63. The desired target quality characteristic of a product of Hanson Component
Manufacturing is 0.5. The customer-service manager knows that customers are likely to complain
when the specification is off the desired quality characteristic by more than 0.025. On average it
costs the firm $2,000 to handle and resolve each complaint. The production manager of the
Hanson Manufacturing suggests that the company test the product more thoroughly before
shipping. The cost of additional testing and adjustments is estimated at $30 per unit.
For Hanson, what is the value of
k
, the cost coefficient in the Taguchi Quality Loss Function
(QLF)?
64. The desired target quality characteristic of a product of Hanson Component
Manufacturing is 0.5. The customer-service manager knows that customers are likely to complain
when the specification is off the desired quality characteristic by more than 0.025. On average it
costs the firm $2,000 to handle and resolve each complaint. The production manager of the
Hanson Manufacturing suggests that the company test the product more thoroughly before
shipping. The cost of additional testing and adjustments is estimated at $30 per unit.
Given the company’s cost coefficient,
k
, what should the tolerance be (approximately) before
conducting additional testing and adjusting at the factory?
65. The desired target quality characteristic of a product of Hanson Component
Manufacturing is 0.5. The customer-service manager knows that customers are likely to complain
when the specification is off the desired quality characteristic by more than 0.025. On average it
costs the firm $2,000 to handle and resolve each complaint. The production manager of the
Hanson Manufacturing suggests that the company test the product more thoroughly before
shipping. The cost of additional testing and adjustments is estimated at $30 per unit.
Assume that based on the company’s cost information, tolerance is set at 0.0009. What should
the target specification (“target specs”) for the product be?
66. Quality costs for services include:
67. Which of the following is not a nonfinancial quality metric?
68. A quality circle:
69. Within the context of managing and controlling quality, the term “tolerance” refers to all
of the following except:
70. Ladder Manufacturing specifies the quality characteristic of one of its popular products
to be 0.400″ ± 0.010. An analysis of company records for the last two years suggests that the
average cost for warranty repair or replacement is $100 per unit. The customer service manager
believes that the product is likely to fail during the warranty period when the quality
characteristic exceeds on either side of the target of 0.400, by the tolerance of 0.010.
What is the cost coefficient,
k
, for the Taguchi Quality Loss Function (QLF) associated with this
situation?
71. Ladder Manufacturing specifies the quality characteristic of one of its popular products
to be 0.400″ ± 0.010. An analysis of company records for the last two years suggests that the
average cost for warranty repair or replacement is $100 per unit. The customer service manager
believes that the product is likely to fail during the warranty period when the quality
characteristic exceeds on either side of the target of 0.400, by the tolerance of 0.010.
What is the amount of the estimated loss,
L
(
x
), using a Taguchi Quality Loss Function (QLF),
when the actual quality characteristic,
x
, is 0.405?
72. Ladder Manufacturing specifies the quality characteristic of one of its popular products
to be 0.400″ ± 0.010. An analysis of company records for the last two years suggests that the
average cost for warranty repair or replacement is $100 per unit. The customer service manager
believes that the product is likely to fail during the warranty period when the quality
characteristic exceeds on either side of the target of 0.400, by the tolerance of 0.010.
What is the amount of the estimated loss,
L
(
x
), using a Taguchi Quality Loss Function (QLF), if
the actual quality characteristic,
x
, is 0.41?
73. Which of the following is not a characteristic of a lean accounting system?
74. Value stream income statements, which are part of a lean accounting system, have all of
the following characteristics except:
75. Which of the following is not a point of difference between lean manufacturing and
traditional manufacturing processes?
76. Lean manufacturing principles are derived in large part from the Toyota Production
System (TPS). Which of the following is not associated with the TPS?
77. One of the key elements of lean accounting is the use of the value stream income
statement. Which of the following is not a characteristic of value stream income?
78. Which of the following is not one of the five principles of lean manufacturing?
79. Which of the following is not a characteristic of lean manufacturing?
80. Which of the following is not a characteristic of a lean accounting system?
81. Which of the following approaches to cost-system design is likely
most appropriate
for a
lean manufacturing context?
82. Value stream costing attempts to do all of the following except:
83. Which of the following nonfinancial performance indicators would be least applicable in a
lean accounting system?
84. In a lean accounting system, costs are assigned to products by:
85. Which of the following terms represents the unyielding and continuous effort by everyone
in the organization to understand, meet, and exceed customer expectations?
86. Which of the following is not a likely consequence of improved product quality?
87. Which of the following is not a likely consequence of investments made to improve
quality?
88. Which of the following statements is not true?
89. Six Sigma, absolute versus goalpost, and Taguchi Quality Loss Functions (QLF) all
represent ways to:
90. According to the text, which of the following items is not considered a broad guideline
that can be used in the construction of a comprehensive framework (or system) for the
management and control of
performance quality
?
91. Which of the following terms refers to a mathematical depiction of estimated quality
costs as a function of the level of deviation from a quality target?
92. Which of the following items represents a quadratic loss function associated with
deviation of actual quality from target quality?
93. Which of the following would not be expected in response to a move to a Just–in-Time
(JIT) production philosophy?