SOLVED PROBLEMS IN

INDUSTRIAL QUALITY CONTROL

2013
 Solved Problems in Industrial Quality Control 2013

FORMULAS IN INDUSTRIAL QUALITY CONTROL

I. Cost of Quality

Total Quality Costs

Quality Index = --------------------------------- (100)
Base

Total Quality Costs

Quality Sales Index = -------------------------------------------- (100)
Total Sales

Total Quality Costs

Quality Manufacturing Cost Index = -------------------------------------------- (100)
Total Manufacturing Cost

II. Productivity

Output
Productivity = -----------------
Input

Yield = (Total Input) (%Good Units) + (Total Input) (1 – %Good Units) (%Reworked)

Yield = (I) (%G) + (I) (1 – %G) (%R)

Where

I = planned number of units of product started in the production process

%G = percentage of good units produced
%R = percentage of defective units that are successfully reworked

(Direct Manufacturing Cost per Unit)(Input) + (Rework Cost per Unit)(Reworked Units)
Product Cost = --------------------------------------------------------------------------------------------------------------------
Yield

(Kd)(I) + (Kr)(R)
Product Cost = ----------------------------------------------
Y

Where

Kd = direct manufacturing cost per unit

I = input
Kr = rework cost per unit
R = reworked units
Y = yield

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Product Yield for a Multistage Process Without Reworking

Y = (I)(%G1)(%G2) … (%Gn)

Where

I = input of items to the production process that will result in finished products
Gi = good quality, work in process products at stage i

Quality Productivity Ratio

Good-Quality Units
QPR = --------------------------------------------------------------------------------- (100)
(Input)(Processing Cost) + (Defective Units)(Rework Cost)

III. Control Chart for Attributes

p-Chart

Upper Control Limit (UCL) = p + zp

Lower Control Limit (LCL) = p – zp

Where

z = the number of standard deviations from the process average

p = the sample proportion defective; an estimate of the process average

Total Defectives
p = ----------------------------------------------
Total Sample Observations

p = the standard deviation of the sample proportion

p (1 – p)
p = ---------------------
n

n = sample size

Therefore,

p (1 – p)
UCL = p + z ---------------------
n

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p (1 – p)
LCL = p - z ---------------------
n

c-Chart

UCL = c + zc

LCL = c - zc

Where

Total Number of Defects

c = ---------------------------------------------
Number of Samples

UCL = c + z c

LCL = c – z c

IV. Control Charts for Variables

Range (R-) Chart

UCL = D4R

LCL = D3R

Where

R = the average range (and center line) for the samples

R
R = -----------------
k

R = range of each sample

k = number of samples

Mean (x-) Chart

x1 + x2 + …. xn
x = ------------------------------------
k

UCL = x + A2R

LCL = x – A2R

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Factors for Determining Control Limits for x- and R-Charts

Sample Size Factors for x-Chart Factors for R-Chart

n A2 D3 D4

2 1.88 0 3.27
3 1.02 0 2.57
4 0.73 0 2.28
5 0.58 0 2.11
6 0.48 0 2.00
7 0.42 0.08 1.92
8 0.37 0.14 1.86
9 0.34 0.18 1.82
10 0.31 0.22 1.78
11 0.29 0.26 1.74
12 0.27 0.28 1.72
13 0.25 0.31 1.69
14 0.24 0.33 1.67
15 0.22 0.35 1.65
16 0.21 0.36 1.64
17 0.20 0.38 1.62
18 0.19 0.39 1.61
19 0.19 0.40 1.60
20 0.18 0.41 1.59
21 0.17 0.43 1.58
22 0.17 0.43 1.57
23 0.16 0.44 1.56
24 0.16 0.45 1.55
25 0.15 0.46 1.54

VI. Cost to Justify Inspection

Total (100 percent) inspection is justified when the cost of a loss incurred by not inspecting is greater than
the cost of inspection.

Example: Suppose a faulty item results in a $10 loss. If the average percentage of defective items in a lot
is 3 percent, the expected cost of faulty items is 0.03 x $10, or $0.30 each. Therefore, if the cost of
inspecting each item is less than $0.30, the economic decision is to perform 100 percent inspection.

VII. Reliability

Rule 1: If two or more events are independent and success is defined as the probability that all of the
events occur, then the probability of success is equal to the product of the probabilities of the events.

Rule 2: If two events are independent and success is defined as the probability that at least one of the
events will occur, the probability of success is equal to the probability of either one plus 1.00 minus that
probability multiplied by the other probability.

Rule 3: If two or more events are involved and success is defined as the probability that at least one of
them occurs, the probability of success is 1 – P (all fail).

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VIII. Mean Time Before Failures (MTBF)

MTBF is the average length of time between failures of product or component.

1. Exponential Distribution:

Using the symbol T to represent length of service, the probability that failure will not occur before time T is
determined:
-T/MTBF
P(no failure before T) = e^

Where

e = 2.7183…
T= Length of service before failure
MTBF = Mean time between failures

The probability that failure will occur before time T is:

-T/MTBF
P(failure befire T) = 1 – e^

2. Normal Distribution

To obtain a probability that service life will not exceed some value T, compute z and refer to normal
distribution table.

T – Mean wear-out time

z = --------------------------------------------------------------
Standard deviation of wear-out time

To find the reliability for time T, subtract this probability from 100 percent. To obtain the value of T that will
provide a given probability, locate the nearest probability under the curve to the left of the normal
distribution table. Then use the corresponding z in the preceding formula and solve for T.

Availability

It measures the fraction of time a piece of equipment is expected to be operational (as opposed to being
down for repairs). It is a function of both the mean time between failures and the mean time to repair. The
availability factor can be computed using the following formula:

MTBF
Availability = ---------------------------------
MTBF – MTR

Where

MTBF = Mean time before failures

MTR = Mean time to repair

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IX. Process Capability

Machine Capability = Process Width = 6 = 6 standard deviations

Specification Width = Upper Specification – Lower Specification

Specification Width
Process Capability Ratio, Cp = -------------------------------
Process Width

or

Specification Width
Process Capability Ratio, Cp = -------------------------------
Process Width

Notes: A Cp or ratio of 1.00 would mean that the process is just barely capable. The current trend is to
aim for a Cp or ratio of at least 1.33 to allow some leeway. A ratio of 1.00 implies 2700 parts per million
(ppm) or 3 sigma while 1.33 implies only about 30 ppm. A ratio of 2.0 is 6 sigma or 3.7 ppm.

Cpk

It is used to compute the process capability to take the process mean into account and if a process is not
centered. It is computed by finding the difference between each of the specification limits and the mean,
identifying the smaller difference, and dividing that difference by three standard deviations of the process.

Upper Specification – Process Mean

Cpk = ---------------------------------------------------------
3

and

Process Mean – Lower Specification

Cpk = ---------------------------------------------------------
3

Choose the smaller Cpk.

