The process for depositing a check at Better Banking, Inc. begins with the teller determining if the customer wants to receive any cash back. If not, the teller checks to see if the payee’s name is on the account, stamps the deposit slip, and gives the customer a receipt. If there is cash back, the teller adds the checks and subtracts the net deposit to verify the cash amount on the deposit slip, checks and verifies the customer’s account, makes a “cash out” ticket for bank accounting, and gives the customer back the cash and receipt. Draw a flowchart for Better Banking’s process and identify potential sources of error and poke-yokes that might be used to mitigate these errors.
> An electronic missile guidance system at Guide, Inc. consists of Components A, B, C, and D, which have reliabilities of 0.98, 0.97, 0.91, and 0.95, respectively (see the following diagram). a. What is the reliability of the entire system? b. Suppose th
> A manufacturer of electric cooktops purchases major electronic components as modules. The reliabilities of components differ by supplier (see the system diagram below). Suppose that the configuration of the major components is given by: The components c
> The MTBF of an integrated circuit made by Way forward, Inc. is 16,000 hours. Calculate the failure rate.
> An electronic component in a satellite radio made by Space scope, Inc. has a failure rate of λ = 0.0000165 units/hour. Find the mean time to failure (MTTF). What is the probability (assuming an exponential probability distribution) that the component wil
> Livelong, Inc.’s computer monitors have a failure rate of λ = 0.00095 units per hour. Assuming an exponential distribution, what is the reliability function? What is the probability of failure within 2,000 hours? Calculate your answer using the appropria
> Broadened, Inc. makes automobile tires that have a mean life of 50,000 miles with a standard deviation of 2,500 miles. Using Excel functions (see Chapter 6), determine the following: a. What fraction of tires is expected to survive beyond 54,000 miles?
> Newtonian, Inc. is working on a design for a new smartphone. Marketing staff conducted extensive surveys and focus groups with potential customers to determine the characteristics that the customers want and expect in a smartphone. Newtonian’s studies ha
> The life of a calorific phone battery is normally distributed with a mean of 1,100 days and standard deviation of 60 days. Using Excel functions (see Chapter 6), determine the following: a. What fraction of batteries is expected to survive beyond 1,200
> Massive Corporation’s tested five motors in a 900- hour test. Compute the failure rate if three failed after 200, 475, and 750 hours and the other two ran for the full 900 hours each.
> The Breton Card Company (BCC) is a manufacturer of playing cards and novelty cards for consumers and entertainment businesses. Playing cards are produced to individual specifications, which include the customer rolls of paper together, printing the ink p
> The average time to handle a call in the Call-No wait call processing center has a specification of 5.9 6 1.15 minutes. The loss due to a mishandled call is $15. A sample of 25 calls was drawn from the process and the results, in minutes, can be found in
> Two processes, P and Q, are used by a supplier to produce the same component, Z, which is a critical part in the engine of the Bearing Port 778 airplane. The specification for Z calls for a dimension of 0.24 mm 6 0.03. The probabilities of achieving the
> At Elproparts Manufacturers’ integrated circuit business, managers gathered data from a customer focus group and found that any output voltage that exceeds 60 6 3.5 volts was unacceptable to the customer. Exceeding these limits results in an estimated lo
> A computer chip designed by the MicroKeeb Co. has a specification for the distance between two adjacent pins of 2.000 6 0.002 mm. The loss due to a defective chip is $4. A sample of 25 chips was drawn from the production process and the results, in milli
> A computer chip designed by the MicroKeeb Co. has a specification for the distance between two adjacent pins of 2.000 6 0.002 mm. The loss due to a defective chip is $4. A sample of 25 chips was drawn from the production process and the results, in milli
> An automatic cookie machine at ACM, Inc. must deposit a specified amount of 25 6 0.3 grams (g) of dough for each cookie on a conveyor belt. It costs $0.03 to scrap a defective cookie. A sample of 50 cookies was drawn from the production process, which ha
> An electronic component at Amp comp has a specification of 100 6 0.4 ohms. Scrapping the component results in a $81 loss. a. What is the value of k in the Taguchi loss function? b. If the process at Amp comp averages 99.8 ohms with a standard deviation
> Guido Unlimited makes electronic soundboards for car stereos. Output voltage to a certain component on the board must be 12 6 0.5 volts. Exceeding the limits results in an estimated loss of $60. Determine the Taguchi loss function.
