Problem 1: Explain how 6-Sigma differs from traditional quality control.

Problem2: Can a product achieve a quality of design but not a quality of conformance?

Problem 3

A teller at a drive-up window at a bank had the following service times (in minutes) for 20 randomly selected customers:

1. Determine the upper control limit (UCL) of the mean chart.
2. Determine the upper control limit (UCL) of the range chart.

Problem 4

A town's department of public works is concerned about adverse public reaction to a sewer project that is currently in progress. Because of this, the Commissioner of Public Works has authorized a weekly survey to be conducted of town residents. Each week, a sample of 100 residents is questioned on their feelings towards the project. The results to date are shown below. Analyze this data using a P-chart with a 5% risk of Type I error (Z=3). Is the community sentiment stable?

a) Determine the upper control limit (UCL) of P-chart.

b) Determine the lower control limit (UCL) of P-chart.

c) Is the community sentiment stable?

Problem 5

An appliance manufacturer wants to contract with a repair shop to handle the authorized repair in Grand Forks. The company has set an acceptable range of repair time of 50 minutes to 90 minutes. Two firms have submitted bids for the work. In test trials, one firm had a mean repair time of 74 minutes with a standard deviation of 4.0 minutes, and the other firm had a mean repair time of 72 minutes with a standard deviation of 5.1 minutes.

a)Which firm would you choose?

b) Why?

1. A researcher desires to know whether the typing speed of a secretary (in words per minute) is related to the time (in hours) that it takes the secretary to learn to use a new word processing program. The data are shown below. Speed 48 74 52 79 83 56 85 63 88 74 90 92 Time 7 4 8 3.5 2 6 2.3 5 2.1 4.5 1.9 1.5 First, make a scatter plot of the data. Next, find the correlation coefficient. Lastly, run a hypothesis test to determine if there is a linear relationship between speed and time at the 95% level of confidence.

2. For Problem 1, find the equation of the linear regression line and predict the time for a speed of 72 words per minute.

3. For Problem 1, find the 95% prediction interval for time when the speed is 72 words per minute.

The information below relates to ABC Company for the year ended 30 June 2020.

Sales revenue 352,000
Accrued wages 15,000
Bank balance 1 July 2019 ($22,000)
Cash paid to suppliers 192,200
Cash receipts from customers 294,000
Payments to employees and for expenses 25,000
Bank loan received 6,600
Property taxes paid 20,000
Depreciation of equipment 45,600
Interest received 20,500
Cash received from sale of share market investments 55,000
Cash paid to purchase computer hardware 40,000
Issued shares in exchange for block of land 100,000
Dividends paid 29,000
Interest paid 30,000
Net profit after tax 76,000

Required:
a) Prepare ABC Statement of Cash Flows for the year ended 30 June 2020.

b) What is the most important section in ABC's Statement of Cash Flow? Explain.

Splish Brothers Trading uses a perpetual inventory system and the earnings approach to recognize revenue. The company offers credit terms to select customer. The following are transactions of Splish Brothers Trading with some of its customers.

Prepare the journal entries to record the above transactions. Ignore any inventory or cost of goods sold entries for the purposes of this question.

Milford Company has the following sales projection (in units) for the next six months:
Feb: 2100
Mar: 2300
Apr: 1900
May: 2600
Jun: 2200
Jul: 1700

Each unit sells for $37 through April and $42 starting in May.

Milford has prepared the following sales budget for the quarter of April, May and June:

All of the sales are on credit. Cautious collects from customers as follows:
50% of sales in the month of sale
30% in the month following the sale, and
20% in the second month following the sale

Prepare a cash receipts budget for the quarter of April, May and June.

What is budgeted cash receipts May?

4. Overhead Door (OD) Corporation’s founder, C. G. Johnson, invented the upward-lifting garage door in 1921 and the electric garage door opener in 1926. Since then OD has been a leading supplier of commercial, industrial, and residential garage doors sold through a nationwide network of more than 450 authorized distributors. They have built a solid reputation as a premier door supplier, commanding 15 % share of the market.

Suppose that customers assess door quality first in terms of the ease of operation, followed by its durability. The quality improvement team (QIT) might then assign an engineering team to determine the factors that contribute to these two main problems.

Smooth operation of a garage door is a critical quality characteristic that affects both problems: If a door is too heavy, it’s difficult and unsafe to balance and operate; if it’s too light, it tends to buckle and break down frequently or may not close properly.

Suppose the design engineers determine that a standard garage door should weigh a minimum of 74 kg. and a maximum of 86 kg., which thus specifies its design quality specification. QIT is inspecting if there is evidence that the percentage of defective doors does not exceed 7%. Suppose the QIT decides to collect data on the actual weights of 60 standard garage doors sampled randomly from their monthly production of almost 2,000 doors. See the tables on the next page.

4.1 (2 point) What is the sample defective rate ?

4.2 (2 points) Formulate and test an appropriate set of hypotheses to determine if the machine can be qualified. Use α = 0.05. Find the P-value.

4.3 (2 points) What is the 95% confidence interval?

4.4 (2 points) What is the 99% confidence interval?

Table 2:

The WIX Company Civil Engineers consists of two divisions. The divisions are Water (WA) and Infrastructure (IF). The company sells engineering services to various customers.

The following are the bill rates for the various staff classifications:
Vice President $280/hour
Senior Engineer $220/hour
Associate Engineer $200/hour
Staff Engineer $160/hour

The two divisions expect to bill the following hours:
• Water- 12,000 hours, vice president at 15% of the time, 20% of Senior Engineer time 10% to Associate engineers and remaining to Staff Engineers.
• Infrastructure- 4,000 hours, vice president at 12% of the time, 20% of Senior Engineer time, 5% to Associate engineers and remaining to Staff Engineers.

