LSS Socrative Quizes Flashcards
This theory is centered on the idea that any process variation can be reduced using data collection, statistical tools, and sustained process monitoring.
A) Six Sigma
B) Lean
C) Process Mapping
D) Pareto Charting
A) Six Sigma
Note: Six Sigma is centered on the idea that any process variation can be reduced using data collection,
statistical tools, and sustained process monitoring The ultimate goal is to correct a process so it is near
perfect, generally allowing no more than 3.4 defects per million opportunities.
What is a problem-solving methodology that focuses on the weakest link in a chain of processes?
A) Process Mapping Methodology
B) Six Sigma Methodology
C) Lean Methodology
D) Theory of Constraints
D) Theory of Constraints
Note: The Theory of Constraints (TOC) is problem-solving methodology that focuses on the weakest link in a
chain of processes. The goal of TOC is to increase profits by identifying constraints that exist in any component of the process. At least one constraint exists in a process that holds back an organization from maximizing profits. This constraint must be addressed.
This is a collection of interacting forces that implement processes and coordinate resources and supporting services to help processes succeed and improve?
A) Process
B) Organization
C) Business System
D) Flow
C) Business System
Note: Business systems are a collection of interacting forces that implement processes and coordinate resources and supporting services to help processes succeed and improve. Business systems are managed from a broader perspective in an organization (executives or directors).
These individuals own the vision for the business, they provide sponsorship and set expectations for the results from Six Sigma?
A) Champions
B) Executive Leadership
C) Process Owners
D) Master Black Belts
B) Executive Leadership
Note: The Executive Leadership owns the vision for the business, they provide sponsorship and set expectations for the results from Six Sigma. They enable the organization to apply Six Sigma then monitor the progress against expectations. They:
- Make decisions to implement the Six Sigma initiative and develops accountability methods;
- Set meaningful goals and objectives for the corporation;
- Set performance expectations for the corporation;
- Ensures continuous improvement in the process; and
- Eliminates barriers and recognizes achievement
This quality theorist is known as the Father of Total Quality Management?
A) Dr. Walter Shewhart
B) Joseph Juran
C) W. Edwards Deming
D) Dr. Kaoru Ishikawa
C) W. Edwards Deming
Note: W. Edwards Deming is known as the Father of Total Quality Management (TQM). Continuous improvement
is a business strategy that is developed at the organizational level for projects to adopt and use. It may
also be implemented by an organization PMO. Continuous improvement has been used in business for nearly three-quarters of a century W. Edwards
Deming was an early leader in the field of process improvement, beginning with his work in post-World War II Japan. He taught four concepts that have been the foundation of the continuous process
Improvement movement:
- Better design of products to improve service
- Higher level of uniform product quality
- Improvement of product testing in the workplace and in research centers
- Greater sales through global markets
Deming’s philosophy was about improving quality to reduce expenses, increase productivity, and thus
increase market share. His views on quality control and quality management increased worldwide demand for Japanese products and soon gained popularity in the United States and worldwide.
A balanced scorecard is a management system that provides feedback on both inter nal business processes and exte rnal outcomes to continuously improve strategic pe rfo mance and results. Which of these perspectives is not one of the Balanced Scorecard met ics?
A) Financial Perspective
B) Competitor Perspective
C) Customer Perspective
D) Inte nal Processes Perspective
E) Employee Lea rning and Growth Perspective
C) Competitor Perspective
Note: Balanced scorecards allow an organization to measure and analyze pe fo mance against c itical success factors (both financial and non-financial). Way to link sho t-te rm actions with long-te rm goals.
Financial measures give owners, shareholders , and stakeholders a view
of the value and expenses, while non-financial can give stakeholders a
perspective on customer value, operational pe fo mance, and quality.
Financial Perspective – Addresses the financial objectives that must be accomplished. Examples of met ics: invento y levels, activity-based costing, cost of poor quality, and overall project savings Customer Perspective – Looks at the customer objectives that must be met. Examples: on-time deliver y, customer satisfaction, and product quality.
Inte nal Process Perspective – Addresses the Six Sigma project by examining the processes that require modification or improvement to achieve the customer objectives. Examples: cycle time, number of hours of rework, supplier quality, number of defects, and volume shipped.
Employee Lea ning and Growth Perspective – Looks at how team members must lea n and innovate to achieve the project’s goal. Examples: quality of training, total number of individuals trained, utilization of tools, effectiveness of meetings, and project schedule vs actual dates.
What is a comparison of actual or planned products, processes, and practices to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measur ing pe rfo rmance?
A) Strategic Objective
B) System Analysis
C) Operational Objective
D) Benchmark
D) Benchmark
Note: Benchmarking is the compa ison of actual or planned products, processes, and practices to those of comparable organizations to identify best practices, generate ideas for improvement, and provide a basis for measu ing pe fo mance. Benchmarking may come from va ious sources, including publications, professional meetings, university research, customer feedback, site visits, and analysis of competitors’ products.
