THE UNIVERSITY OF THE WEST INDIES

Semester I E2 Semester II 0 Supplemental/Summer School 0

Examinations of December KI /April/May 0 /July 0 2018-2019

Originating Campus: Cave Hill 0 Mona & WJC KI St. Augustine 0

Mode: On Campus Ki By Distance 0

Course Code and Title: MGMT3057 - Productivity and Quality Management

Date: Tuesday, December 4, 2018 Time: 9 : 00 a .m.

Duration: 2 Hours Paper No: Final Examination

Materials required:

Answer booklet: Normal IM Special 0 Not required 0

Calculator: Programmable 0 Non Programmable KI (where applicable)

Multiple Choice answer sheets: numerical 0 alphabetical 0 1-100

Auxiliary/Other material(s)— Please specify: None

Candidates are permitted to bring the following items to their desks:

Pen, Marker, Ruler, LIWI ID Card, LIWI Examination Card, and Calculator

Instructions to Candidates: This exam has 7 pages and 5 questions (20 marks each).

Please select any three (3) questions and start each answer on a new page.

Candidates are reminded that the examiners shall take into account the proper use of the English
language in determining the mark for each response.

Good Luck

Semester 1 - 2018/2019

The University of the West Indies Course Code: MGM13057 g 2018/19

 2

QUESTION 1:

(A) Farlen & Helikman is a CPA firm specializing in payroll preparation. The firm
has been successful in automating much of its work, using high-speed printers
for check processing and report preparation.

The computerized approach, however, has problem. Over the past 20 months, the
printers have broken down at the rate indicated in the following table

Number of Breakdown Number of Months That Breakdown Occurred

0 2
1 8

2 6

3 4

Each time the printers break down, Farlen & Halikman estimates that it loses an
average of $300 in production time and service expenses. One alternative is to
purchase a service contract for preventive maintenance. Even if Farlen &
Halikman contracts for preventive maintenance, there will still be breakdown,
averaging one breakdown per month. The price of this service is $150 per month.

Should CPA firm contract for preventive maintenance? Justify your answer, by
showing the necessary calculations. (10 Marks)

(B) "One of the elements of total quality is continual improvement."

(i) What is management's role in continual improvement of processes?

(3 Marks)

(ii)List and discuss standard process improvement strategies. Please provide

examples to support your answer. (7 Marks)

Semester 1 .201812019
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QUESTION 2:
(A) You are the process improvement manager and have developed a new
machine to cut insoles for the company's top-of-the-line running shoes. You are
excited because the company's goal is no more than 3.4 defects per million and
this machine may be the innovation you need. The insole cannot be more than +1-
0.001 of an inch from the required thickness of 0.250 inch. You want to know if
you should replace the existing machine, which has a Cpk of 1. Estimated
standard deviation of new process is 0.0005 inch. Show full working of your
calculations. (8 Marks)

(B) Clerks at Mosier Data Systems key in thousands of insurance records each
day for a variety of client firms. CEO Donna Mosier wants to set control limits to
include 99.73% (z=3) of the random variation in the data entry process when it is
in control. Samples of the work of 20 clerks are gathered (and shown in the table
below). Mosier carefully examines 100 records entered by each clerk and counts
the number of errors. Calculate the control limits and develop appropriate control
(12 Marks)
chart (show full working of your calculations).

Sample Number Number of Errors Sample Number Number of Errors

6 11 6
1
5 12 1
2
3 0 13 8
4 1 14 7
4 15 5
5
2 16 4
6
5 17 11
7
3 18 3
8
3 19 0
9
2 20 4
10

Semester
_a9 '
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QUESTION 3:
(A) The manager of Michigan County's welfare office, Dana Johnson, estimates
that her employees are idle 25% of the time. She would like to take a work
sample that is accurate within 3% and wants to have 95.45% (z=2) confidence in
(5 Marks)
the results. Show full working of your calculations.

