False

C

This plan does not meet the specification very well. At .005 defective, the probability of acceptance is not 95% but over 97. At 0.05 defective, the acceptance rate is not 5% but 28. $$\begin{array}{cccc}\begin{array}{c}\text{ Population }\\ \text{ percent }\\ \text{ defective }\end{array}& \begin{array}{c}\text{ Probability of }\\ \text{ acceptance }\end{array}& \text{ AOQ }& \\ 0.005& 0.97387& 0.004869& \text{ at AQL }\\ 0.01& 0.91056& 0.009106& \\ 0.02& 0.73577& 0.014715& \\ 0.03& 0.55528& 0.016658& \text{ maximum }\\ 0.04& 0.40048& 0.016019& \\ 0.05& 0.27943& 0.013972& \text{ at LTPD }\\ 0.06& 0.19000& 0.0114& \\ 0.08& 0.08271& 0.006617& \end{array}$$

Efficiency is expressed in terms of the results achieved (outputs) in comparison to the resource inputs. Measures of efficiency include the following:
∙ Time (e.g., average time to fill an opening, process a benefits claim)
∙ Volume (e.g., number of people interviewed to fill a job, number of requests processed per employee)
∙ Cost (e.g., cost per training hour or per test).
Cost:
∙ ratio of compensation expense to total operating expense
∙ benefit cost per employee covered
∙ ratio of benefits expense to total operating expense
∙ processing costs per benefit claim
∙ administration costs per benefit claim
∙ cost per training day
∙ cost per trainee per program
Volume:
∙ number of training days
∙ number of interviews per selection
∙ ratio of filled positions to authorized positions
∙ percentage of employees with formal performance evaluations
∙ percentage of designated employees
Response Time:
∙ time between requisition and filling of position
∙ time to process benefits
∙ time from identifying a training need to program implementation
∙ time to respond to requests by category

1. Incomplete or inaccurate drawings or specifications
2. Late or non-conforming units
3. Unknown customer demands

B