> A hospital developed a design process consisting of the following steps: Plan, Design, Measure, Assess, and Improve. Below is a list of specific activities that comprise these five steps in random order. Place the activities in the most appropriate order
> The dimension of a machined part made by Perfection Machining, Inc. has a nominal specification of 7.6 cm. The process that produces the part can be controlled to have a mean value equal to this specification, but has a standard deviation of 0.3 cm. What
> Nearly everyone has eaten at McDonald’s; the company sells millions of French fries each day. However, variation in the fries hasn’t gone unnoticed. One Japanese news source challenged McDonald’s Japanese weight standard with an experiment. Weighing 6500
> The mean time to pour and process 5 cubic yards of concrete by the Ohio Valley Construction is 15.5 minutes. If 2 percent of the projects with 5 yards of concrete require more than 15.75 minutes, what is the standard deviation of the time for such projec
> Sparkly Cleaning Co. has found that standard size offices have a standard deviation of 5 minutes for their cleaning time. The operations manager knows that 95 percent of the offices require more than 120 person-minutes to clean. However, she wishes to fi
> Frackly Oil is sold in 900 milliliter (mL) cans. The mean volume of oil placed in a can is 880 ml with a standard deviation of 7.8 mile Assuming a normal distribution of the data, what is the probability that the filling machine will cause an overflow in
> El Grande Green Tea is sold in 350 milliliter cans. The standard deviation for the filling process is 9 milliliters. What must the target mean for the process be to ensure that the probability of overfilling more than 350 mL in a can is at most 1 percent
> Rainbow Punch was made by Frutayuda, Inc. and sold in 12-ounce cans to benefit victims of Hurricane Zero. The mean number of ounces placed in a can by an automatic fill pump is 11.7 with a standard deviation of 0.18 ounce. Assuming a normal distribution,
> The Turk alike Rug Company buys medium grade carpet in 100-foot rolls. The average number of defects per roll is 2.0. Assuming that these data follow a Poisson distribution, use the Poisson spreadsheet template to answer the following questions. a. What
> Auditors at the Valles Verdes Partners, P.S.C. took a sample of 150 accounts payable bills, as shown in the table found in the Excel worksheet Prob. 6-2 in the Excel workbook C06 Problem Data. a. Find the proportion of the accounts payable in the sample
> A quality manager at Nevis Pharmaceutical Company is monitoring a process that fills vials with a liquid medication designed to prevent glaucoma in the eyes of the user. The company wants to ensure that each vial contains at least 60 mL (2.03 fluid oz.)
> Tessler Electric utility requires service operators to answer telephone calls from customers in an average time of 0.1 minute or less. A sample of 25 actual operator times was drawn, and the results are given in the following table. In addition, operator
> A new product is being tested by Zed Electronics to determine if it will continue to operate in a stable fashion under a variety of conditions. A sample of 400 items were tested, and 60 failed the test. Determine a 90 percent confidence interval for the
> Burrito Brothers is a small regional chain of quick service restaurants in the Midwest. They specialize in four types of burritos: chicken, beef, pork, and a bean-based vegetarian item. The burritos are made-to-order, so customers can add rice, cheese, g
> Chelsey, a young entrepreneur who has worked in various restaurants throughout high school and college, has decided to develop a new food service concept that focuses primarily on takeout of home-cooked meals for busy professionals on their way home from
> The distribution center manager at Internet distributor Plastik Parts, Inc. wants to find a confidence interval for the average time required for an associate to fill an order for shipment. A sample of 25 orders is taken and the mean time was found to be
> A warehouse manager at Dock housing, Inc. maintains a large inventory of video games. The company’s database states that the mean value of the games in inventory is $50, with a standard deviation of $5. The manager is concerned about pilfering the more e
> The data in the Excel worksheet Prob. 6-13 in C06 Problem Data workbook shows the weight of a set of castings (in kilograms) being made in the Fillmore Metal-work foundry. Construct an Excel spread sheet to compute the mean and standard deviation using f
> The times for carrying out a blood test at Rivercreek Labs for 100 tests, found in the Prob. 6-12, in the C06 Problem Data workbook, were studied in order to better understand the process. Apply the Descriptive Statistics tool to compute summary statisti
> Use the data for Twenty-first Century Laundry for the weights of loads of clothes processed through their washing department in a week. (See Prob. 6-11 in the C06 Problem Data workbook.) a. Apply the Excel Descriptive Statistics tool to compute the mean,
> Genjeteye, Inc. makes aircraft engines. The mean time to failure has been found to be 100,000 hours and is exponentially distributed. a. What is the failure rate, l, per hour? b. What is the cumulative probability of failure after 10,000 hours or fewer
> A new production process at Fabulist, Inc. has two in-line stages. The probability of defective components being produced in stage 1 is 15 percent and 10 percent in stage 2. Assembled units that have defective components only from stage 1 OR only from st
> The process engineer at Siva Electronics is also trying to determine whether a newer, more costly design involving a gold alloy in a computer chip is more effective than the present, less expensive silicon design. She wants to obtain an effective output
> A quality analyst at Paint fast Manufacturing Co. wants to determine if a new paint formulation, used to paint parts for a customer’s assembly operation, will dry fast enough to meet the customer’s needs. The customer would prefer to obtain a high level