(B) Management Science Associates promotes its management development

seminars by mailing thousands of individually composed and typed letters to
various firms. A time study has been conducted on the task of preparing letters
for mailing. On the basis of the following observations, develop a time standard
for this task. The firm's personal, delay, and fatigue allowance factor is 15%.
Please show full working of your calculations as you standardize the time.
(15 Marks)

Observations (Minutes)
_
1 2 3 4 5 Performance
Job Element Rating
- 120%
8 10 9 21 11
(A) Compose and type letter
2 3 2 1 3 105%
(B) Type envelope address
2 1 5 2 1 110%
—(C) Stuff, stamp, seal, and sort envelopes

QUESTION 4:

(A) "Quality means that the organization's culture is defined by and supports the
constant attainment of customer satisfaction through an integrated system of
tools, techniques and training." How organizations that develop and maintain a
quality culture differ significantly from those with a traditional culture. Provide
(10 Marks)
examples to support your answer.

(B) "Leadership for quality is based on the philosophy that continually improving
work methods and processes will, in turn, improve quality, productivity, cost and
return on investment." List and discuss key principles of leadership for quality.
(10 Marks)
Provide examples to support your answer.

Semester 1 - 2018/2019
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QUESTION 5:
(A) What is management's role in benchmarking? What are the prerequisites
management should check before getting involved in benchmarking? What are
some of the common obstacles to successful benchmarking? Please provide
examples to support your answer. (15 Marks)

(B) Twenty air conditioning systems designed for use by astronauts in NASA's
space shuttles were operated for 1,000 hours at NASA's Huntsville, Alabama,
test facility. Two of the systems failed during the test — one after 200 hours and
the other after 600 hours. If the typical space shuttle trip lasts 6 days, what is
NASA's failure rate per trip? Please show full working of your calculations.
(5 Marks)

Semester 1 - 2018/2019


FORMULA SHEET

Upper control limit (UCL) = ; + Za;Lower control limit (LCL) zag

=

i.+A2FT Lower control limit (LCL)=ii-A2k

Upper control limit (UCL)=

Upper control limit (UCLR)= DA' Lower control limit (LCLR) =

UCLp = p zcs-13 LCLp = - zai

s

P = Total number of errors

Total number of records examined

c 5y 117
.7
1— 4 a
1-7-
n Cri = •ri

=3i
LCL, .5- re

C =
mean number defective in the sample
= Upper Specification -Lower Specification
6a

[Upper LOS/et
pecification - Specification
Co = minimum of SD cation
' Limit
30 30

R, = x R2 X R3 X ... X R,

rs1 s9 [P
CP r oc 5) rib o; ontordliln
orfosbeacbollnl tat] [P itri
component • component X second
working working component
Redundancy
=

ofoL l Number of failures

Fum - Number of units tested x 100%
Number of failures
FR(N) =
Number of unit hours of operatingtime

1
MTBF -
FR(N)

(Expected nu mbo r [ :.oagowns

0umr (Corresponding
of rresonding
of frequency

Expected 1 _ (Expected number) (Cost per )

(breakdown cost " of breakdowns breakdown
) (Cost
Cost of expected Cost of
ntive
(Preve = breakdowns if service) + (service contract)
maintenance cost signed

Semester 1 - 201812019
 7

(Sum of the times recorded)

Average to perform each element
observed
time Number of observations

Average ) [Performance)
[ observed s rating factor
Normal time =
time

Total normal time

Standard time =
1 -Allowance factor

S P( 1 -
n
=hz

Control Chart Factors

Sample Size Mean Factor Upper Range Lower Range
A2 D4 03

1.880 3.268 0
3 1.023 2.574 0
4 .729 2.282 0
5 .577 2.115 0
6 .483 2.004 0
7 .419 1.924 0.076
8 .373 1.864 0.136
9 .337 1.816 0.184
10 .308 1.777 0.223
12 .266 1.716 0.284

END OF QUESTION PAPER

THANK YOU e

Semester 1 -2018/2019