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SOLVED PROBLEMS IN INDUSTRIAL QUALITY CONTROL - QUALITATIVE

1. The design of a product or a service that can withstand variations in environmental and operating
conditions.

a. Form Design b. Functional Design

c. Robust Design d. Modular Design

Answer: c. Robust Design

2. It involves designing quality characteristics into a product or service.

a. Quality of Design b. Dimensions of Quality

c. Quality of Conformance d. Fitness for Use

Answer: a. Quality of Design

3. The probability of accepting a lot in which the fraction of defective items exceeds the most the
consumer is willing to accept.

a. Consumer’s Risk b. Lot Tolerance Percent Defective

c. Producer’s Risk d. Acceptable Quality Level

Answer: a. Consumer’s Risk

4. Using commonly available parts that are interchangeable among products.

a. Value Analysis b. Standardization

c. Simplification d. Quality Function Deployment

Answer: b. Standardization

5. An author of the book Quality Is Free who emphasized that the costs of poor quality far outweigh the
cost of preventing poor quality.

a. Armand Feigenbaum b. W.E. Deming

c. Philip Crosby d. Joseph Juran

Answer: c. Philip Crosby

6. The probability of rejecting a lot that has an acceptable quality level.

a. Consumer’s Risk b. Lot Tolerance Percent Defective

c. Producer’s Risk d. Acceptable Quality Level

Answer: c. Producer’s Risk

7. It is the range of natural variability in a process essentially what we measure with control charts. The
inherent variability of process output relative to the variation allowed by the design specification.

a. Random Test b. Conformance Test

c. Pattern Test d. Process Capability

Answer: d. Process Capability

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8. Engineering analysis performed at a computer terminal with information from CAD database.

a. Computer-Aided Design b. Computer Aided Engineering

c. Design for Assembly d. Design for Manufacturing

Answer: b. Computer-Aided Engineering

9. Costs incurred when poor quality products are discovered before they are delivered to the customer
that includes scrap, rework, process failure, downtime, and price reductions

a. Quality Planning Costs b. Appraisal Costs

c. Internal Failure Costs d. Process Costs

Answer: c. Internal Failure Costs

10. A visual method for analyzing the interrelationships among failures.

a. Cause and Effect Diagram b. Tree Diagram

c. Fault Tree Analysis d. Failure Mode and Effects Analysis

Answer: c. Fault Tree Analysis

11. A measure of productivity, the sum of good-quality and reworked units.

a. Cost Index b. Index Number

c. Quality-Productivity Ratio d. Yield

Answer: d. Yield

12. Designing a product so that it can be produced easily and economically.

a. Design for Assembly b. Design for Environment

c. Design for Manufacture d. Design for Material

Answer: c. Design for Manufacture

13. Carefully dismantling and inspecting a competitor’s product to look for design features that can be
incorporated into your own product.

a. Concurrent Engineering b. Reverse Engineering

c. Value Engineering d. Materials Engineering

Answer: b. Reverse Engineering

14. A type of control chart that uses the actual number of defects per item in a sample is called –

a. x-Chart b. R-Chart
c. c-Chart d. p-Chart

Answer: c. c-Chart

15. A set of procedures for reducing the number of parts in an assembly, evaluating methods of
assembly, and determining an assembly sequence.

a. Line Balancing b. Assembly Chart

c. Design for Assembly d. Design for Manufacturing

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Answer: c. Design for Assembly

16. It can indicate an out-of-control process even if sample values are within control limits

a. Pattern b. Run
c. Zone d. Trend

Answer: a. Pattern

17. The mixture of physical items, sensual benefits, and psychological benefits provided to the customer.

a. Product Mix b. Service Package

c. Suggestion Scheme d. Voice of the Customer

Answer: b. Service Package

18. Six-sigma limits correspond to –

a. 2.7 defective parts per thousand b. 7.2 defective parts per thousand
c. 3.4 defective parts per million d. 4.3 defective parts per million

Answer: c. 3.4 defective parts per million

19. An author and consultant on quality who focused on strategic quality planning that determines the
product quality level and designs the production process to achieve the quality characteristics of the
product.

a. Armand Feigenbaum b. W.E. Deming

c. Philip Crosby d. Joseph Juran

Answer: d. Joseph Juran

20. It is accepting or rejecting a production lot based on the number of defects in a sample is called –

a. Sampling b. Acceptance Sampling

c. Sampling Plan d. Sampling Distribution

Answer: b. Acceptance Sampling

21. The basic operating characteristics of a product.

a. Features b. Conformance
c. Performance d. Serviceability

Answer: c. Performance

22. A structured process that translates the voice of the customer into technical design requirements.

a. Quality Function Deployment b. Customer Survey

c. Matrix Diagram d. Perceptual Map

Answer: a. Quality Function Deployment

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23. The expected number of defective items that will pass on to the customer with a sampling plan.

a. Acceptance Quality Level b. Average Outgoing Quality

c. Sigma Limits d. Acceptance Outgoing Quality

Answer: b. Average Outgoing Quality

24. It is how well the product or service does what is supposed to.

a. Quality of Design b. Dimensions of Quality

c. Quality of Conformance d. Fitness for Use

Answer: d. Fitness for Use

25. The maximum percentage defective items in a lot that the consumer will knowingly accept.

a. Consumer’s Risk b. Lot Tolerance Percent Defective

c. Producer’s Risk d. Acceptable Quality Level

Answer: b. Lot Tolerance Percent Defective

26. Combining standardized building blocks or modules in a variety of ways to create unique finished
products.

a. Form Design b. Functional Design

c. Robust Design d. Modular Design

Answer: d. Modular Design

27. A graph that measures the probability of accepting a lot for different proportions of defective items.

a. Histogram b. Scatter Diagram

c. Control Chart d. Operating Characteristic Curve

Answer: d. Operating Characteristic Curve

28. The degree to which a product meets pre-established standards.

a. Features b. Conformance
c. Performance d. Serviceability

Answer: b. Conformance

29. A software system that uses computer graphics to assist in the creation, modification, and analysis of
a design.

a. Computer-Aided Design b. Computer Aided Engineering

c. Design for Assembly d. Design for Manufacturing

Answer: a. Computer-Aided Design

30. A type of control chart that uses the proportion of defective items in a sample as the sample statistic is
called –

a. x-Chart b. R-Chart
c. c-Chart d. p-Chart

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Answer: d. p-Chart

31. Designing a product from material that can be a recycled or easily repaired rather than discarded.

a. Ergonomics b. Value Analysis

c. Design for Material d. Design for Environment

Answer: d. Design for Environment

32. Are the costs of measuring, testing, and analyzing materials, parts, products, and the productive
process to ensure that product quality specifications are being met.

a. Quality Planning Costs b. Appraisal Costs

c. Internal Failure Costs d. Process Costs

Answer: b. Appraisal Costs

33. A systematic approach for analyzing the cause and effects of product failures.

a. Cause and Effect Diagram b. Tree Diagram

c. Fault Tree Analysis d. Failure Mode and Effects Analysis

Answer: d. Failure Mode and Effects Analysis

34. A product characteristic that can be evaluated with a discrete response.

a. Sample b. Variable
c. Attribute d. Quality

Answer: c. Attribute

35. The phase of product design concerned with how the product looks.

a. Form Design b. Functional Design

c. Robust Design d. Proto-typing

Answer: a. Form Design

36. The phase of product design concerned with how the product performs.

a. Form Design b. Functional Design

c. Robust Design d. Modular Design

Answer: b. Functional Design

37. He introduced total quality control to reflect a total commitment of effort from management and
employees throughout an organization to improve on quality.

a. Armand Feigenbaum b. W.E. Deming

c. Philip Crosby d. Joseph Juran

Answer: a. Armand Feigenbaum

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38. The ratio of quality cost to manufacturing cost is called --

a. Cost Index b. Production Index

c. Labor Index d. Productivity Index

Answer: a. Cost Index

39. A visual method for comparing customer perceptions of different products or services.

a. Quality Function Deployment b. Customer Survey

c. Matrix Diagram d. Perceptual Map

Answer: d. Perceptual Map

40. The probability that a given part or product will perform its intended function for a specified period of
time under normal conditions of use.

