Question 1

Just-In-Time (JIT) is a business strategy designed to improve an organization's return on investment by reducing:

Accepted Answer

Just-In-Time (JIT) is a business strategy designed to improve an organization's return on investment by reducing in-process waste.
Key Takeaway: JIT is a business strategy and methodology designed to reduce in-process waste and its associated costs to an organization. The goal of JIT is to improve the organization's return on investment by lowering costs and expenses associated with warehousing, moving, and maintaining waste.

Question 2

An organization finds that an extra measure of security added to online transactions did NOT reduce the incidence of identity theft. What is this management concept referred to?

Accepted Answer

This concept is referred to as no-value added.
Key Takeaway: No-value added (NVA) was a management term initiated in the 1980s and it has an associated with lean manufacturing. NVA is designed to comment on the ability of any process or activity undertaken by an organization to bring tangible values to its operations and finances. In this example, the added measure of security did not add value to the overall goal of the organization to reduce the incidence of identity theft.

Question 3

Business systems and detailed descriptions of processes are most likely compiled in an organization's _______.

Accepted Answer

Business systems and detailed descriptions of processes are most likely compiled in an organization's SOP.
Key Takeaway: Standard Operating Procedure (SOPs) are documents that detail business systems and processes. An organization uses SOPs to provide streamlined and consistent instructions to all employees on the operating procedures in the organization. While some procedures or processes are not formalized in an organization, most must be standardized in order to be compiled in an SOP. SOPs are also important in documenting policies, rules, and regulations.

Question 4

New trends in the monitoring and control of process performance include the following EXCEPT:

Accepted Answer

Extension of project planning phases is not included in new trends in monitoring and controlling process performance.
Key Takeaway: The monitor and control of process performance is an important aspect of a Black Belt practitioner's tool set. Among new trends in this monitoring and controlling is the use of technology-based business intelligence tools, modeling, prototypes, and the development of scenario-based requirements.

Question 5

To provide comparative standards from centers of excellence, managers use benchmarks to process capability and control goals for their employees. What indicators are important in benchmarking?

Accepted Answer

Key Performance Indicators are important in benchmarking.
Key Takeaway: Key Performance Indicators (KPIs) are organizational outputs that span across disciplines and departments. KPIs provide measurable and quantifiable benchmarks for managers to test against industry standards and previous performance. For example, the average cost of shipping goods to clients and the annual turnover in frontline employees are both KPIs.

Question 6

Business Process Reengineering (BPR) methodology aims to analyze the present state of critical business processes and then design better processes in the future. BPR aims to do so as follows EXCEPT:

Accepted Answer

Examining past performance is not a component of Business Process Reengineering.
Key Takeaway: Business Process Reengineering (BPR) methodology is designed to examine current business and manufacturing processes and design future.

Question 7

Heijunka or production-smoothing is a quality control technique designed to reduce waste in the manufacturing process. How does production-smoothing reduce waste?

Accepted Answer

Production-smoothing reduces waste by producing intermediate goods at a constant rate.
Key Takeaway: Waste reduction is an important aspect in the manufacturing process. Production-smoothing is a technique used to reduce waste by producing intermediate goods at a constant rate which allows processes that follow their production to also occur at a constant rate.

Question 8

The lean manufacturing strategy Just-In-Sequence (JIS) is a prerequisite for Just-In-Time and is designed to eliminate _____.

Accepted Answer

Just-in-Time (JIS) is designed to eliminate buffers.
Key Takeaway: In a production line, it is important to streamline the process of assembling components and parts into products. JIS is a lean manufacturing strategy that ensures the arrival of all components and parts in time and schedule before assembly is initiated.

Question 9

Which of the following concepts is credited to the Japanese engineer Genichi Taguchi?

Accepted Answer

Loss function is credited to Genichi Taguchi.
Key Takeaway: Genichi Taguchi developed 'loss function' to quantify the financial loss incurred by societies as a consequence of poor quality products. For example, societies suffer major financial losses when the quality of buildings and roads are poor and they necessitate frequent repairs and replacement.

Question 10

OLAP is a data mining system that allows for managers and employees to conduct rapid, simultaneous analytical queries. What does the P stand for in OLAP?

Accepted Answer

The P stands for Processing.
Key Takeaway: Online Analytical Processing (OLAP) is a data mining system that is based on navigational and hierarchical databases to provide rapid, simultaneous analytical queries. OLAP has applications in sales, management reporting and business process management.