> At White Clay Pottery a kiln is used to bake ceramic pottery. The production manager wishes to determine the relationship between temperature and brittleness, so he takes measurements of the brittleness of test items versus the temperature of the oven. (
> Managing an integrated supply chain (ISC) is highly dependent on quality management practices. IBM, which considers the effective and efficient operation of its supply chain as a key factor in improving its competitiveness, has approached implementation
> The process engineer at Siva Electronics was trying to determine whether three suppliers would be equally capable of supplying the mounting boards for the new “gold plated” components that she was testing. The table found in the worksheet Prob. 6-23 in t
> Softshell, a software developer, is trying to determine if any of three potential subcontractors has better programmers in order to outsource a development project. The three subcontractors agreed to test 5 programmers, using a standardized test provided
> Rabbit foot Community Bank makes a large number of home equity loans each year. The vice president of loan administration wishes to determine if their time for paperwork processing is lower than the average time of their top competitor. Data for a sample
> The quality manager at Olivet Pharmaceutical Company is certifying a new process that must produce 95 percent (or better) good product before certification can be completed. A sample of 30 containers from the process line are tested, and 92 percent are f
> Global food supply chains consist of many processes. Bananas, for example, are grown on farms in South or Central America. At the farm, the growth and quality are monitored continuously, and samples are tested periodically. Once the bananas in a cluster
> You have most likely taken your car for service at an automobile dealership. Typical activities in servicing a customer’s automobile include making an appointment, meeting with a service advisor to discuss the service or problem, waiting for the work to
> Maintaining accuracy of books on the shelves in a college library is an important task. Consider the following problems that are often observed: Books are not placed in the correct shelf position, which includes those books that have been checked out an
> The process for filling a prescription at a pharmacy begins when a customer’s physician calls the pharmacy or the customer drops off a written prescription. Sometimes the customer needs to refill a prescription and if no refills remain, the pharmacist wi
> The process of making a batch of paint at Peter’s Paint Products (PPP) paint factory consists of the following steps: First the correct amount of raw materials must be mixed in the proper sequence. The operator must follow specified safety instructions.
> Gold Star Chili is a chain of chili restaurants in the greater Cincinnati area. Figure 5.8 shows a process based organization of the company. Three major value creation processes link the operation of the company to its customers and other stakeholders:
> Consider the following list of generic business processes. Identify each as a value-creation process or a support process. Then discuss the logical sequence that the value creation processes should follow. a. Invoice customers b. Manage information c.
> Easy Quality Solutions (EQS) is trying to design a handheld device targeted toward quality managers. They have surveyed a panel of quality managers and have found that the characteristics that are important to such managers are: speed, active memory, por
> Audrey’s Beauty Boutique started out with a mission of providing hair care, beauty treatment, and spa services to middle-income women. Angelina would like to move to a more upscale clientele, if possible. She has collected weekly data for the past two ye
> Richard’s Rapid Reservations (RRR.com) takes and processes reservations on land, sea, air, and even space travel and prides itself in being a “one-stop” service for adventure travel. Data in spreadsheet C03 Problem Data on the Student Companion Site show
> Versailles Sporting Goods is a family-owned regional sporting goods store located in a small Midwestern town, and competes with a larger nation sporting goods chain in a larger city about 40 miles away, as well as a local national retail “superstore” wit
> SportTee makes T-shirts for national sporting goods and retail chain stores. Sport Tee’s quality manager analyzed a random sample of 100 dissatisfied customers and found that 24 percent of them complained to the company; 75 percent of those who complaine
> A local franchise of the Williams Car Rental Company conducted a survey of customers to determine their perceptions of the importance of key product and service attributes as well as their perceptions of the company’s performance.74 The
> A logistics company surveyed its shipping customers. Using a scale of 1–5, with 5 being the highest, they obtained the following average ratings.
> Choose a product or service to illustrate how several definitions of quality can apply simulate
> A reader wrote to Business Week (July 9 & 16, 2007, p. 16) and noted: “Americans have switched from Detroit Big Three vehicles to Honda and Toyota vehicles not for visual design features but for durability, reliability, good fuel consumption, and low ful
> Wow! That State University video was really cool. It has lots of majors; it’s close to home so I can keep my job; and Mom and Dad loved it when they visited. I wish I could know what it’s really like to be a student at State. Hmmm, I think I’ll ask Mom a
> We noted that high quality is not necessarily related to price. Discuss this, drawing from your own knowledge and experience, and provide examples where this may and may not be true
> Discuss the importance of quality to the national interest of any country in the world. Given China’s emergence as a global economic power, of what importance do you believe that quality will play in their future?
