cost of work schedule x % of planned work
done at any time
After ______ weeks (early start time) planned progress: - Answers :______ - early start
time of activity/ duration of activity= % planned completed
PV - Answers :(normal cost)(% planned to be completed at that time)
Earned Value (EV) - Answers :-budget of cost x % of actual work done
Schedule Variance (SV) - Answers :EV - PV
Negative is behind schedule; positive is ahead of schedule
Cost Variance (CV) - Answers :EV - AC
Negative is over budget; positive is under budget
(AC is Actual cost of work completed)
if activity continues at same rate, how many hours until 100% complete? - Answers
:hours completed / %completed = # hours for it to be 100% complete
design quality - Answers :-target niche of the product in the mkt place (strategic decision
for the firm)
-dimensions: performance, features, reliability/durability, serviceability, aesthetics
-good quality does not equal luxury
conformance quality - Answers :degree to which the product or service design
specifications are met
, costs of quality - Answers :Costs of ensuring good quality: prevention costs, appraisal
costs
Consequence of bad quality: internal failure costs, external failure costs
Total Quality Management (TQM) - Answers :managing org so that it excels on all
dimensions of products and services that are important (as perceived by customer)
-2 fundamental operational goals: careful design of product/service (design quality),
consistently producing the design (conformance quality)
6 sigma key element of TQM - Answers :-philosophy and set of methods to eliminate
defects in product/service processes
-seeks to reduce variability in the processes that lead to defects
-produces 2 defects every billion products (practically 0)
-for normal distribution:
o mean +- 3std dev contains 99.73% of data values
o mean +- 6 std dev contains 99.999999%
6 sigma methodology- DMAIC - Answers :1. Define: customers and process
o define customers' priorities
o identify critical-to-quality (CTQ) characteristics that the customers consider to have
the most impact on quality
o define the key processes that determines CTQ characteristics
- process flow diagram and project network diagram
2. Measure: process and its performance
o run chart ( has service time and customers)
o check sheet (tracks defects)
3. Analyze: cause of defects
o pareto analysis- frequency and types of complaints
o fishbown diagram- ask why 5 times
4. Improve: remove causes of defects
o improve process
o PDCA cycle- plan (change aimed at improvement), do, check(study results), act
(institutionalize change or abandon)
o Fail-Safe Design: Poka Yoke
-checklists
-special tooling that prevents workers from making errors
5. Control: maintain quality
o Control limits
- if control limit too tight, spend too much time looking for causes of errors
- internal to quality engineer
o Tolerance limits
- external to the consumer
- anything beyond considered a defect
- control limits fall within tolerance limits
path time - Answers :-sum of activity times on the network diagram
critical path - Answers :-path w/ the longest path time (determines project duration)
- compare time, not number of steps
slack job - Answers :slack time= Late Star - Early Start= Late Finish - Early Finish
-when slack time of non-critical activity passes, it will become critical activity
time-cost tradeoff - Answers :-activities can be accelerated (crashed) at a cost
crash time - Answers :minimum possible time to complete an activity
crash cost - Answers :cost associated with crash time
daily crash cost - Answers :(crash cost - normal cost)/ (normal time - crash time)
Planned Value (PV) - Answers :-budget cost of work schedule x % of planned work
done at any time
After ______ weeks (early start time) planned progress: - Answers :______ - early start
time of activity/ duration of activity= % planned completed
PV - Answers :(normal cost)(% planned to be completed at that time)
Earned Value (EV) - Answers :-budget of cost x % of actual work done
Schedule Variance (SV) - Answers :EV - PV
Negative is behind schedule; positive is ahead of schedule
Cost Variance (CV) - Answers :EV - AC
Negative is over budget; positive is under budget
(AC is Actual cost of work completed)
if activity continues at same rate, how many hours until 100% complete? - Answers
:hours completed / %completed = # hours for it to be 100% complete
design quality - Answers :-target niche of the product in the mkt place (strategic decision
for the firm)
-dimensions: performance, features, reliability/durability, serviceability, aesthetics
-good quality does not equal luxury
conformance quality - Answers :degree to which the product or service design
specifications are met
, costs of quality - Answers :Costs of ensuring good quality: prevention costs, appraisal
costs
Consequence of bad quality: internal failure costs, external failure costs
Total Quality Management (TQM) - Answers :managing org so that it excels on all
dimensions of products and services that are important (as perceived by customer)
-2 fundamental operational goals: careful design of product/service (design quality),
consistently producing the design (conformance quality)
6 sigma key element of TQM - Answers :-philosophy and set of methods to eliminate
defects in product/service processes
-seeks to reduce variability in the processes that lead to defects
-produces 2 defects every billion products (practically 0)
-for normal distribution:
o mean +- 3std dev contains 99.73% of data values
o mean +- 6 std dev contains 99.999999%
6 sigma methodology- DMAIC - Answers :1. Define: customers and process
o define customers' priorities
o identify critical-to-quality (CTQ) characteristics that the customers consider to have
the most impact on quality
o define the key processes that determines CTQ characteristics
- process flow diagram and project network diagram
2. Measure: process and its performance
o run chart ( has service time and customers)
o check sheet (tracks defects)
3. Analyze: cause of defects
o pareto analysis- frequency and types of complaints
o fishbown diagram- ask why 5 times
4. Improve: remove causes of defects
o improve process
o PDCA cycle- plan (change aimed at improvement), do, check(study results), act
(institutionalize change or abandon)
o Fail-Safe Design: Poka Yoke
-checklists
-special tooling that prevents workers from making errors
5. Control: maintain quality
o Control limits
- if control limit too tight, spend too much time looking for causes of errors
- internal to quality engineer
o Tolerance limits
- external to the consumer
- anything beyond considered a defect
- control limits fall within tolerance limits
