Question 1

Albert Technologies is developing a new transistor system to launch in 2012. Which Six Sigma project methodology are managers likely to use?

Accepted Answer

Managers launching a new project are more likely to use DMADV project methodology.
Key Takeaway: Companies that are developing new products and technologies require a Six Sigma methodology that is tailored to the process. DMADV refers to a sequential process of five phases: Define Measure, Analyze, Design, and Verify. Each stage must be implemented successfully before proceeding to the following one.

Question 2

In DMAIC project methodology, the 'I' refers to the following:

Accepted Answer

In DMAIC project methodology, the 'I' refers to the improvement of current processes.
Key Takeaway: Improving current processes involves the use of data analysis techniques or observation methods. In DMAIC project methodology, improving current processes is an important prerequisite for optimizing quality and productivity as well as developing future processes.

Question 3

Jason's company manufactures parts for large car producers such as Toyota and Honda. Management at his company is committed to continuous improvement in manufacturing standards and practices through rigorous training. What is the name of this practice?

Accepted Answer

Kaizen is the commitment to continuous improvement in manufacturing standards and practices.
Key Takeaway: Kaizen is derived from a Japanese term for continuous improvement in manufacturing and business standards and practices. Kaizen is comprised of five main elements: teamwork, personal discipline, improved morale, quality circles, and improvement suggestions. The goal of Kaizen is to standardize and improve manufacturing and business activities continuously.

Question 4

The Bill & Melinda Gates Foundation requests 'business cases' of all new project proposals. What is the main goal behind the preparation of a business case?

Accepted Answer

The main goal behind the preparation of a business is to address how the project will address the business need.
Key Takeaway: A business case is a document that justifies the resources to be spent on a project. A business case elaborates on how a particular project addresses project needs, how much investment is necessary, and the expected outcomes of the project.

Question 5

David's team of architectural engineers is prompted by managers to gather Key Performance Indicators (KPIs) for their next project. What is the process whereby project KPIs are set against internal and external goals?

Accepted Answer

Benchmarking is a process whereby project Key Performance Indicators (KPIs) are set against internal and external goals.
Key Takeaway: An important aspect of initial project definition is to set KPIs that track performance across a number of areas such finance, operations, and human resources. Project teams can set KPI figures that compare against previous company projects (internal goals) or those of external competitors.

Question 6

What is the correct sequence for the use of benchmarking in the assessment of process efficiency?

Accepted Answer

To assess process efficiency using benchmarking, the correct sequence is to select KPIs, select benchmarking targets, collect data, analyze data against benchmarks, and improve strategies.
Key Takeaway: Benchmarking is a sequential process to assess efficiency and productivity against known targets. The first step in benchmarking is to select KPIs that are relevant to the process and to proceed until data is gathered and compared against targets. The goal of benchmarking is to improve business and manufacturing strategies.

Question 7

Managers at a waste management facility are exploring question-asking methods to help them understand the cause of low productivity. What technique that utilizes repeated questions can they use to get to the root of a problem?

Accepted Answer

The 5why method is a question-asking technique that helps reach the root cause of a business or manufacturing problem.
Key Takeaway: The 5why method for exploring the root cause of a business or manufacturing problem. It is based on the understanding that by the fifth 'why', major aspects of the root cause of the problem will already be revealed, such as what may be causing low productivity in a waste management facility.

Question 8

As manager of a grocery store, Jason is requested by executives to develop a SIPOC diagram for their latest expansion. What does the P stand for in the acronym?

Accepted Answer

SIPOC stands for Suppliers, Inputs, Process, Outputs, Customers.
Key Takeaway: A SIPOC diagram is a popular tool in Six Sigma and is designed to visually display all the components of a system. Beginning with Customers, a business professional can enter all information relating to the inputs and outputs of the system such as raw materials and inventory products, respectively. The diagram also allows for a detailed description of the process as well as information on the suppliers.

Question 9

Drake International is compiling a list of their customers who have purchased large items in successive years. They complete a contingency table that compiles biographical information on the customers such as age and occupation along with information on the purchases. What are the values in a contingency table based on?

Accepted Answer

A contingency table contains values based on empirical evidence.
Key Takeaway: A contingency table contains variables collected in order to be analyzed. For example, Drake International may be interested in how much money their male customers have spent in successive years and their respective occupations. A contingency table is a convenient and visually accessible manner to analyze variables that could affect business decisions such as marketing campaigns.

Question 10

Sam's research at a local manufacturing company is examining the efficiency of a new machine in detecting design failures. To present evidence to his supervisors that the machine is indeed effective, he must accept or reject the null hypothesis. According to the image below, what does the region of non-rejection imply?

Accepted Answer

The region of non-rejection in a distribution leads to the acceptance of the null hypothesis.
Key Takeaway: According to Sam's research, the null hypothesis will state that the new machine does not detect design failures. If his data analysis falls within the region of non-rejection as shown above, then his research conclusion is to accept the null hypothesis.

