CPS Risk & Performance 3

Question 1

A process produces 950 conforming units out of 1,000. A defect opportunity exists at each of 5 steps. What is the process's Defects Per Million Opportunities (DPMO)?

Accepted Answer

50,000

Answer

DPMO = (Defects / (Units × Opportunities)) × 1,000,000 = (50 / (1,000 × 5)) × 1,000,000 = 10,000; wait — 50 defects, 5,000 opportunities = 50/5,000 × 1,000,000 = 10,000. Correct answer: 10,000.

Question 2

Process performance benchmarking against industry peers is primarily used to:

Accepted Answer

Set stretch targets and reveal performance gaps

Answer

Benchmarking compares your performance to best-in-class peers so you can set realistic yet ambitious improvement targets.

Question 3

Which risk identification technique involves systematically examining each process step to ask 'what could go wrong here?'

Accepted Answer

HAZOP (Hazard and Operability Study)

Answer

HAZOP applies guidewords (none, more, less, etc.) to each process step to systematically uncover hazards and operability problems.

Question 4

In process management, 'risk appetite' refers to:

Accepted Answer

The amount of risk an organization is willing to accept in pursuit of its objectives

Answer

Risk appetite is the level of risk an organization deliberately chooses to take on while pursuing strategic goals.

Question 5

A manager notices a process metric trending toward its control limit. According to statistical process control principles, the appropriate action is to:

Accepted Answer

Investigate for a special cause before the limit is breached

Answer

A consistent trend toward a control limit is a signal of special cause variation, warranting investigation before a defect or breach occurs.

(CPS) Certified Process Specialist Practice Test

(CPS) Certified Process Specialist Practice Test

CPS Risk & Performance 3