Question 11

The failure of a Six Sigma project can often be traced back to a _________ that is too large.

Accepted Answer

The failure of a Six Sigma project can often be traced back to a scope that is too large.
Key Takeaway: A project scope determines the activities that project team members must undertake using available resources to deliver a product or a service. When a Six Sigma project scope is too large, it risks project failure through inadequate resources such as time and budget. A large scope also means that many of the activities have not been properly narrowed down and focused to serve the overall goals of the project.

Question 12

A limitation in Six Sigma implementation is when management offers the methodology:

Accepted Answer

A limitation in Six Sigma implementation is when management offers the methodology in a few departments in the organization.
Key Takeaway: In many organizations, Six Sigma offers limited benefits because management offers it in isolated pockets within the organization. It is important that the methodology is offered and adopted throughout the organization to avoid roadblocks and to bring all employees to a high level of efficiency and performance.

Question 13

Black Belt practitioners are expected to communicate with and lead multidisciplinary teams in Six Sigma projects. The following are attributes that affect the practitioner's credibility EXCEPT:

Accepted Answer

Undergraduate college attended does not affect a Black Belt practitioner's credibility.
Key Takeaway: Communicating effectively with team members in a Six Sigma project is very important for a Black Belt practitioner. Some of the attributes that contribute to the practitioner's credibility is competence in the knowledge, insights and tools available to him or her. Also important is their trustworthiness and ability to engage all members of the team regardless of their backgrounds and investments in the project.

Question 14

Strong leadership through involvement has a number of impacts at the following levels EXCEPT:

Accepted Answer

Strong leadership does not have an impact on regions of operation.
Key Takeaway: Strong leadership exerts its impact through involvement in Six Sigma projects. The impact is seen at different levels ranging from the individual level to the organizational one. A strong, involved leader sets and communicates goals effectively and reinforces team cooperation. A strong leader also provides concrete and timely support to all team members.

Question 15

Software application tools that allow the integration of information across different departments and functions are referred to as:

Accepted Answer

Software application tools that allow the integration of information across different departments and functions are referred to as middleware.
Key Takeaway: Enterprise Application Integration or middleware, as it is commonly known, are application tools that allow users to move data between and among management tools. Middleware also allow for the movement of data among functional departments such as finance, operations, accounting, and design.

Question 16

Which one of the following modes is ideal for informal communication?

Accepted Answer

Water-cooler discussion is ideal for informal communication.
Key Takeaway: Informal communication in an organization serves a number of purposes such as providing quick updates, offering support to employees in a deadline crunch, and addressing minor delays and complications. Informal communication that occurs in an organization such as a quick chat by the water-cooler can serve these purposes. Face-to-face meetings can also be informal depending on the nature of the discussion and its goals.

Question 17

Design for Six Sigma (DFSS) is a business process management methodology that avoid business or manufacturing process defects by focusing on the:

Accepted Answer

Design for Six Sigma (DFSS) is a business process management methodology that avoid business or manufacturing process defects by focusing on the voice of the customer.
Key Takeaway: DFSS is a separate methodology than traditional Six Sigma. DFSS is concerned with bringing the voice of the customer into the design of the given product, and that often requires the introduction of new processes or the elimination of existing ones.

Question 18

RBC Inc. requires the creation of a new application to help clients integrate their preferences with their previous purchase histories. Which of the following methodologies should they use?

Accepted Answer

They should use DMADV methodology.
Key Takeaway: DMADV methodology refers to a sequence of activities as follows: Define-Measure-Analyze-Design-Verify. This methodology is ideal for an organization that wishes to develop a new product or process to respond to a need. In this example, the organization must design the new integrated application for their client.

Question 19

A company offers a limited budget of $0.125 million to design its new clothing manufacturing machines. This process is referred to as:

Accepted Answer

This process is referred to as design to cost.
Key Takeaway: Design to cost is a process whereby an organization limits design options to the available budget. Cost, in this instance, is added to the planning stage as an independent design parameter that limits the number of options available.

Question 20

To design for manufacturability, the following methods are introduced EXCEPT:

Accepted Answer

To design for manufacturability, product quality is not held above simplicity.
Key Takeaway: Designing for manufacturability means that products are standardized and simplified so that there are fewer products with defects made in every production cycle. Manufacturability also requires that fewer active parts are designed and used in the products and a number of design alternatives are considered before settling on those to manufacture.

Quiz 1: Black Belt