SIGMA Date: 12th May 2007. Time: 2-5pm.

1. Answer all questions. Different sections carry different marks. 2. Use calculators wherever required. SECTION ONE. Objective questions (20 X 1 marks)

Note: This section may have multiple answers to a given question. Answer carefully. No partial marks will be given. Q1. For a normal distribution, six standard deviations on each side of the mean would cover a. Approximately 99.99998% of total population b. Approximately 99.23739% of total population c. Approximately 99.73124% of total population d. None of the above Q2. Input for QFD comes from a. Voice of Customer b. Surveys c. Internal Data d. Customer Satisfaction Form Q3. Process Mapping helps in a. Visualizing the activities b. Understanding the overall picture c. Identifying the bottle necks d. Identifying the waste in the process

Q4. When referring to a curve that tails off to the left end, you would call it a. Symmetrical b. Skewed right c. Skewed left d. All of these e. None of these Q5. The Central Limit theorem a. Requires some knowledge of the frequency distribution b. Permits us to use sample statistics to make inferences about population parameters c. Relates the shape of a sampling distribution of the mean to the mean of the sample


d. Requires a sample to contain fewer than 30 observations Q6. A major Automobile manufacturer has had to recall several models from its 1993 line due to quality controlproblems that were not discovered with its random final inspection procedures. This is an example of a. Type I error b. Type II error c. Both Type I and Type II error d. Neither type of error Q7. If we say that Alpha = 0.10 for a particular hypothesis test, we are saying that a.10% is our minimum standard for acceptable probability b.10%is the risk we take of rejecting a hypothesis that is true c.10% is the risk we take of accepting a hypothesis that is false d. (a) and (b) only e. (a) and (c) only Q8. Which one of the following terms does not belong with the others? a. Ishikawa Diagram b. Pareto Diagram c. Fishbone diagram d. Cause and Effect Diagram Q9. Which Kind of variation can be seen in a control chart a. Inherent variation b. Special Cause variation c. Random variation d. Patterns in variation Q10. In the equation Y = A + BX +e, the e represents a. The X intercept of the observed data b. The value of Y to which others are compared to determine the best fit c. Random disturbances from the population regression line d. None of these Q 11. A statistical technique to assess, monitor and maintain the stability of a process. a. Pareto Chart b. Control Chart c. Run Chart d. Cause and Effect Diagram e. Histogram Q.12. If a bar chart is seen arranged in the descending order of frequencies, then you are seeing a a. Pareto Chart b. Bar Chart c. Histogram d. Control Chart e. Flow Chart f. Run Chart


Q13. In Statistics, ‘Mean’, ‘Median’ and ‘Mode’ are measures of a. Central Tendency b. Variance c. Deviation (Standard Deviation) d. Dispersion Q14. What are the characteristics of discrete data? a. Location b. Spread c. Shape d. Opportunity for Error Q15. Out of the following, what can be used for transforming the non-normal data? a. Y2 b. Y3 c. 1/Y d. Box-Cox transformation Q16. The following are the different types of benchmarking a. Internal b. Functional c. Competitive d. Hierarchical Q17. Concluding a manager A is better than manager B when they are at the same level of efficiency, the following error is made. a. Type I b. Type II c. Type III d. Type IV Q18. The following are the prioritization tools for identifying the right contributors to an out put. a. Pareto b. Regression c. Correlation d. FMEA Q19. F-test is used to a. test if two variances are equal b. test if two means are equal c. test if two ratios are equal d. all of the above e. none of the above. Q20. If an opportunity for error is 2, the defect per opportunities is calculated as a. Defects Per Unit * 2 b. Defects Per Unit / 2 c. (Defects Per Unit)2


d. Defects Per Unit + 2 SECTION 2 TRUE/FALSE (10 X 1 mark)

1. Do not apply SPC tools to processes that are known to be out of control. 2. A specification is a customer-defined tolerance for the output unit characteristics
and it can be one sided or two sided. 3. Upper and lower control limits for control charts usually represent 4.5 standard deviations from the mean value of the variable measured.

4. Assuming a linear relationship between X and Y, there is a strong negative
relationship between them if the coefficient of correlation (r) equals -0.10.

5. The Six Sigma Management approach is based on the concept that a process should
not create more than 3.4 defects per million products produced or services rendered which is equivalent to six standard deviations from the mean of the monitored variable. 6. Central Tendency, Spread and Shape are the characteristics of discrete data.

7. σ total variation.


σ process


σ measurement

where σ is measurement system

8. In order to measure process capability, the process to be measured must only have
common causes of variation. 9. Discrete data does not allow understanding the process variation and needs larger samples for analysis. 10. If the population distribution is sufficiently skewed or the sample size is sufficiently small (<30) then the population parameter cannot be tested. SECTION 3: Fill in the Blanks 2. When P value is more than alpha, null hypothesis is _____________. 3. A good P value, but poor R2 value in regression is due to ______________. 4. The six sigma project sponsorship is provided by _______________. 5. ___________ is a precise description that tells how to get a value for the characteristic you are trying to measure. 6. Looking at the data set 40,20,10,20,50,90,80,30,20,40, the mean is _________, mode is _______ and median is _________ ( 10 X 1 Mark)

