- FIRST EXAM SPRING 2020 1. Describe how the view of operations as a process can be applied to the following: a. Acquisition of another company b. Marketing Research for a New Product c. Design of an Information System 2. An operations manager was heard complaining “My boss never listens to me ----- all the boss wants from me is to avoid making waves. I rarely get any capital to improve operations. Also, we do not have weekly, biweekly or even monthly meetings with our product managers, supply chain department, customer service or the sales department. We only meet with the accounting and finance departments when there are issues with the monthly budgets. Furthermore, our department has interacted with information service department about four times in past fiscal year” Please assess the following: a. Whether this business has a business strategy ? b. Does it have an operations strategy? c. What would you recommend? 3. Firm A has recorded the following costs in 2018: Incoming materials and inspection $20,000 Training of Personnel $40,000 Warranty $45,000 Process Planning $15,000 Scrap $13,000 Quality Laboratory $30,000 Rework $25,000 Allowances $10,000 Complaints $14,000 a. What are the Prevention, Appraisal, Internal Failure and External Failure costs? b. What inferences can you draw on Quality Measures taken by Firm A? c. What would you recommend to improve quality programs in Firm A? d. What initiatives should Firm A implement for 2019 and 2020? 4. Please explain the House of Quality (QFD) as discussed in class. 5. A certain process is under statistical control and has a mean value of 130 and a standard deviation of 8. The specifications for the process are: a. USL (upper specification limit) = 150 b. LSL(lower specification limit) =100 a. Calculate the cp and cpk b. Which of these indices is a better measure of process capability and why? c. Assuminng a normal distribution what percentage of output is expected to fall ourside the specification. Why is it important to know this? d. What would you recommend? 2 Chapter 7 Government Ethics and the Law William A. Myers, Ph.D. Learning Objectives (1 of 2) • Describe some of the reasons why there has been a loss of trust in government. • Explain the purpose of various government committees on ethics. • Discuss how public policy protects the rights of citizens. Learning Objectives (2 of 2) • Describe federal laws designed to protect each individual’s rights. • Explain the concept of political malpractice. • Understand the importance of ethics in public service. Let every American, every lover of liberty, every well wisher to his posterity, swear by the blood of the Revolution, never to violate in the least particular, the laws of the country; and never to tolerate their violation by others. —Abraham Lincoln Executive Branch: U.S. Office of Government Ethics • Exercises leadership .

1. - FIRST EXAM SPRING 2020
1. Describe how the view of operations as a process can be
applied to the following:
a. Acquisition of another company
b. Marketing Research for a New Product
c. Design of an Information System
2. An operations manager was heard complaining
“My boss never listens to me ----- all the boss wants from me is
to avoid making waves. I rarely get any capital to improve
operations. Also, we do not have weekly, biweekly or even
monthly meetings with our product managers, supply chain
department, customer service or the sales department. We only
meet with the accounting and finance departments when there
are issues with the monthly budgets. Furthermore, our
department has interacted with information service department
about four times in past fiscal year”
Please assess the following:
a. Whether this business has a business strategy ?
b. Does it have an operations strategy?
c. What would you recommend?
3. Firm A has recorded the following costs in 2018:
Incoming materials and inspection $20,000
Training of Personnel $40,000
Warranty $45,000

2. Process Planning $15,000
Scrap $13,000
Quality Laboratory $30,000
Rework $25,000
Allowances $10,000
Complaints $14,000
a. What are the Prevention, Appraisal, Internal Failure and
External Failure costs?
b. What inferences can you draw on Quality Measures taken by
Firm A?
c. What would you recommend to improve quality programs in
Firm A?
d. What initiatives should Firm A implement for 2019 and
2020?
4. Please explain the House of Quality (QFD) as discussed in
class.
5. A certain process is under statistical control and has a mean
value of 130 and a standard deviation of 8. The specifications
for the process are:
a. USL (upper specification limit) = 150
b. LSL(lower specification limit) =100
a. Calculate the cp and cpk

3. b. Which of these indices is a better measure of process
capability and why?
c. Assuminng a normal distribution what percentage of output is
expected to fall ourside the specification. Why is it important
to know this?
d. What would you recommend?
2
Chapter 7
Government Ethics
and the Law
William A. Myers, Ph.D.
Learning Objectives (1 of 2)
• Describe some of the reasons why there has
been a loss of trust in government.
• Explain the purpose of various government
committees on ethics.
• Discuss how public policy protects the rights of
citizens.

