BMO Quality Assurance & Improvement 5

Question 1

In quality management, what is a 'service level agreement' (SLA)?

Accepted Answer

A contract defining the minimum acceptable quality and performance standards for a service

Answer

An SLA is a formal agreement that specifies the expected level of service, including metrics like response time and availability.

Question 2

A credit analyst consistently underestimates risk on small business loans. Which quality improvement action addresses the root cause most effectively?

Accepted Answer

Retrain the analyst and update scoring criteria based on error pattern analysis

Answer

Addressing skill gaps through targeted retraining and improving the criteria tackles the root cause rather than just the symptom.

Question 3

What does 'cost of quality' (COQ) include?

Accepted Answer

Both prevention and appraisal costs plus internal and external failure costs

Answer

Cost of quality encompasses all four categories: prevention, appraisal, internal failure, and external failure costs.

Question 4

A bank's mobile app team receives feedback that the account transfer feature is confusing. The team gathers user complaints and groups them by theme. Which tool are they using?

Accepted Answer

Affinity diagram

Answer

An affinity diagram organizes large amounts of qualitative data into logical groupings based on natural relationships.

Question 5

Which statement best describes 'proactive' quality management versus 'reactive' quality management?

Accepted Answer

Proactive = building quality into the process to prevent defects; Reactive = detecting and correcting defects after they occur

Answer

Proactive quality management prevents defects through good process design, while reactive quality management focuses on finding and fixing defects after they occur.

(BMO) Bank of Montreal Assessment Practice Test

(BMO) Bank of Montreal Assessment Practice Test

BMO Quality Assurance & Improvement 5