Ken Is a Production Operator Who Plots a Sample of the Product

question 79

Multiple Choice

Ken is a production operator who plots a sample of the product output and finds that it is outside the upper or lower specification limits on the control chart.What should he do?

• A) Continue with production and analyze why the problem might be occurring
• B) Do nothing; wait to see if the next sample is within the control limits
• C) Tell co-workers "the sky is falling"!
• D) Correct the problem (e.g.,people,equipment,materials,or work methods)
• E) Shut down the machine and have a manager investigate the problem

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Definitions:

Price

The amount of money required to purchase a product or service, set by the interaction of supply and demand.

Perfectly Elastic

A market situation where a small change in price leads to an infinite change in the quantity demanded or supplied.

Supply Curve

A graph depicting the relationship between the price of a good and the quantity of the good that suppliers are willing and able to sell, typically upward sloping.

Price Elasticity

A measure indicating the degree to which product demand is affected by price shifts.