4. Learning Objectives (2 of 2)
• Describe federal laws designed to protect each
individual’s rights.
• Explain the concept of political malpractice.
• Understand the importance of ethics in public
service.
Let every American, every lover of liberty, every
well wisher to his posterity, swear by the blood
of the Revolution, never to violate in the least
particular, the laws of the country; and never to
tolerate their violation by others.
—Abraham Lincoln
Executive Branch:
U.S. Office of Government Ethics
• Exercises leadership in the executive branch to
prevent conflicts of interest.

5. • Resolves those conflicts of interest.
• Fosters high ethical standards for employees.
• Strengthens public confidence in government
business.
House of Representatives:
Committee on Ethics
• Designated the “supervising ethics office” for the
House of Representatives.
• Only standing committee of the House of
Representatives with membership divided
evenly by party.
Committee on Ethics:
Common Ethical Issues (1 of 2)
• Gifts from outside sources
• Gifts between employees
• Conflicting financial interests

6. • Remedies for financial conflicts of interest
• Impartiality in performing official duties
• Seeking other employment
Committee on Ethics:
Common Ethical Issues (2 of 2)
• Misuse of position
– Outside activities
– Post-employment
– Representation to government agencies and
courts
– Supplementation of salary
– Financial disclosure
Senate: Select Committee on Ethics
• Authorized to receive and investigate
– Allegations of improper conduct that may reflect upon
the Senate

7. – Violations of law
– Violations of the Senate code of official conduct
– Violations of rules and regulations of the Senate
– Recommend disciplinary action
– Recommend additional Senate rules or regulations to
ensure proper standards of conduct
– Report violations of law to federal and state
authorities.
Office of Congressional Ethics
• Independent, nonpartisan office
• Governed by a board composed of private
citizens
• Provides more public review and insight into the
ethical conduct of members of the House of
Representatives
• Mission is to assist the House in upholding high
standards of ethical conduct for its members,

8. officers, and staff.
U.S. Judicial Code of Conduct
• Provides guidance for judges on issues of
– Judicial integrity and independence
– Judicial diligence and impartiality
– Permissible extrajudicial activities
– Avoidance of impropriety or even its
appearance
Public Policy: A Principle of Law
Principle of law that holds no one can lawfully do
that which tends to be injurious to public.
Sources of Public Policy
• Legislation
• Administrative rules, regulations, or decisions
• Judicial decisions

9. • Professional code of ethics may contain an
expression of public policy
Sources of Public Policy:
Veterans Administration
• House Committee on Veterans’ Affairs
– Reviews veteran programs
– Examines current laws
– Reports bills and amendments to strengthen
existing laws concerning veterans and the
Department of Veterans Affairs (VA):
• Health care and disability compensation
• Headlines suggest failure in providing
health care
Laws Influence Ethical Principles:
Protecting Individual Rights (1 of 2)
• 1868: Fourteenth Amendment to U.S.

10. Constitution
• 1964: Title VI, Civil Rights Act of 1964
• 1890: Sherman Antitrust Act
• 1974: Privacy Act
• 1996: Health Insurance Portability and
Accountability Act
• 1986: Emergency Medical Treatment and Active
Labor Act
Laws Influence Ethical Principles:
Protecting Individual Rights (2 of 2)
• 1986: Health Care Quality Improvement Act
• 1989: Agency for Healthcare Research and
Quality
• 1989: Ethics in Patient Referral Act
• 1990: Patient Self-Determination Act
• 2002: Sarbanes-Oxley Act
• 2010: Patient Protection and Affordable Care Act

11. Fourteenth Amendment
to U.S. Constitution
States
– Cannot deny any person equal protection of
law.
– Shall not make or enforce any law which shall
abridge privileges or immunities of citizens.
– Shall not deprive any person of life, liberty, or
property, without due process of law.
– Shall not deny any person equal protection of
laws.
Title VI: Civil Rights Act of 1964
• Racial discrimination prohibited.
• HHS program discrimination prohibited.
Sherman Antitrust Act