1. Multiple regression analysis is for ______ response and _________ contributors.


7. Data that is derived from counting is ________ data and data that is derived from measuring is ________ data. 8. Flow chart is for process analysis as Scatter Diagram is for ________________. 9. The best tool for analyzing the relationship, over time, between quantitative data from two variables suspected to influence one another is _____________. 10. All possible combinations of the levels of factors are studied in ____________ designs. SECTION 4: Match the following
COLUMN 1 1. A measurement system that is consistent in its variability 2. A measurement system that is consistent when different appraisers produce consistent results 3. Organizing ideas into meaningful categories by recognizing their underlying similarity 4. Plots of data arranged in a time sequence 5. Running a trial combination twice without changing the setting in an experiment 6. A technique to make errors difficult to happen 7. Out of control process 8. Single Customer CTQ 9. Green Belt 10. Two sample t-test

(10X1 Mark)
COLUMN 2 A. Affinity Diagram B.Quality Function Deployment C. Poka-Yoke D. Zone rules E. CTQ Drill Down F. Repetition G. Affinity Diagram H. Reproducibility I. Six Sigma Project Manager J. Replication K. Six Sigma Project Sponsor L. Repeatability M. Elevator Speech N. Benchmarking of two sets of data

SECTION 5: Numerical Questions

(4X5 Marks)

1. An accounts firm knows that homogeneity in work experience affects effectiveness of account executives. It collects the following data on years of experience for its executives in office 1 & 2. Which office is more effective?
Office 1 4 3 6 5 5 2 5 4 6 Office 2 7 2 3 4 7 4 2 4



Ans: The mean for Office 1 is 4.40 and Std deviation is 1.26. Office 2 is 4.125 and Std deviation is 1.95. The range also varies from 2.49 to 5.76. Hence Office 1 is more effective. 2. A candy bar manufacturer is interested in estimating how sales are influenced by the price of their product. They randomly choose 6 small cities of similar characteristics and offer a candy bar at different prices in each of them, then collect the following data as described in the table. If candy bar sales are the dependent variable (Y) and the company conducts a simple linear regression answer the following questions.
City Chennai Bangalore Hyderabad Calcutta Delhi Mumbai Price 1.30 1.60 1.80 2.00 2.50 2.90 Number Sold 100 90 90 40 38 32

a) What is the estimated slope parameter for the candy bar price and sales data? 47.3 b) What is the percentage of the total variation in candy bar sales explained by the regression model? 79.5% c) If the price of the candy bar is set at $2, what is the value for predicted sales? 65/66
Answer: The regression equation is Number Sold = 160 - 47.3 Price R-Sq value is 79.5% and P value is 0.003. Predictor Coef SE Coef T P Constant 160.39 25.04 6.41 0.003 Price -47.30 11.99 -3.94 0.017 S = 15.8596 R-Sq = 79.5% R-Sq(adj) = 74.4%

3. A quality control analyst for a light bulb manufacturer is concerned that the time it takes to produce a batch of light bulbs is too erratic. Accordingly, the analyst randomly surveys 10 production periods each day for 14 days and records the sample mean and range for each day: Day 1 2 3 4 Mean 58.5 47.6 64.3 60.6 Range 5.1 7.8 6.1 5.7


5 6 7 8 9 10 11 12 13 14

63.7 57.5 55.0 54.9 55.0 62.7 61.9 60.0 58.3 52.0

6.2 6.0 5.4 6.1 5.9 5.0 7.1 6.5 5.9 5.2

a) What is the center line and Lower Control Limit if the analyst constructs an R chart of this data to see if the variability in production times is in-control? LCL – 3.565 CL – 6 b) Suppose the analyst constructs a control chart for the mean to see if the production process is in-control, what will be your final conclusions for process stability and the deviations? LCL – 45.38 CL – 58 UCL -70.62 Though the process is within control limits, the trend shows that the process is not very stable and consistent. 4. Kailash is the Pizza Hut dispatcher for Jayanagar area. He wants pizzas delivered to the customers within 30 minutes of leaving the kitchens. Pizzas with longer delivery times tend to be too cold when they arrive. Each of his 10 volunteer drivers is responsible for delivering 15 Pizzas daily. Over the past 1 month , Kailash has recorded the percentage of each day's 150 Pizzas that were delivered on time and the data is shown below. a) Which control chart Kailash will use to see whether the delivery process is in control? Simple X bar chart b) Mention the no of days when the process is out of control and which is worrying to Kailash None. c) What action do you recommend for Kailash?
Day 1 2 3 4 5 6 7 8 % on time 89.33 81.33 95.33 88.67 96 86.67 98 84 Day 16 17 18 19 20 21 22 23 % on time 89.33 89.33 78.67 94 94 99.33 95.33 94.67


9 10 11 12 13 14 15

90.67 80.67 88 86.67 96.67 85.33 78.67

24 25 26 27 28 29 30

92.67 81.33 89.33 99.33 90.67 92 88

SECTION 6: Case Analysis

( 1 X 20 Marks)

Refer to the attached Case Study. This talks about an account growth six sigma project executed in a particular organization. Criticize the approach they have taken in executing this DMAIC project based on your knowledge learnt from this course. DON’T write stories. Provide the bullet points for positives and negatives individually. The case analysis should not go beyond 2 pages of the answer paper. Long answers will be penalized. Mentioning only the tools will NOT yield any marks. Any tool usage should be justified for the right use in the right phase. --------------------------------- END OF QUESTION PAPER-----------------------------------------


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