CPP Quality Management & Performance Metrics 3 — Questions and Answers
Question 1: A balanced scorecard approach to performance measurement includes which four perspectives?
- Financial, Customer, Internal Process, Learning & Growth (Correct answer)
- Quality, Cost, Delivery, Safety
- People, Process, Product, Profit
- Strategy, Tactics, Operations, Outcomes
Correct answer: Financial, Customer, Internal Process, Learning & Growth
Kaplan and Norton's balanced scorecard uses Financial, Customer, Internal Process, and Learning & Growth perspectives to provide a holistic performance view.
Question 2: Six Sigma's DMAIC methodology stands for:
- Define, Manage, Analyze, Improve, Control
- Design, Measure, Assess, Implement, Close
- Define, Measure, Analyze, Improve, Control (Correct answer)
- Develop, Monitor, Act, Inspect, Complete
Correct answer: Define, Measure, Analyze, Improve, Control
DMAIC is the structured Six Sigma problem-solving method: Define the problem, Measure baseline performance, Analyze root causes, Improve the process, and Control the gains.
Question 3: A process capability index (Cpk) value of 0.85 indicates:
- The process is highly capable and centered
- The process meets Six Sigma requirements
- The process is not capable of consistently meeting specifications (Correct answer)
- The process has excess capacity
Correct answer: The process is not capable of consistently meeting specifications
A Cpk below 1.0 means the process cannot consistently produce output within specification limits, indicating a capability problem.
Question 4: Which statistical tool on a control chart signals a process shift when seven consecutive points fall on the same side of the center line?
- Control limit breach
- Western Electric rule
- Run rule (Correct answer)
- Zone rule
Correct answer: Run rule
The run rule (also called the run of seven rule) detects process shifts by identifying seven or more consecutive points on one side of the mean.
Question 5: A company's Cost of Poor Quality (COPQ) is $500,000 annually. This figure most directly motivates investment in:
- External benchmarking
- Prevention and appraisal activities (Correct answer)
- Customer satisfaction surveys
- Supplier diversity programs
Correct answer: Prevention and appraisal activities
COPQ quantifies the cost of failures, making the business case for investing in prevention and appraisal activities that reduce defects.
Question 6: In process performance measurement, a lagging indicator differs from a leading indicator in that it:
- Predicts future performance
- Measures outcomes after they occur (Correct answer)
- Tracks real-time process behavior
- Identifies process improvement opportunities
Correct answer: Measures outcomes after they occur
Lagging indicators measure results that have already occurred (e.g., defect rates, customer complaints), while leading indicators predict future performance.
Question 7: The purpose of a measurement system analysis (MSA) or Gauge R&R study is to:
- Calculate process capability
- Determine if measurement variability is acceptable (Correct answer)
- Identify root causes of defects
- Establish control chart limits
Correct answer: Determine if measurement variability is acceptable
Gauge R&R assesses the repeatability and reproducibility of a measurement system to ensure measurement variation does not obscure actual process variation.
CPP Quality Management & Performance Metrics 3
A balanced scorecard approach to performance measurement includes which four perspectives?