THE UNIVERSITY OF THE WEST INDIES Semester! 63) Semester tC] suppiementatiSummer Schoo! L] Examinations of December Bl /Apri/May ) /July (2019-2020 Originating Campus: Cave Hill «= Mona st. Augustine C1) Mode: OnCampus & By Distance C) Course Code and Title: MGMT3057 - Producti and Quality Management Date: Thurs. Dec. 5, 2019 Time: 9:00 ~ 11:00 a.m. Duration: 2 Hours Paper No: Final Examination Materials required: Answer booklet: Normal BB speciat OF Notrequired Calculator: Programmable CJ Non Programmable CI (where applicable) Multiple Choice answer sheets: numerical alphabetical D120 O 1.1000 Auxtliary/Other matorial's) ~ Please specity: Candidates are permitted to bring the following items to their desks: Pen, Marker, Ruler, UWI ID Card, UWI Examination Card, and Calculator Instructions to Candidates: This exam has 7 pages and 5 questions. Answer any three (3) questions and start each question on a new page. Good Luck! ‘Semester 1201972020 ‘The University of the West indies Course Code: MGWT3057_ 20181.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 cheque processing and report preparation. The computerized approach, however, has problems. Over the past 20 months. the printers have broken down at the rate indicated in the following table # of Breakdowns # of Months That Quantity of Breakdowns Occurred 0 2 7 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 breakdowns, 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) (li) List and discuss standard process improvement strategies. Please provide examples to support your answer. (7 Marks) ‘Semester 1 2019/2020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 +/- 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 Cyx 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 chart (show full working of your calculations) (12 Marks) Sampie Number | Number of Errors | Sample Number | Number of Errors 1 | 6 7 7 6 2 5 12 i sf 3 s i 4 7 14 7 5 4 15 5 | 6 2 16 a | 7 3 7 7 8 3 18 “3+ cae 3 ao 0 10 2 20 4 | ‘Semester 1 2019/2020QUESTION (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) 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 examples to support your answer. (10 Marks) (8) “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. Provide examples to support your answer. (10 Marks) ester 1 2019/2020QUESTION 5. (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 the results, Show full working of your calculations. (5 Marks) (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) \(C) Stulf, stamp, seal, and sort envelopes Job Element 7 17273 [4] 5 | Performance | - _| Rating TA) Compose and type letter To [9 [at | it 120% 118) Type envelope address 127 z[Tys 708% zPatTs 2a 110% ‘Semester 4 2019/2020FORMULA SHEET Upper control limit (UCL) =%+20; Lower control limit (LCL) = ¥- 2: Upper contro imit (UCL) = +A, Lower contol limit LCL) =F =A Upper control imit (UCL) = DJR Lower contro imi (Lc) =O, UCL, =P + z0, LCL,=p-2z05 8 P = Total number of errors Total number of records examined T= mean number defective in the sample Upper Speceton - Lowe Speciation Se Ry=RYXRXRAK ne K Ry Redundancy = Number of failures Number of units tested * 100% FR(%) = FR Number of failures () = Number of unit hours of operatingtime = MTBF= FRE (Grecndaum") = [[tenssch.) « (seceasr*"]} Expected Expected number) , (Cost per breakdown cost ) = of breakdowns. breakdown, (Crstttte cou) * t = ane Semester 1 2019/2020a) « (tasers) Control Chart Factors Semple Size" Maan Factor “Upper Range Lower Range oy a Ay 2 1.880 3.268 0 3 1.023 2.574 0 4 ng 2.282 0 5 sit 2415 0 6 483 2.004 0 U 19 1.924 0.076 a 33 1.864 0.136 9 3 1.816 0.184 10 08 1am 0.23 2 286 4116 0.284 END OF QUESTION PAPER THANK YOU © ‘Semester 4 2010/2020