a. Maintainability b. Reliability
c. Durability d. Serviceability

Answer: b. Reliability

41. The ease with which a product is maintained or repaired.

a. Maintainability b. Reliability
c. Durability d. Serviceability

Answer: a. Maintainability

42. Making sure the product or service is produced according to design is called –

a. Quality of Design b. Dimensions of Quality

c. Quality of Conformance d. Fitness for Use

Answer: c. Quality of Conformance

43. Reducing the number of parts, assemblies, or options in a product.

a. Value Analysis b. Standardization

c. Simplification d. Quality Function Deployment

Answer: c. Simplification

44. The fraction of defective items deemed acceptable in a lot.

a. Tolerances b. Sigma Limits

c. Acceptable Quality Level d. Control Limits

Answer: c. Acceptable Quality Level

45. An analytical approach for eliminating unnecessary design features and functions.

a. Value Analysis b. Standardization

c. Simplification d. Quality Function Deployment

Answer: a. Value Analysis

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46. It determines if the observations within the limits of a control chart display a nonrandom pattern.

a. Random Test b. Conformance Test

c. Pattern Test d. Process Capability

Answer: c. Pattern Test

47. The “extra” items added to the basic use of a product.

a. Features b. Conformance
c. Performance d. Serviceability

Answer: a. Features

48. It is a sequence of sample values that display the same characteristic.

a. Pattern b. Run
c. Zone d. Trend

Answer: b. Run

49. How long the product lasts; its life span before replacement.

a. Maintainability b. Reliability
c. Durability d. Seviceability

Answer: c. Durability

50. Finding the best-in-class product or process, measuring one’s performance against it, and making
recommendations for improvements based on the results.

a. Quality Function Deployment b. Benchmarking

c. Kaizen d. Value Analysis

Answer: b. Benchmarking

51. A range of acceptable values established by engineering design or customer requirements in which
individual units of output must fall in order to be acceptable.

a. Control Limits b. Specifications

c. Process Variability d. Process Capability

Answer: b. Specifications

52. It reflects the natural or inherent (i.e. random) variability in a process and it is measured in terms of
the process standard deviation.

a. Control Limits b. Specifications

c. Process Variability d. Process Capability

Answer: c. Process Variability

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SOLVED PROBLEMS IN INDUSTRIAL QUALITY CONTROL - QUANTITATIVE

1. Dominic Chemicals, Inc. produces expensive water-repellant, down-lined. The company implemented a
total quality management program in 1996. Following are quality-related accounting data that have
been accumulated for the past five-year period, or one year prior to the program’s start.

Year
1995 1996 1997 1998 1999
Quality Costs (000s)
Prevention $3.2 10.7 28.3 42.6 50.0
Appraisal 26.3 29.2 30.6 24.1 19.6
Internal Failure 39.1 51.3 48.4 35.9 32.1
External Failure 118.6 110.5 105.2 91.3 65.2
Accounting Measures (000s)
Sales 2700.6 2690.1 2705.3 2810.2 2880.7
Manufacturing Cost 420.9 423.4 424.7 436.1 435.5

Compute the company’s total failure costs as a percentage of total quality costs for all of the five
years.

a. 58.3% b. 65.6%
c. 72.5% d. 80.2%

Answer: c. 72.5%

% total failure cost = [(internal failure + external failure)/ total quality cost] x 100
1995 = (157.7/ 187.2) x 100 = 84.24%
1996 = (161.8/ 201.7) x 100 = 80.22%
1997 = (153.4/ 212.5) x 100 = 72.28%
1998 = (127.2/ 193.9) x 100 = 65.60%
1999 = (97.3/ 166.9) x 100 = 58.30%
% total failure cost = [(157.7+161.8+153.4+127.2+97.3)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total failure cost = [(697.4)/(962.2)] x 100 = 72.50%

2. In reference to problem no. 1, compute the total prevention cost, as a percentage of total quality costs,
during all of the five years.

a. 5.3% b. 14.0%
c. 22.0% d. 30.0%

Answer: b. 14.0%

% total prevention cost = (prevention cost/ total cost) x 100

1995 = (3.2/ 187.2) x 100 = 1.71%
1996 = (10.7/ 201.7) x 100 = 5.30%
1997 = (28.3/ 212.5) x 100 = 13.32%
1998 = (42.6/ 193.9) x 100 = 21.97%
1999 = (50/ 166.9) x 100 = 29.96%
% total prevention cost = [(3.2+10.7+28.3+42.6+50)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total prevention cost = [(134.8)/(962.2)] x 100 = 14%

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3. In reference to problem no. 1, compute the total appraisal cost, as a percentage of total costs, during
all of the five years.

a. 13.5% b. 14.5%
c. 12.4% d. 11.7%

Answer: a. 13.5%

% total appraisal cost = (appraisal cost/ total cost) x 100

1995 = (26.3/ 187.2) x 100 = 14.04%
1996 = (29.2/ 201.7) x 100 = 14.48%
1997 = (30.6/ 212.5) x 100 = 14.40%
1998 = (24.1/ 193.9) x 100 = 12.43%
1999 = (19.6/ 166.9) x 100 = 11.74%
% total appraisal cost = [(26.3+29.2+30.6+24.1+19.6)/(187.2+201.7+212.5+193.9+166.9)] x 100 =
% total appraisal cost = [(129.8)/(962.2)] x 100 = 13.50%

4. In reference to problem no. 1, compute the total quality-sales index for all of the five years.

a. 5.8 b. 7.0
c. 9.1 d. 11.0

Answer: b. 7.0

Total Quality Sales Index = (total quality cost/ sales) x 100

1995 = (187.2/ 2700.6) x 100 = 6.93
1996 = (201.7/ 2690.1) x 100 = 47.64
1997 = (212.5/ 2705.3) x 100 = 50.04
1998 = (193.9/ 2810.2) x 100 = 6.90
1999 = (166.9/ 2810.7) x 100 = 5.79
Total Quality Sales Index =
[(187.2+201.7+212.5+193.9+166.9)/(2700.6+2690.1+2705.3+2810.2+2810.7)] x 100 =
Total Quality Sales Index = [(962.2)/(13716.9)] x 100 = 7.0

5. In reference to problem no. 1, compute the total quality-cost index for all of the five years.

a. 38.3 b. 44.4
c. 45.0 d. 47.6

Answer: c. 45.0

Total Quality Cost Index = (Total Quality Cost/ Manufacturing Cost) x 100
1995 = (187.2/ 420.9) x 100 = 44.48
1996 = (201.7/ 423.4) x 100 = 47.64
1997 = (212.5/ 424.7) x 100 = 50.04
1998 = (193.9/ 436.1) x 100 = 44.46
1999 = (166.9/ 435.5) x 100 = 38.32
Total Quality Cost Index =
[(187.2+201.7+212.5+193.9+166.9)/(420.9+423.4+424.7+436.1+435.5)] x 100 =
Total Quality Cost Index = [(962.2)/(2140.6)] x 100 = 45.0

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6. The Dominique House Furniture Company manufactures two-drawer oak file cabinets that are sold
unassembled through catalogs. The company initiates production of 150 cabinet packages each week.
The percentage of good-quality cabinets averages 83 percent per week, and the percentage of poor-
quality cabinets that can be reworked is 60 percent. Determine the weekly product yield of file
cabinets.

a. 125 b. 130
c. 135 d. 140

Answer: d. 140

product yield = (total input)(% good units) + (total input)(1 - % good units)(% reworked)
product yield = 150(0.83) + 150(1 – 0.83)(0.60) = 139.8 ~ 140 units per week