> Discuss how either good or poor quality affects you personally as a consumer. For instance, describe experiences in which your expectations were met, exceeded, or not met when you purchased goods or services. Did your experience change your regard for th
> Thinking of the Kano model, should organizations pay the most attention to dissatisfies, satisfiers, or exciters/delighters? Defend your choice with appropriate examples. Would this depend on the type of industry or environment in which an organization c
> The five dimensions of service quality are important to such retail stores as Walmart and Target. Assuming that these represent key customer requirements, what things might these companies do in designing their stores and operations to ensure that they m
> What expectations might a typical e-commerce customer have for a website? How might this differ from a brick-and-mortar store?
> How might a college or university segment its customers? What specific needs might each of these customer groups have?
> Recall the AT&T customer–supplier model in Figure 3.2. For each of the following departments in a typical company, discuss who are their internal or external customers and suppliers. a. Operations b. Information Systems c. Human
> Can you describe a customer-focused organization similar to the City of Fort Collins or K&N Management’s restaurants with which you have had personal experience? What aspects of the organization impressed you the most?
> What implications might Deming’s Profound Knowledge have for Wall Street traders whose buying and selling behavior reacts somewhat wildly to daily news and government economic reports?
> Harbor Community College (HCC) offers a 2-year food service degree program. Students learn how to set up and manage food service operations in hotels, hospitals, schools, businesses, and so on. One of the most important courses is Food Service Sanitation
> Melissa Clare works for a software company as a technical support representative. Her duties include answering the telephone, providing information to customers, and troubleshooting technical problems. Her supervisor told her to be courteous and not to r
> In a videotape made in 1993, Deming related a story of an executive who spent an entire day flying from city to city, changing planes several times, because her company’s travel department received a cheaper fare than if she had taken a direct flight. Ho
> Discuss how Deming’s 14 Points can apply to an academic environment. How can learning and classroom performance be improved by applying Deming’s philosophy?
> Suggest ways that management can recognize the existence of fear in an organization. What strategies might managers use to deal with and eliminate fear?
> A team of quality professionals has suggested a revised version of Deming’s 14 Points “for the twenty first century,” as given in Table 2.4. Contrast these with Deming’s version in T
> The following themes form the basis for Deming’s philosophy. Classify the 14 Points into these categories and discuss the commonalties within each category. a. Organizational purpose and mission b. Quantitative goals c. Revolution of management philoso
> Discuss the interrelationships among Deming’s 14 Points. How do they support each other? Why must they be viewed as a whole rather than separately?
> One of our former students who sews as a hobby observed that it’s often difficult to control thread tension (tightness versus slackness of the stitch) as the tension normally exhibits variation. She learned from experience that if she adjusts the tension
> List some examples of variation that you observe in your daily life. Would they be classified as common or special causes? How might they be reduced?
> Think of your experiences in a job that you have held. How might the principles and practices of quality management listed in Tables 2.2 and 2.3 be applied to improve this organization? Table 2.2: Table 2.3:
> Maggie is a night-shift staff pharmacist at a large hospital. Staff pharmacists work in the main pharmacy with limited patient and physician contact and spend much of their time on computers verifying orders and checking the medication counters. Collabor
> Review the Quality Profiles presented at the beginning of this chapter. List specific practices cited in these examples and how they support the quality management principles in Table 2.2. Table 2.2:
> Whose philosophy—Deming, Juan, or Crosby— resonates most with your thinking and experience? Explain why
> Think of a system with which you are familiar, such as your college, fraternity, or a student organization. What is the purpose of that system? What would it mean to optimize that system?
> Compare the Deming Chain Reaction (Figure 2.1) with which suggests the relationships between quality and profitability. Discuss the sim hilarities and differences. Which do you think is the better model, if you had to choose one to present to a senior
> How can you internalize and practice quality at a personal level in your daily activities?
> Choose an organization that you have read about or with which you have personal experience and describe their sources of competitive advantage. For each, state whether you believe that quality supports their strategy or does not support it
> In this chapter, we noted that much of the work performed in traditional manufacturing organizations now involve service. Provide some examples of this, drawing upon the functions
> What role has the Internet played in improving service quality? What barriers to service quality might it have?
> How are people and information technology used to improve service in your college or university?
> Cite some examples from your own experience in which you felt service quality was truly top-notch, and some in which it was not. What do you think might be some of the fundamental differences in the infrastructure and management practices of these organi
> Sandra Wilford was recently promoted to General Manager of the Golden Suites Hotel, San Diego. She had previously been an assistant manager at the corporation’s hotel in Denver. The Denver hotel was truly a team-based organization. Sandra had seen the be
> Select a service activity with which you are familiar. If you were the manager of this activity, what “conformance to specifications” criteria would you use to monitor it?
> Provide specific examples of how the differences between manufacturing and service organizations are evident in a school or a hospital.