The Direct Labor costs per hours are as follows:
Vice President $99/hour
Senior Engineer $77/hour
Associate Engineer $62/hour
Staff Engineer $53/hour

The utilization (billable ratio to total hours) for each staff members are as follows:
Vice President 65%
Senior Engineer 80%
Associate Engineer 85%
Staff Engineer 92%.

The company has the following other costs:
Admin Salaries $181,000
Software $20,000
CEO Salary $150,000
Rent $125,000
Utilities $16,000
Benefits $75,000

Assume that there are 2080 hours per year that each engineer can work including vacation and other benefit hours.

You are an outside consulting firm and the company Board and the CFO have engaged you. The goal of the Board and the CFO is to improve profitability of the divisions and company. Therefore, to accomplish that the following questions should be answered during the presentation and the write up.

(1). Develop a staffing plan (FTE- Full time equivalent) based on the expected hours to be billed. This means, how many of (Full Time Equivalents) the various staff types should be there to accomplish the set goals and billable hours.

(2). Develop an Income Statement budget for the company and the two divisions. All overhead costs can be allocated using percentage of revenues.

(3). What can the company do to allocate costs differently to the divisions? Prepare a revised Income statement by division.

(4). Calculate the breakeven revenue.

(5). Make recommendations to improve profitability.

(6). If the company wants to make a profit of $3M how much revenue would it need? (Assuming all costs stay the same including labor)

I need all answers to this question, especially #6. Please help, thank you so much. I just do not understand.

The WIX Company Civil Engineers consists of two divisions. The divisions are Water (WA) and Infrastructure (IF). The company sells engineering services to various customers.

The following are the bill rates for the various staff classifications:
Vice President $280/hour
Senior Engineer $220/hour
Associate Engineer $200/hour
Staff Engineer $160/hour

The two divisions expect to bill the following hours:
• Water- 12,000 hours, vice president at 15% of the time, 20% of Senior Engineer time 10% to Associate engineers and remaining to Staff Engineers.
• Infrastructure- 4,000 hours, vice president at 12% of the time, 20% of Senior Engineer time, 5% to Associate engineers and remaining to Staff Engineers.

The Direct Labor costs per hours are as follows:
Vice President $99/hour
Senior Engineer $77/hour
Associate Engineer $62/hour
Staff Engineer $53/hour

The utilization (billable ratio to total hours) for each staff members are as follows:
Vice President 65%
Senior Engineer 80%
Associate Engineer 85%
Staff Engineer 92%.

The company has the following other costs:
Admin Salaries $181,000
Software $20,000
CEO Salary $150,000
Rent $125,000
Utilities $16,000
Benefits $75,000

Assume that there are 2080 hours per year that each engineer can work including vacation and other benefit hours.

You are an outside consulting firm and the company Board and the CFO have engaged you. The goal of the Board and the CFO is to improve profitability of the divisions and company. Therefore, to accomplish that the following questions should be answered during the presentation and the write up.

(1). Develop a staffing plan (FTE- Full time equivalent) based on the expected hours to be billed. This means, how many of (Full Time Equivalents) the various staff types should be there to accomplish the set goals and billable hours.

(2). Develop an Income Statement budget for the company and the two divisions. All overhead costs can be allocated using percentage of revenues.

(3). What can the company do to allocate costs differently to the divisions? Prepare a revised Income statement by division.

(4). Calculate the breakeven revenue.

(5). Make recommendations to improve profitability.

(6). If the company wants to make a profit of $3M how much revenue would it need? (Assuming all costs stay the same including labor)

I need all answers to this question, especially #6. Please help, thank you so much. I just do not understand.

1. In class, relevant to gerrymandering, I talked about the game of Divide and Choose. There’s a pile of goodies. Little Annie divides the big pile into two piles. Then Little Bobby chooses which of the two piles he wants, and Annie gets the other. The advantage of the method is that both children can see to it that they don’t envy what the other child gets. Annie can divide the big pile into two piles of equal value to her, and Bobby can choose the one he likes better, and neither can complain.

If the cake is worth 100 total to both, and the icing is worth 0 to Annie and 50 to Bobby, then Annie can do this:

Pile 1: all the icing, and 26% of the cake      Value to Annie 26. <----------

Value to Bobbie 76

Pile 2: no icing,and 74% of the cake             Value to Annie 74

Value to Bobbie 74. <------------ (this arrow is supposed to be connected to the above arrow)

Bobby will choose pile 1 because 76 is better than 74 (arrows). Bobby will get 76, and she’ll get pile 2 and get 74. (They’ll get the outcomes I put in bold.)

What would each get if Annie put half the icing and half the cake in each pile? Is that outcome Pareto efficient?

2. I’ll talk more about voting soon, but here’s something you can answer now. Let’s assume that there are exactly four candidates B, C, R and T in a primary election, and there are exactly four citizens voting on them. The citizens rank the four candidates starting from their favorite on the left to their least favorite on the right. So Citizen 1 prefers T to R to C to B.

Citizen 1.   T, R, C, B            

Citizen 2.   B, T, C, R

Citizen 3.   B, T, R, C

Citizen 4.   C, T, R, B

Which candidates are Pareto efficient for these four citizens? If a candidate is not Pareto efficient say why. (Hint: as usual, to decide whether a candidate is PE, look for another candidate that everyone prefers (“everyone”!).)