7. In reference to problem no. 6, if the company desires a product yield of 145 units per week, what
increase in the percentage of good-quality products must result?

a. 90% b. 92%
c. 94% d. 96%

Answer: b. 92%

145 units per week = 150(% good units) + 150(1 - % good units)(0.60)
% good units = 91.67% = 92%

8. The Alberto Shoe Company manufactures a number of different styles of athletic shoes. Its biggest
seller is a running shoe. In 1997, Alberto implemented a quality management program. The company’s
shoe production for the past three years and manufacturing costs are as follows:

Year
1997 1998 1999
Units produced/ input 32,000 34,600 35,500
Manufacturing cost $278,000 291,000 305,000
Percent good quality 78% 83% 90%

Only one quarter of the defective shoes can be reworked, at a cost of $2.00 a piece. Compute the
manufacturing cost per good product for year 1997.

a. 8.56 b. 9.65
c. 10.54 d. 11.45

Answer: c. 10.54

Solution:

1997
Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked units)]/ yield
Product cost = {[(278,000/32000) x 32,000] + [2(1 – 0.78)(32,000)(0.25)]}/ [32000(0.78) + 32000(1 –
0.78)(0.25)] = $10.54

9. In reference to problem no.8, indicate the annual percentage increase or decrease in savings resulting
from the quality management program from 1997 to 1998.

a. 10.2% b. 9.1%
c. 8.7% d. 7.6%

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Answer: d. 7.6%

1998
Product cost = {[(291000/34600) x 34600] + [2(1 – 0.83)(34600)(0.25)]}/ [34600(0.83) + 34600(1 –
0.83)(0.25)] = $9.74

annual percentage increase or decrease resulting from the quality management program:
1997 vs. 1998
% increase/ decrease = [(10.54 – 9.74)/ 10.54] x 100 = 7.6%

10. In reference to problem no. 8, compute the manufacturing cost per good product for year 1999.

a. 8.8 b. 9.40
c. 10.2 d. 11.6

Answer: c. 9.40

1999
Product cost = {[(305000/35500) x 35500] + [2(1 – 0.90)(35500)(0.25)]}/ [35500(0.90) + 35500(1 –
0.90)(0.25)] = $9.36 = 9.4

11. In reference to problem no. 8, indicate the annual percentage increase or decrease in cost resulting
from the quality management program from 1998 to 1999.

a. -3.9% b. 4.5%
c. -5.2% d. 6.6%

Answer: a. -3.9%

1998 vs. 1999

% increase/ decrease = [(9.36 – 9.74)/ 9.74] x 100 = -3.90%

12. The total processing cost for producing the running shoe in Problem no. 8 is $18. The Alberto Shoe
Company starts production of 650 pairs of the shoes weekly, and the average weekly yield is 90
percent, with 10 percent defective shoes. One quarter of the defective shoes can be reworked at a
cost of $3.75. Compute the quality-productivity ratio (QPR).

a. 3.1 b. 4.1
c. 5.1 d. 6.1

Answer: c. 5.1

Solution:

QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x 100

QPR = {[650(0.90) + 650(0.10)(0.25)]/ [(650)(18)+650(0.10)(0.25)(3.75)]} x 100 = 5.11 = 5.1

13. In reference to problem no. 12, compute the QPR if the production rate is increased to 800 pairs of
shoes per week.

a. 3.1 b. 4.1
c. 5.1 d. 6.1

Answer: c. 5.1

QPR = {[800(0.90) + 800(0.10)(0.25)]/ [800(18)+800(0.10)(0.25)(3.75)]} x 100 = 5.11 = 5.1

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14. In reference to problem no. 12, compute the QPR if the processing cost is reduced to $16.50 and the
rework cost to $3.20.

a. 5.6 b. 6.5
c. 7.2 d. 8.3

Answer: a. 5.6

QPR = {[650(0.90) + 650(0.10)(0.25)]/ [650(16.50)+650(0.10)(0.25)(3.20)]} x 100 = 5.58 = 5.6

15. In reference to problem no. 12, compute the QPR if the product yield is increased to 93 percent good
quality.

a. 7.6 b. 5.7
c. 6.3 d. 5.2

Answer: d. 5.2

QPR = {[650(0.93) + 650(0.07)(0.25)]/ [650(18)+650(0.07)(0.25)(3.75)]} x 100 = 5.24

16. Bellphone, Inc. manufactures cellular telephones at processing cost of $47 per unit. The company
produces an average of 250 phones per week and has a yield of 87 percent good-quality phones,
resulting in 13 percent defective phones, all of which can be reworked. The cost of reworking a
defective telephone is $16. Compute the quality-productivity ratio (QPR).

a. 2.0 b. 3.0
c. 4.0 d. 5.0

Answer: a. 2.0

QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x 100

QPR = {[250(0.87) + 250(0.13)]/ [250(47)+250(0.13)(16)]} x 100 = 2.04 = 2.0

17. In reference to problem no. 16, compute the QPR if the company increased the production rate to 320
phones per week while reducing the processing cost to $42, reducing the rework cost to $12, and
increasing the product yield of good-quality telephones to 94 percent.

a. 2.3 b. 3.5
c. 4.1 d. 5.4

Answer: a. 2.3

Solution:

QPR = {[320(0.94) + 250(0.06)]/ [320(42)+320(0.06)(12)]} x 100 = 2.34 = 2.3

18. Burger Mondie is a fast-food restaurant that processes an average of 680 food orders each day. The
average cost of each order is $6.15. Four percent of the orders are incorrect and only 10 percent of
the defective orders can be corrected with additional food items at an average cost of $1.75. The
remaining defective orders have to be thrown out. Compute the average product cost.

a. 3.7 b. 4.8
c. 5.3 d. 6.4

Answer: d. 6.4

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Product cost = [(direct manufacturing cost per unit)(input) + (rework cost per unit)(reworked
units)]/ yield
Product cost = {[6.15 x 680] + [1.75(0.04)(680)(0.10)]}/ [680(0.96) + 680(0.04)(0.10)] = $6.39 =
6.4

19. In reference to problem no. 18 and in order to reduce the number of wrong orders, Burger Mondie is
going to invest in a computerized ordering and cash register system. The cost of the system will
increase the average order cost by $0.05 and will reduce defective orders to 1 percent. What is the
annual net cost effect of this quality-improvement initiative?

a. 30,390 b. 31,189
c. 32,266 d. 33,742

Answer: c. 32,266

Product cost = {[6.20 x 680] + [1.75(0.01)(680)(0.10)]}/ [680(0.99) + 680(0.01)(0.10)] = $6.26

Annual net cost effect/ savings = 6.39 – 6.26 = 0.13 x 680 orders per day x 365 days per year =
$32,266

20. In reference to problem no. 18, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.

a. 13.7 b. 15.7
c. 17.9 d. 19.9

Answer: b. 15.7

QPR = [good-quality units/ (input)(processing cost) + (defective units)(rework cost)] x

100
QPR = {[680(0.96) + 680(0.04)(0.10)]/ [680(6.15)+680(0.04)(0.10)(1.75)]} x 100 = 15.66 = 15.7

21. In reference to problem no. 19, compute the quality-productivity ratio (QPR) for the Burger Mondie
restaurant.

a. 14.0 b. 16.0
c. 18.0 d. 20.0

Answer: b. 16.0

QPR = {[680(0.99) + 680(0.01)(0.10)]/ [680(6.20)+680(0.01)(0.10)(1.75)]} x 100 = 15.98 = 16.0