12. • Contracts in restraint of trade illegal
• Areas of concern for health care
– Reduced market competition
– Price-fixing
– Preferred-provider arrangements
– Exclusive contracts
Privacy Act of 1974
• Safeguards individual privacy
• Provides individuals access to records
• Established Privacy Protection Safety
Commission
Health Insurance Portability
and Accountability Act
• Designed to protect the privacy, confidentiality,
and security of patient information.
• Standards are applicable to all health

13. information in all of its formats:
– Electronic
– Paper
– Verbal
Emergency Medical Treatment
and Active Labor Act
• Hospital emergency departments are
– Required to provide an appropriate medical-
screening exam.
– Forbidden to “dump” patients from one
emergency department to another.
Case: EMTALA Violated (1 of 2)
In Burditt v. U.S. Department of Health & Human
Services, EMTALA was violated by a physician
when he ordered a woman with dangerously high
blood pressure (210/130 mm Hg) and in active

14. labor with ruptured membranes transferred from
the emergency department of one hospital to
another hospital 170 miles away.
Case: EMTALA Violated (2 of 2)
• What are the main issues in Burditt?
• What ethical theories, principles, and values are
of concern? Describe them.
Health Care Quality Improvement Act
• Restricts ability of incompetent physicians to
move from state to state without disclosure of
incompetence.
• Provides professional review bodies limited
immunity from damages.
• Facilitates exchange of information among
professionals conducting peer review.
• Protects physicians improperly subjected to
disciplinary action.
Agency for Healthcare

15. Research and Quality
• Improve quality of health care
• Reduce healthcare costs
• Broaden access to essential healthcare
services
Ethics in Patient Referral Act
• Prohibits physicians who have ownership
interest or compensation arrangements with
clinical lab from referring Medicare patients to
that lab.
• Requires Medicare providers to report names
and provider numbers of all physicians or their
immediate relatives with ownership interests in a
provider entity.
Patient Self-Determination Act
• Right to be informed of rights.

16. • Right to execute advance directives.
• Right to accept or refuse medical care.
• States required to provide description of state
laws regarding advance directives to providers.
• Providers ensure written policies and
procedures regarding advance directives are
established.
Sarbanes-Oxley Act
The Sarbanes-Oxley Act was signed into law by
President Bush on July 30, 2002, in response to
the Enron debacle and high-profile cases of
corporate mismanagement.
Sarbanes-Oxley Act:
Promoting Due Diligence
• Act is not about regulation; it is about self-
regulation.

17. • Selecting a leader with morals and core values.
• Examining incentives.
• Monitoring the organization’s culture.
• Building a strong, knowledgeable governing
body.
• Searching for conflicts of interest.
• Focusing attention on the right things.
• Having the courage to speak out.
Sarbanes-Oxley Act:
Know Your Moral Values
• Be willing to stand up for them.
• Be prepared to pay the cost.
Sarbanes-Oxley Act: The “System”
Do not think lightly of evil, saying, “It will not come
to me.” By the constant fall of water drops in a
pitcher, a pitcher is filled, accumulating evil little by
little, becomes full of evil.

18. — Buddha, Dhammapada, verse 121
Patient Protection Affordable Care Act
• A federal statute that contains a set of
healthcare reforms passed by Congress and
signed into law by President Barack Obama on
March 23, 2010.
Hope remains that ethics will become something of
value that is practiced both in the workplace and in
one’s personal life. It is more meaningful than a
word to discuss, a book to read or a course of
study.
Ethics in Practice
Political Malpractice
• Political malpractice is the negligent or unethical
conduct on part of an elected official.

19. 1. Duty to care
2. Breach of duty
3. Injury
4. Causation
• Foreseeability
– Nonaction seems to be harming the nation
(e.g., Veterans care)
Review Questions
1. Discuss how the various branches of
government address ethical issues.
2. Discuss how public policy protects individual
rights (e.g., privacy and self-determination).
3. Discuss the legal and ethical implications of the
public policy acts presented here.
4. Describe how the concept of “political
malpractice” is similar to “medical malpractice”

20. as discussed in this chapter.
5. Should the role of an ethics committee be
expanded from one of consultation to that of a
decision-maker? Support your position. Here
there is no right or wrong answer, but a better
answer.
Review Questions