Productions and Operations Midterm Essay

1334 Words Mar 23rd, 2013 6 Pages
I

MGMT 3100
Production and Operations Management

MID-TERM EXAM – SPRING 2012

Name:

This is a TAKE-HOME Exam. The exam consists of six questions on 2 pages. You are required to answer ALL the questions. Answer each question thoroughly and show all your calculations. Give clear explanations for your answers where necessary. Completed exams are due on Thursday, March 4th by Midnight. You may use regular e-mail or the drop-box to submit your completed exam.

EACH STUDENT IS EXPECTED TO ABIDE BY THE SENTIMENTS CONTAINED IN THE FOLLOWING HONOR STATEMENT

TAKE-HOME EXAM HONOR STATEMENT:
I did not request or receive assistance in preparing the answers to this exam. (Clarifications that you seek from the instructor will not be
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3. Explain how a company may be able to lower production costs while improving the quality of its products or services. A company can reduce it’s cost be making the products that they produce more standard across the board. This can enable them to use their experience to at least come close to perfecting the quality of a product or service, while reducing costs through economies of scale and having less defect costs. Unnecessary costs of poor quality such as defects in services or products cause declining sales. These costs can be higher than increased product and employee development.

Question 5. (20 points)
One of the products produced by Orange Computers is a monitor with a 42 inch diagonal LCD screen. Management believes that customers are willing to accept monitors that have a tolerance of ± .05 of an inch. The manufacturing process produces screens with an average diagonal length of 42 inches and a standard deviation of .012 of an inch.

1. Is the process capable? Explain why.

The process is capable because Cp>1. 2. What percentage of production would you expect to be outside the tolerance limits? Z=(42.05-42)/.012=4.167 Z=(41.95-42/.012)= -4.167 There is a .00003% chance that production would be outside of the tolerance limits. 3. Suppose the process average increases to 42.01 inches and the process standard deviation remains

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