22. A manufacturing company has a weekly product input of 1,700 units. The average percentage of
good-quality products is 83 percent. Of the poor-quality products, 60 percent can be reworked and
sold as good-quality products. Determine the weekly product yield.

a. 1,584.4 b. 1,678.2
c. 1,783.1 d. 1,821.3

Answer: a. 1,584.4

Y = (I)(%G) + (I)(1 – %G)(%R) = (1,700)(0.83) + (1,700)(0.17)(0.60) = 1,584.4 units

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23. A retail telephone catalog company takes catalog orders from customers and then sends the
complete orders to the warehouses to be filled. An operator processes an average of 45 orders per
day. The cost of processing an order is $1.15, and it costs $0.65 to correct an order that has been
filled out incorrectly by the operator. An operator averages 7 percent bad orders per day, all of which
are reworked prior to filling the customer order. Determine the quality-productivity ratio for an
operator.

a. 77.53 b. 79.34
c. 81.91 d. 83.65

Answer: d. 83.65

Good-Quality Units
QPR = -------------------------------------------------------------------------------------------- X 100
(Input)(Processing Cost) + (Defective Units)(Rework Cost)

45
QPR = --------------------------------------------------------------- X 100
(45)(1.15) + (3.15)(0.65)

QPR = 83.65

24. The Glorioso Jeans Company produces denim jeans. The company wants to establish a p-chart to
monitor the production process and maintain high quality. Glorioso believes that approximately 99.74
percent of the variability in the production process is random and thus should be within control limits,
whereas 0.26 percent of the process variability is not random and suggests that the process is out of
control. The company has taken 20 samples (one per day for 20 days), each containing 100 pairs of
jeans (n = 100), and inspected them for defects, the results of which are as follow.

Sample No. of Defectives Proportion Defective

1 6 0.06
2 0 0.00
3 4 0.04
4 10 0.10
5 6 0.06
6 4 0.04
7 12 0.12
8 10 0.10
9 8 0.08
10 10 0.10
11 12 0.12
12 10 0.10
13 14 0.14
14 8 0.08
15 6 0.06
16 16 0.16
17 12 0.12
18 14 0.14
19 20 0.20
20 18 0.18

Estimate the proportion defective for the total sample.

a. 0.10 b. 0.15
c. 0.20 d. 0.25

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Answer: a. 0.10

Total Defectives
p = ------------------------------------------------------
Total Sample Observations

200
p = ------------------------ = 0.10
20(100)

25. In reference to problem no. 24, compute the upper & lower control limits.

a. UCL = 0.230, LCL = 0.050 b. UCL = 0.120, LCL = 0.030

c. UCL = 0.170, LCL = 0.040 d. UCL = 0.190, LCL = 0.010

Answer: d. UCL = 0.190, LCL = 0.010

UCL = 0.10 + 3 sqrt((0.10(1 – 0.10))/100)) = 0.190

LCL = 0.10 - 3 sqrt((0.10(1 – 0.10))/100)) = 0.010

26. The Great North Woods Clothing Company sells specialty outdoor clothing through its catalog. A
quality problem that generates customer complaints occurs when a warehouse employee fills an
order with the wrong items. The company has decided to implement a process control plan by
inspecting the ordered items after they have been obtained from the warehouse and before they have
been packaged. The company has taken 30 samples (during a 30-day period), each for 100 orders,
and recorded the number of “defective” orders in each sample.

Sample Number of Sample Number of

Defectives Defectives
1 12 16 6
2 14 17 3
3 10 18 7
4 16 19 10
5 18 20 14
6 19 21 18
7 14 22 22
8 20 23 26
9 18 24 20
10 17 25 24
11 9 26 18
12 11 27 19
13 14 28 20
14 12 29 17
15 7 30 18

Estimate the proportion defective for the total sample.

a. 0.10 b. 0.15
c. 0.20 d. 0.25

Answer: b. 0.15

Total Defectives
p = ------------------------------------------------------
Total Sample Observations

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453
p = ------------------------ = 0.151
30(100)

27. In reference to problem no. 26, compute the upper & lower control limits.

a. UCL = 0.258, LCL = 0.044 b. UCL = 0.258, LCL = 0.064

c. UCL = 0.289, LCL = 0.064 d. UCL = 0.289, LCL = 0.044

Answer: a. UCL = 0.258, LCL = 0.044

UCL = 0.151 + 3 sqrt(((0.151)(1 – 0.151))/100) = 0.25841

LCL = 0.151 - 3 sqrt((0.151(1 – 0.151))/100)) = 0.04358

28. Twenty samples of n = 200 were taken by an operator at a workstation in a production process. The
number of defective items in each sample were recorded as follows:

Sample No. of Defectives p Sample No. of Defectives p

1 12 0.060 11 16 0.080
2 18 0.090 12 14 0.070
3 10 0.050 13 12 0.060
4 14 0.070 14 16 0.080
5 16 0.080 15 18 0.090
6 19 0.095 16 20 0.100
7 17 0.085 17 18 0.090
8 12 0.060 18 20 0.100
9 11 0.055 19 21 0.105
10 14 0.070 20 22 0.110

Management wants to develop a p-chart using 3 sigma limits. Estimate the proportion defective for the
total sample.

a. 0.06 b. 0.12
c. 0.16 d. 0.08

Answer: d. 0.08

Total Defectives
p = ------------------------------------------------------
Total Sample Observations

320
p = ------------------------ = 0.08
20(200)

29. In reference to problem no. 28, compute the upper & lower control limits.

a. UCL = 0.161, LCL = 0.014 b. UCL = 0.161, No LCL

c. UCL = 0.213, LCL = 0.014 d. UCL = 0.213, No LCL

Answer: a. UCL = 0.161, No LCL

UCL = 0.08 + 3 sqrt(((0.08)(1 – 0.08))/100) = 0.16139

LCL = 0.08 - 3 sqrt((0.08(1 – 0.08))/100)) = -0.00139 No LCL

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30. The Valle Hotel has 240 rooms. The hotel’s housekeeping is responsible for maintaining the quality of
the rooms’ appearance and cleanliness. Each individual housekeeper is responsible for an area
encompassing 20 rooms. Every room in use is thoroughly cleaned and its supplies, toiletries, and so
on are restocked each day. Any defects that the housekeeping staff notices that are not part of the
normal housekeeping service are supposed to be reported to hotel maintenance. Every room is
briefly inspected each day by a housekeeping supervisor. However, hotel management also conducts
inspection tours at random for a detailed, thorough inspection for quality control purposes. The
management inspectors not only check for normal housekeeping service defects like clean sheets,
dust, room supplies, room literature, or towels, but also for defects like an inoperative or missing TV
remote, poor TV picture quality or reception, defective lamps, a malfunctioning clock, tears or stains
in the bedcovers or curtains, or a malfunctioning curtain pull. An inspection sample includes twelve
rooms i.e. one room selected at random from each of the twelve 20-room blocks serviced by a
housekeeper. Following are the results from fifteen inspection samples conducted at random during a
one-month period:

Sample Number of Defects

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

The hotel believes that approximately 99 percent of the defects (corresponding to 3-sigma limits) are
caused by natural, random variations in the housekeeping and room maintenance service, with 1 percent
caused by nonrandom variability. They want to construct a c-chart to monitor the housekeeping service.
Compute for the sample defect estimate.

a. 10.87 b. 11.92
c. 12.67 d. 13.12

Answer: c. 12.67

Total Defectives
c = ------------------------------------------------------
Total Sample Observations

190
c = ------------------------ = 12.67
15

31. In reference to problem no. 30, compute the upper & lower control limits.

a. UCL = 24.34, LCL = 2.33 b. UCL = 23.35, LCL = 1.99

c. UCL = 25.65, LCL = 1.78 d. UCL = 26.13, LCL = 2.14

Answer: b. UCL = 23.35, LCL = 1.99

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UCL = 12.67 + 3 sqrt(12.67) = 23.35

LCL = 12.67 - 3 sqrt(12.67) = 1.99

32. The Great North Woods Clothing Company is a mail-order company that processes thousands of mail
and telephone orders each week. This is customer service number to handle customer order
problems, inquiries, and complaints. The company wants to monitor the number of customer calls that
can be classified as complaints. The total number of complaint calls the customer service department
has received for each of the last 30 weekdays are shown in the table. Construct a c-chart for this
process with 3-sigma control limits.