Business value is the net quantifiable benefit der ived from a business endeavor that maybe tangible, intangible, or both.
A) True
B) False
A) True
Note: Business Value is the net quantifiable benefit de rived from a business endeavor, the benefit of which may be tangible, intangible, or both. Components of business value include:
- Shareholder value - in a publicly traded company, the pa rt of capitalization that is equity as opposed to debt; for example, the number of outstanding shares multiplied by the cu rent share p ice.
- Customer value - the value received by the customer of a product or se vice.
- Employee knowledge - an asset of the business, a frequently overlooked component of business value.
- Channel pa tner value - the value of a business’ pa tners.
What is the financial metr ic of profitability that measures the gain or loss from an investment relative to the amount of money invested?
A) Net Present Value NPV
B) Inte nal Rate of Retu n IRR
C) Retu rn on Investment ROI
D) Present Value PV
C) Retur n on Investment (ROI )
Note: Retur n of investment (ROI): ROI is most common and popular technique to used for measur ing the amount of retu rn on an investment. To calculate the ROI, the Net profit is divided by cost of investment. The result is come in % and ratio. It is a ratio of net profit and costs of investment. It is a ver y simple financial mat ix to evaluate the efficiency of an investment.
It is sometimes called the rate of retu n” and is usually expressed as a percentage. A positive ROI is interpreted as a good investment, and a negative ROI indicates a bad investment.
ROI is used for personal financial decision, compare company profitability, and compare the efficiency of different investment
Limitation of ROI Finding a satisfactory definition of profit and investment is difficult to find because it does not factor in the Time-Value of Money.
Fo rmula for ROI ROI%= Net profit /Costs of investment) * 100
The prevention and appraisal costs associated with quality are known as:
A) Cost of Confo rmance
B) Cost of Poor Quality
C) Cost of Nonconfor mance
D) Operational Costs
A) Cost of Confor mance
Note: The cost of confor mance includes the costs associated with prevention and appraisal costs.
Preventative Costs – Costs incu rred in advance of producing or deliver ing a product or se vice. Examples: DFSS, auditing, enginee ing, training
Appraisal Costs – Costs incu red du ing the process to assure the final product meets expectations. Examples: raw mate ial tests, finished product inspection, and calibrations
This Six Sigma Belt is a practitioner of Six Sigma Methodology and typically work with in their functional areas or suppo rt larger Black Belt Projects?
A) White Belt
B) Yellow Belt
C) Green Belt
D) Master Black Belt
C) Green Belt
Note: Green Belts are practitioners of Six Sigma Methodology and typically work within their functional areas or suppo t larger Black Belt Projects. Green Belts are capable of solving problems within their local span of control. Green Belts remain in their cu rent positions but apply the concepts and p inciples of Six Sigma to their job environment. Green Belts usually address less complex problems than Black Belts and pe fo m at least two projects per year. They may also be a pa t of a Black Belt’s team, helping to complete the Black Belt project.
This organizational Theo y states that a lower-level need must be satisfied before a higher-level one can be addressed.
A) McClelland’s Achievement Theo y
B) He zberg’s Hygiene Factors
C) McGrego ’s Theo y X and Theo y Y
D) Maslow’s Hierarchy of Needs
D) Maslow’s Hierarchy of Needs
Note: Maslow’s Hierarchy of Needs is a popular theo y that places the needs of an individual in a pyramid or t iangle. The theo y states that a lower-level need must be satisfied before a higher-level one can be addressed.
According to Tuckman’s ladder of team development stages, this rung is where the team begins to work productively, without worr ying about personal acceptance or control issues?
A) Fo rming
B) No rming
C) Sto rming
D) Per fo ming
B) Nor ming
Note: No ming - The team begins to work productively, without wo ying about personal acceptance or control issues. There are still conflicts; however, they tend to be focused on process issues rather than personality differences. The team begins to operate off mutual dependence and t rust.
The most effective overall approach to conflict management that incorporates multiple viewpoints and enables cooperative attitudes and open dialog to reach consensus and commitment is:
A) Collaborate/Problem Solve
B) Withdraw/Avoidance
C) Smooth/Accommodate
D) Force/Direct
E) Compromise/Reconcile
A) Collaborate/Problem Solve
Note: Collaborate/Problem Solving is a conflict management approach that incorporates multiple viewpoints and enables cooperative attitudes and open dialog to reach consensus and commitment.
What is a fo rm of contingency analysis, where the objectives and co responding tasks to be completed in a project are listed along with all relevant and significant ways the task could fail?
A) Decision Tree Analysis
B) Monte Carlo
C) Process Decision Program Char ts
D) Simulations
C) Process Decision Program Cha rts
Note: Process Decision Program Cha ts PDPC Fo m of contingency analysis, where the objectives and co responding tasks to be completed in a project are listed along with all relevant and significant ways the task could fail.