Question 11

A significant limitation of regression analysis is:

Accepted Answer

A significant limitation of regression analysis is an incomplete understanding of the relationship between the slope and the random error term.
Key Takeaway: Regression analysis is the most common method for making accurate predictions about future outcomes. By using data collected about two variables, regression analysis allows a business manager to make a prediction about one variable from another variable. In a regression, there is a risk of an incomplete understanding of the relationship between the slope (rate of change of one variable against the other variable) and the random error term (which takes into account the deviation of individual data points from the mean of the data set).

Question 12

Business Process Mapping (BPM) defines what a business does and the various actors within these activities. What is the final product of Business Process Mapping?

Accepted Answer

The final product of Business Process Mapping is a business process illustration.
Key Takeaway: Business Process Mapping (BPM) is an analytical tool designed to map out activities that are involved in business processes. The goal of BPM is to determine the requirements of each process in terms of people, products and information. A business process illustration is obtained from the mapping which defines what each process does.

Question 13

Root Cause Analysis (RCA) is considered to be a ______________ type of accident analysis.

Accepted Answer

Root Cause Analysis is considered to be a reactive type of accident analysis.
Key Takeaway: RCA serves to uncover the root causes of accidents and problems. Since the analysis is conducted after the accident occurs, RCA is considered to be a reactive type of accident analysis. However, many workplace accident and safety managers use information gained from RCA to predict the likelihood of accidents occurring in the future and to prevent or contain their damage.

Question 14

Green Technologies Inc. is conducting a JAD session to define those factors they think will contribute to the success of the new information system. This will include cost limitations and how to measure the success of the system. What does JAD stand for?

Accepted Answer

JAD Joint Application Development.
Key Takeaway: Joint Application Development (JAD) is a business analysis technique that was developed in the 1970s and 1980s. JAD sessions help a company develop new information systems through business requirements' analysis.

Question 15

Sam's Club executives noticed a strong, positive correlation between in-store promotions and the use of mail coupons. How does the increase of mail coupons affect in-store promotions?

Accepted Answer

In a strong, positive correlation, as more in-store promotions are conducted, more mail coupons are used.
Key Takeaway: A positive correlation between two variables indicates that when they are observed in paired instances, they follow the same pattern in change. If one increases, the other does as well and vice versa.

Question 16

A car manufacturing company is facing a class -action lawsuit because of major brake failures. The company's research department is especially implicated because their published research on the brake systems showed them to be within expected safety standards. The following are expectations of ethical experimentation EXCEPT:

Accepted Answer

In ethical experimental design, all important factors that affect results should be included.
Key Takeaway: Research ethics requires researchers to include all important factors that may affect experiment results. In the example of the brake failures, researchers are obligated to include brake performance in high speeds, for example, in their design in an effort to expose potential failures.

Question 17

The Risk Priority Number (RPN) methodology is an analytic tool that is used to determine the risks associated with potential problems for a product or a process. The following are components of the RPN equation EXCEPT:

Accepted Answer

The Risk Priority Number (RPN) methodology has the following components: severity, occurrence, and detection.
Key Takeaway: An RPN is calculated using the following equation: RPN = Severity X Occurrence X Detection. The goal of an RPN is to evaluate the risk of problems showing up during product manufacturing or processes, and to prioritize the best way to deal with these risks.

Question 18

Managers at a food manufacturing plant are studying the efficiency of sorting processes. They believe that 2% of food products contain defects; to prove this, their stated alternate hypothesis (H1) is that:

Accepted Answer

In this research, the alternate hypothesis (H1) states that 2% of food products do not contain defects.
Key Takeaway: The alternate hypothesis in a research study is the opposite of the null hypothesis and challenges the status quo. In the above food manufacturing plant, the alternate hypothesis (H1) is that 2% of food products do not contain defects.

Question 19

Three samples (1, 2, 3) are compared using ANOVA. The null hypothesis is stated as:

Accepted Answer

In ANOVA, the null hypothesis is stated as H₀: µ₁ = µ₂ = µ₃. Key Takeaway: In ANOVA, the means of three samples are compared. The null hypothesis states that all population means are equal. Equal means indicate that there are no variations due to experimental factors.

Question 20

Brian is a Management Consultant who is hired to improve the performance of a capital fundraising team. In his initial workshop, he relates the importance of understanding team development and its effects on their upcoming fundraising campaign. After 'forming', teams enter a stage where ideas compete for prominence. What is this stage called?

Accepted Answer

After 'informing', team development enters a stage of 'storming' where ideas compete for prominence.
Key Takeaway: Storming is the second stage of team development following 'forming'. In this stage, team members present their ideas for the particular task and they must establish a leadership model acceptable to all members. During this stage, they must also learn to resolve problems as they arise.

Quiz 2: Six Sigma Green Belt