Day Complaint Day Complaint

Calls Calls
1 27 16 19
2 15 17 12
3 38 18 17
4 41 19 18
5 19 20 26
6 23 21 31
7 21 22 14
8 16 23 18
9 33 24 26
10 35 25 27
11 26 26 35
12 42 27 20
13 40 28 12
14 35 29 16
15 25 30 15

Compute for the sample defect estimate.

a. 20.87 b. 22.75
c. 24.73 d. 26.12

Answer: c. 24.73

Total Defectives
c = ------------------------------------------------------
Total Sample Observations

742
c = ------------------------ = 24.73
30

33. In reference to problem no. 32, compute the upper & lower control limits.

a. UCL = 39.65, LCL = 11.33 b. UCL = 37.63, LCL = 11.33

c. UCL = 39.65, LCL = 9.81 d. UCL = 37.63, LCL = 12.81

Answer: c. UCL = 39.65, LCL = 9.81

UCL = 24.73 + 3 sqrt(24.73) = 39.65

LCL = 24.73 - 3 sqrt(24.73) = 9.81

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34. The Salvedia Tool Company produces slip-ring bearings which look like flat doughtnuts or washers.
They fit around shafts or rods, such as drive shafts in machinery or motors. In the production process
for a particular slip-ring bearing the employees have taken 10 samples (during a 10-day period) of 5
slip-ring bearings i.e. n = 5. The individual observations from each sample are shown as follows.

Sample k 1 2 3 4 5
1 5.02 5.01 4.94 4.99 4.96
2 5.01 5.03 5.07 4.95 4.96
3 4.99 5.00 4.93 4.92 4.99
4 5.03 4.91 5.01 4.98 4.89
5 4.95 4.92 5.03 5.05 5.01
6 4.97 5.06 5.06 4.96 5.03
7 5.05 5.01 5.10 4.96 4.99
8 5.09 5.10 5.00 4.99 5.08
9 5.14 5.10 4.99 5.08 5.08
10 5.01 4.98 5.08 5.07 4.99

The company wants to develop an R-chart to monitor the process variability. Compute for the average
range for the sample.

a. 0.149 b. 0.137
c. 0.124 d. 0.115

Answer: d. 0.115

Sample k R
1 0.08
2 0.12
3 0.08
4 0.14
5 0.13
6 0.10
7 0.14
8 0.11
9 0.15
10 0.10
1.15

1.15
R = ----------------- = 0.115
10

35. In reference to problem no. 34, compute the upper & lower control limits.

a. UCL = 0.243, LCL = 0 b. UCL = 0.367, LCL = 0.101

c. UCL = 0.412, LCL = 0 d. UCL = 0.591, LCL = 0.115

Answer: a. UCL = 0.243, LCL = 0

D3 = 0 and D4 = 2.11 for n = 5

UCL = 2.11(0.115) = 0.243

LCL = 0(0.115) = 0

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36. In reference to problem no. 34, compute the overall process average.

a. 4.02 b. 5.01
c. 6.03 d. 7.02

Answer: b. 5.01

Sample k x
1 4.98
2 5.00
3 4.97
4 4.96
5 4.99
6 5.01
7 5.02
8 5.05
9 5.08
10 5.03
50.09

50.09
x = -------------------- = 5.01
10

37. In reference to problem no. 34, compute the upper & lower control limits for mean chart.

a. UCL = 5.08, LCL = 4.94 b. UCL = 6.05, LCL = 3.76

c. UCL = 7.13, LCL = 2.89 d. UCL = 08.34, LCL = 1.95

Answer: a. UCL = 5.08, LCL = 4.94

A2 = 0.58 for n = 5

UCL = 5.01 + (0.58)(0.115) = 5.08

LCL = 5.01 – (0.58)(0.115) = 4.94

38. A machine at the Pacific Fruit Company fills boxes with raisins. The labeled weight of the boxes is 10
ounces. The company wants to construct an R-chart to monitor the filling process and make sure the
box weights are in control. The quality control department sampled five boxes every two hours for
three consecutive working days. The sample observations are in the table. Construct an R-chart from
these data with 3-sigma control limits.

Box weights (oz)

Sample k 1 2 3 4 5
1 9.06 9.13 8.97 8.85 8.46
2 8.52 8.61 9.09 9.21 8.95
3 9.35 8.95 9.20 9.03 8.42
4 9.17 9.21 9.05 9.01 9.53
5 9.21 8.87 8.71 9.05 9.35
6 8.74 8.35 8.50 9.06 8.89
7 9.00 9.21 9.05 9.23 8.78
8 9.15 9.20 9.23 9.15 9.06
9 8.98 8.90 8.81 9.05 9.13
10 9.03 9.10 9.26 9.46 8.47
11 9.53 9.02 9.11 8.88 8.92
12 8.95 9.10 9.00 9.06 8.95

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Compute for the average range for the sample.

a. 0.445 b. 0.574
c. 0.624 d. 0.715

Answer: b. 0.574

Sample k R
1 0.67
2 0.69
3 0.93
4 0.52
5 0.64
6 0.71
7 0.45
8 0.17
9 0.32
10 0.99
11 0.65
12 0.15
6.89

6.89
R = ----------------- = 0.574
12

39. In reference to problem no. 38, compute the upper & lower control limits.

a. UCL = 1.243, LCL = 0 b. UCL = 1.317, LCL = 0.012

c. UCL = 1.212, LCL = 0 d. UCL = 1.321, LCL = 0.015

Answer: a. UCL = 1.212, LCL = 0

D3 = 0 and D4 = 2.11 for n = 5

UCL = 2.11(0.574) = 1.212

LCL = 0(0.574) = 0

40. In reference to problem no. 38, compute the overall process average.

a. 8.997 b. 9.012
c. 8.036 d. 9.024

Answer: a. 8.997

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Sample k x
1 8.894
2 8.876
3 8.990
4 9.194
5 9.038
6 8.708
7 9.054
8 9.158
9 8.974
10 9.064
11 9.092
12 9.012
107.964

107.964
x = -------------------- = 8.997
12

41. In reference to problem no. 38, compute the upper & lower control limits for mean chart.

a. UCL = 9.08, LCL = 8.66 b. UCL = 9.08, LCL = 8.89

c. UCL = 9.33, LCL = 8.89 d. UCL = 9.33, LCL = 8.66

Answer: d. UCL = 9.33, LCL = 8.66

A2 = 0.58 for n = 5

UCL = 8.997 + (0.58)(0.574) = 9.33

LCL = 8.997 – (0.58)(0.574) = 8.66

42. Management is trying to decide defective rate, should be inspected. If it is not inspected, the 3
percent defectives will go through a product assembly phase and have to be replaced later. If all Part
A’s are inspected, one-third of the defectives will be found, thus raising the quality to 2 percent
defectives.