Each failure is assigned a contingency plan in order to hedge against task failure. These contingencies can be planned in advance so that, in the event of failure, the contingencies can be executed and the project is likely to remain on course and not derail.
PDPCs are similar to a fault tree analysis and can be considered a lighter version of FMEA (we will talk about later). The failure modes in a PDPC and their likely frequencies are often obtained from p ior expe ience. PDPCs are ve y advantageous for situations where failure likelihood is unknown. Having contingencies available mitigates the isk of project failure. Suppor ting data for failures and contingencies can also be found from SMEs, technical white papers, or stakeholders.
What document expands on the Business Case, cla rifies the project’s focus and measures of project per fo mance and is completed by the Lean Six Sigma Belt?
A) Project Management Plan
B) Project Cha ter
C) Six Sigma Vision Statement
D) DMAIC Objective Statement
B) Project Cha ter
Note: The Project Cha ter expands on the Business Case, it cla ifies the project’s focus and measures of project pe fo mance and is completed by the Lean Six Sigma Belt. The Project Cha ter is an impo tant document – it is the initial communication of the project. The first phases of the Six Sigma methodology are Define and Measure. These are known as “Character ization” phases that focus p ima ily on understanding and measur ing the problem at hand. Therefore, some of the info mation in the Project Cha ter, such as p ima y and seconda y met ics, can change several times. By the time the Measure Phase is wrapping up the Project Char ter should be in its final fro m meaning defects and the met ics for measur ing them are clear and agreed upon.
A hierarchical decomposition of a project’s total scope of work to accomplish project objectives and create the required deliverables?
A) DMAIC
B) RBS
C) WBS
D) DFSS
C) WBS
Note: Work Breakdown Str ucture (WBS) is a hierarchical decomposition of a project’s total scope of work to accomplish project objectives and create the required deliverables.
Risk can be either positive or negative?
A) T rue
B) False
A) True
Note: Risk: An unce tain event or condition that, if it occurs, has a positive or negative effect on one or more project objectives.
Which of these is not a focus for project closeout?
A) Met ics Closure
B) Legal Closure
C) Administrative Closure
D) Financial Closure
A) Met ics Closure
Note: A project manager should focus on the administrative, legal and financial closure of a project.
Qualitative r isk analysis looks at these two aspects?
A) Sensitivity of risk to other factors
B) Probability of isk occurence
C) Size and complexity of the project
D) Impact if risk occurs
B) Probability of r isk occur rence
D) Impact if r isk occurs
Note: A qualitative r isk analysis is done on eve y identified risk looking at them from the probability and impact.
Executives in your organization ask you why it is impo rtant to reduce var iation in a process. You explain to him that reducing or eliminating var iation reduces defects. Why is it impor tant for an organization to reduce defects?
A) Creates oppor tunities for future changes.
B) Reduces costs by reducing the COPQ
C) Efficiencies mean reducing the workforce.
D) Increases invento ry directly resulting in higher sales.
B) Reduces costs by reducing the COPQ
Note: Va iation in a process creates waste and e rors, othe wise known as “Defects”. Reducing va iation, then, will improve the process so that it creates fewer defects. The reduction in defects result in a reduction in costs by eliminating things like scrap, rework and other Costs of Poor Quality COPQ .
Your organization uses a Balanced Scorecard to look at its organizational health. What perspective of the organization is being evaluated when looking at cycle time, number of hours of rework, supplier quality, number of defects, and volume shipped?
A) Financial Perspective
B) Customer Perspective
C) Inter nal Process Perspective
D) Employee Lear ning and Growth Perspective
C) Internal Process Perspective
Note: Inte nal Process Perspective – Addresses the Six Sigma project by examining the processes that require modification or improvement to achieve the customer objectives. Examples: cycle time, number of hours of rework, supplier quality, number of defects, and volume shipped.
Executives in your organization are conce ned about profitability. They understand that many of the costs affecting profitability are hard to see. When looking at the Costs Of Poor Quality COPQ what are these intangible costs that are hard to see?
A) Hard Costs
B) Soft Costs
C) Marketing Costs
D) Invisible Costs
B) Soft Costs
Note: Generally speaking COPQ can be classified as tangible (hard costs) and intangible (soft costs). Even worse are the intangible Costs of Poor Quality. These are typically 20 to 35% of sales.
In order to be successful an organization has to constantly take a look at themselves. Your organization’s executives want to take an introspective look at themselves before deciding on the direction they want to go. You suggest this method for this introspective?
A) PESTLE Analysis
B) SMART Analysis
C) Po tfolio Analysis
D) SWOT Analysis
D) SWOT Analysis
Note: SWOT = Strengths and Weaknesses Inte nal looking) looked at together to develop offensive strategies / Oppo tunities and Threats Exte nal looking) looked at together to develop defensive strategies. It compares the inte rnal competencies and exte rnal forces to maximize an organization’s advantages and prese rve its operation.