If inspection is done and the cost of inspecting is $0.01 per unit and the cost of replacing a defective
in the final assembly is $4.00. What is cost savings?

a. $0.02 b. $0.03
c. $0.04 d. $0.05

Answer: b. $0.03

Solution:

Should Part A be inspected?

0.03 defective with no inspection.
0.02 defective with inspection.

This problem can be solved simply by looking at the opportunity for 1 percent improvement.
Benefit = 0.01($4.00) = $0.04
Cost of inspection = $0.01
Therefore, inspect and save $0.03 per unit.

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43. In reference to problem no. 42 and suppose the cost of inspecting is $0.05 per unit rather than $0.01.
Would you perform the inspection?

a. Yes b. No
c. Maybe d. No Answer

Answer: No

A cost of 0.05 per unit to inspect would be 0.01 greater than savings so inspection should not be
performed.

44. A company currently using an inspection in its material receiving department is trying to install an
overall cost reduction program. One possible reduction is the elimination of one of the inspection
positions. This position tests material that has a defective content on the average of 0.04. By
inspecting all items, the inspector is able to remove all defects. The inspector can inspect 50 units per
hour. Hourly rate including fringe benefits for this position is $9. If the inspection position is eliminate,
defects will go into product assembly and will have to be replaced later at a cost of $10 each when
they are detected in final product testing. Should this inspection position be not eliminated and how
much is the benefit (or loss) from the current inspection process?

a. Yes, Benefits of $5 b. Yes, Benefits of $11

c. No, Losses of $5 d. No, Losses of $11

Answer: b. Yes, Benefits of $11

Cost of inspection = $9/ hour

Replacement cost = 50 x 0.04 x $10 = $20/ hour

45. There is a 3 percent error rate at a specific point in a production process. If an inspector is placed at
this point, all the errors can be detected and eliminated. However, the inspector is paid $8 per hour
and can inspect units in the process at the rate of 30 per hour. If no inspector is used and defects are
allowed to pass this point, there is a cost of $10 per unit to correct the defect later on. Should an
inspector be hired?

a. Yes, Savings of $3 b. Yes, Savings of $1

c. No, Losses of $3 d. No, Loss of $1

Answer: b. Yes, Savings of $1

Cost of inspection = $8/ hour

Replacement cost = 30units/ hour x 0.03 x $10 per unit = $9

46. Suppose a room has two lamps, but to have adequate light both lamps must work (success) when
turned on. One lamp has a probability of working of 0.90 and the other has a probability of working of
0.80. What is the reliability of the system or the probability that both lamps will work?

a. 0.76 b. 0.74
c. 0.72 d. 0.70

Answer: c. 0.72

Solution:

0.90 0.80

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Rule 1: If two or more events are independent and success is defined as the probability that all of the
events occur, then the probability of success is equal to the product of the probabilities of the events.

P (both success) = 0.90 x 0.80 = 0.72

47. There are two lamps in a room. When turned on, one has a probability of working of 0.90 and the
other has a probability of working of 0.80. Only a single lamp is needed to light for success. If one
fails to light when turned on, the other lamp is turned on. Hence, one of the lamps is a backup in case
the other one fails. What is the reliability of the system or the probability of success that either lamp
will turn on?

a. 0.92 b. 0.94
c. 0.96 d. 0.98

Answer: d. 0.98

Solution:

0.80

0.90

Rule 2: If two events are independent and success is defined as the probability that at least one of the
events will occur, the probability of success is equal to the probability of either one plus 1.00 minus that
probability multiplied by the other probability.

P (Either lamp is a success) = 0.90 + (1 – 0.90) (0.80) = 0.98

48. Three lamps have probabilities of 0.90, 0.80, and 0.70 of lighting when turned on. Only one lighted
lamp is needed for success; hence, two of the lamps are considered to be backups. What is the
reliability of the system?

a. 0.992 b. 0.994
c. 0.996 d. 0.998

Answer: b. 0.994

Solution:

0.70

0.80

0.90

Rule 3: If two or more events are involved and success is defined as the probability that at least one of
them occurs, the probability of success is 1 – P (all fail).

P (Either lamp is a success) = 1 – [(1 - 0.90) x (1 – 0.80) x (1 - 0.70)] = 0.994

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49. Determine the reliability of the system shown below:

0.90 0.92

0.98 0.90 0.95

a. 0.962 b. 0.964
c. 0.966 d. 0.968

Answer: c. 0.966

The system can be reduced to a series of three components:

0.98 0.90 + 0.90 (1 – 0.90) 0.95 + 0.92 (1 – 0.95)

The system reliability is, then, the product of these:

0.98 x 0.99 x 0.996 = 0.966

50. A product design engineer must decide if a redundant component is cost-justified in a certain system.
The system in question has a critical component with a probability of 0.98 of operating. System failure
would involve a cost of $20,000. For a cost of $100, a switch could be added that would automatically
transfer the system to the backup component in the event of a failure. What is the cost savings if a
backup is added with probability of 0.98?

a. $292 b. $294
c. $296 d. $298

Answer: a. $292

Because no probability is given for the switch, we will assume its probability of operating when needed is
100 percent. The expected cost of failure (i.e. without the backup) is $20,000 x (1 – 0.98) = $400.

With the backup, the probability of not failing would be:

0.98 + 0.02(0.98) = 0.9996

Hence, the probability of failure would be 1 – 0.9996 = 0.0004. The expected cost of failure with the
backup would be the added cost of the backup component plus the failure cost:

$100 + $20,000(0.0004) = $108

Therefore the cost savings is $400 - $108 = $292

51. Due to the extreme cost of interrupting production, a firm has two standby machines available in case
a particular machine breaks down. The machine in use has a reliability of 0.94, and the backups have
reliabilities of 0.90 and 0.80. In the event of a failure, either back up can be pressed into service. If
one fails, the other back up can be used. Compute the system reliability.

a. 0.9992 b. 0.9994
c. 0.9996 d. 0.9988

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Answer: d. 0.9988

Solution:

0.80

0.90

0.94

P (Either lamp is a success) = 1 – [(1 - 0.80) x (1 – 0.90) x (1 - 0.94)] = 0.9988

52. A hospital has three independent fire alarm systems, with reliabilities of 0.95, 0.97, and 0.99. In the
event of a fire, what is the probability that a warning would be given?

a. 0.999983 b. 0.999985
c. 0.999987 d. 0.999989

Answer: b. 0.999985

A warning would not be given if all three alarms failed. The probability that at least one alarm would
operate or P(Warning) is 1 – P(None operate):

P(None operate) = (1 – 0.95)(1 – 0.97)(1 – 0.99) = 0.000015

P(Warning) = 1 – 0.000015 = 0.999985

53. By means of extensive testing, a manufacturing has determined that its washing machine models
have an expected life that is exponential with a mean of four years. Find the probability that one of these
machines will have a life that ends after the initial four years of service.

a. 0.23 b. 0.37
c. 0.47 d. 0.63

Answer: b. 0.37

Solution:

T = 4 years
MTBF = 4 years

T/MTBF = 4/4 = 1.0

-1.0
e^ = 0.3679

54. In reference to problem 53, find the probability that one these machines will have a life that ends
before four years of service are completed.

a. 0.77 b. 0.63
c. 0.53 d. 0.37

Answer: b. 0.63

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Solution:
-1
The probability of failure before T = 4 years is 1 – e^ , or 1 – 0.37 = 0.63

55. In reference to problem 53, find the probability that one these machines will have a life that ends not
before six years of service.

a. 0.22 b. 0.33
c. 0.67 d. 0.78

Answer: a. 0.22

T = 6 years

T/MTBF = 6/4 = 1.50

-1.5
e^ = 0.2231

56. The mean life of a certain fan belt can be modeled using a normal distribution with a mean of six
years and a standard deviation of one year. Determine the probability that a fan belt will wear out before
seven years of service.

a. 0.58 b. 0.61
c. 0.75 d. 0.84

Answer: d. 0.84

Solution:

Wear-out life mean = 6 years

Wear-out life standard deviation = 1 year
Wear-out life is normally distributed.

Compute for

7–6
z = ------------------
1

z = +1.0

Thus, P(T < 7) = 0.8413

57. In reference to problem 56, determine the probability that a fan belt will wear-out after seven years of
service.

a. 0.42 b. 0.39
c. 0.25 d. 0.16

Answer: d. 0.16

Subtract the probability determined in previous problem from 100 percent

1.00 – 0.8413 = 0.1587 = 0.16

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57. In reference to problem 56, determine the service life that will provide a wear-out probability of 10
percent.

a. 6.31 b. 5.19
c. 4.72 d. 3.64

Answer: c. 4.72

Use the normal table and find the value of z that corresponds to an area under the curve of 10 percent.

z (10%) = -1.28

T–6
1.28 = ------------
1

T = 4.72 years

58. A copier is able to operate for an average of 200 hours between repairs, and the mean repair time is
two hours. Determine the availability of the copier.

a. 0.61 b. 0.76
c. 0.87 d. 0.99

Answer: d. 0.99

MTBF = 200 hours

MTR = 2 hours

Availability = 200/(200 + 2) = 0.99

59. A weather satellite has an expected life of 10 years from the time it is placed into earth orbit,
Determine its probability of no wear-out before 20 years length of service. Assume the exponential
distribution is appropriate.

a. 0.08 b. 0.14
c. 0.21 d. 0.36

Answer: b. 0.14

T = 20 years

T/MTBF = 20/10 = 2.00

-2.0
e^ = 0.1353

60. In reference to problem 59, what is the probability that the satellite will fail between 5 and 12 years
after being placed into earth orbit?

a. 0.30 b. 0.35
c. 0.38 d. 0.42

Answer: a. 0.30

P(5 years < failure < 12 years) = P(failure after 5 years) – P(failure after 12 years)

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P(failure after 5 years) = 0.6065

T = 5 years

T/MTBF = 5/10 = 0.50

-0.5
e^ = 0.6065

P(failure after 12 years)

T = 12 years

T/MTBF = 12/10 = 1.20

-1.2
e^ = 0.3012

P(5 years < failure < 12 years) = 0.6065 – 0.3012 = 0.3053 = 0.30

61. One line of radial tires produced by a large company has a wear-out life that can be modeled using a
normal distribution with a mean of 25,000 kilometers and a standard deviation of 2,000 kilometers.
Determine the percentage of tires that can be expected to wear-out within +-2,000 kilometers of the
average (i.e. between 23,000 kilometers and 27,000 kilometers).

a. 0.51 b. 0.68
c. 0.74 d. 0.82

Answer: b. 0.68

Kilometers are analogous to time and are handled in exactly the same way and the term percentage
refers to a probability.

The phrase “within +-2,000 kilometers of the average” translates to within one standard deviation of the
mean since the standard deviation equals 2,000 kilometers. Therefore the range of z is z = -1.00 to z =
+1.00 and the area under the curve between those points is found as the difference between P(z < +1.00)
and P(z < -1.00).

P(z < +1.00) = 0.8413

P(z < -1.00) = 0.1587
P(-1.00 < z < +1.00) = 0.8413 – 0.1587 = 0.6826

62. In reference to problem 61, for what life would you expect 4 percent of the tires to have worn out?

a. 22,500 b. 22,100
c. 21,500 d. 21,200

Answer: c. 21,500
Use the normal table and find the value of z that corresponds to an area under the curve of 4 percent.

z (4%) = -1.75
T – 25,000
1.75 = -----------------
2,000

T = 21,500 kilometers

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63. A manager has the option of using any one of three machines for a job. The machines and their
standard deviations are listed below and their specifications are 10.00mm and 10.80mm. Determine the
capability of machine A.

Machine Standard Deviation (mm)

A 0.13
B 0.08
C 0.16

a. 0.39 b. 0.48
c. 0.78 d. 0.96

Answer: c. 0.78

Machine Standard Deviation (mm) Machine Capability

A 0.13 6(0.13) = 0.78
B 0.08 6(0.08) = 0.48
C 0.16 6(0.16) = 0.96

64. In reference to problem 63, compute the process capability ratio of machine B.

a. 0.83 b. 0.96
c. 1.03 d. 1.67

Answer: d. 1.67

Machine Standard Deviation (mm) Machine Capability Cp

A 0.13 0.78 0.80/0.78 = 1.03
B 0.08 0.48 0.80/0.48 = 1.67
C 0.16 0.96 0.80/0.96 = 0.83

65. In reference to problem 64, which machine or machines is/ are capable?

a. Machine A b. Machine B
c. Machine C d. Machines A & B

Answer: b. Machine B

Only machine B is capable because its Cp is not less than 1.33.

66. A process has a mean of 9.20 grams and a standard deviation of 0.30 gram. The lower specification
limit is 7.50 grams and the upper specification limit is 10.50 grams. Compute Cpk.

a. 1.89 b. 1.98
c. 1.44 d. 1.66

Answer: 1.44

Compute the ratio for the lower specification:

Process Mean – Lower Specification 9.20 – 7.50 1.70

Cpk = -------------------------------------------------------- = ------------------- = --------------- = 1.89
3 3(0.30) 0.90

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Compute the ratio for the upper specification:

Upper Specification – Process Mean 10.50 – 9.20 1.30

Cpk = -------------------------------------------------------- = -------------------- = --------------- = 1.44
3 3(0.30) 0.90

The smaller ratio of the two ratios is 1.44

67. Determine which among the following processes is/ are capable.

Process Mean Standard Deviation Lower Spec Upper Spec

1 7.5 0.10 7.0 8.0
2 4.6 0.12 4.3 4.9
3 6.0 0.14 5.5 6.7

a. Process 1 b. Process 2
b. Process 3 d. Processes 1 & 3

Answer: a. Process 1

Notice that the means of the first two processes are exactly in the center of their upper and lower specs.
Hence, the Cp is appropriate. However, the third process is not centered, so Cpk is appropriate.

Cp or Cpk => 1.33

8.0 – 7.0
Process 1 Cp = -------------- = 1.67 (capable)
6(0.10)

4.9 – 4.3
Process 2 Cp = -------------- = 0.83 (not capable)
6(0.12)

6.7 – 6.0
Process 3 Cpk = -------------- = 1.67
3(0.14)

6.0 – 5.5
Process 3 Cpk = -------------- = 1.19 lower (not capable)
3(0.14)

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REFERENCES

[1] Russel, R.S. and Taylor, B.W., III “Operations Management, Third Edition”, Prentice Hall, Inc.,
2000

[2] Stevenson, W.J., “Production/ Operations Management, Fifth Edition”. McGraw Hill Companies,
Inc., 1996

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