Page 45 - Six Sigma Demystified

26 Six SigMa DemystifieD

ChaPTER 1 Quiz

1. As the sigma level for a process increases,
a. the number of opportunities for error decreases.
B. the cost of quality as a percent of sales increases.
C. the DPMO increases.
D. the DPMO decreases exponentially.

2. Practical uses of the Six Sigma methodologies
a. can be found only in Fortune 100 companies.
B. are limited to companies that manufacture products.
C. are limited to Fortune 100 companies that manufacture products.
D. are found across many industry sectors and company sizes.

3. A typical organization with a 3s level of quality spends approximately
a. 50 percent of its revenues on quality- related activities.
B. 15 to 25 percent of its revenues on quality- related activities.
C. 1 to 2 percent of its revenue on quality- related activities.
D. none of its revenues on quality- related activities.

4. Four fundamental pillars of a successful Six Sigma deployment include
a. plan, do, check, and act.
B. plan, do, study, and act.
C. organizational support/resource allocation, management leadership, data-
driven decision making, measurement, and feedback.
D. failure modes and effect, cause and effect, statistical process control, and
designed experiments.

5. If you estimate your cost of quality as 2 percent of sales and your overall
DPMO is about 20,000, then

a. your sigma level is about 3.5.
B. you are probably underreporting the cost of quality.
C. you should look for evidence of a hidden factory.
D. all the above are true.

6. Management can take a leadership role for Six Sigma deployment by
a. defining goals and objectives for the program based on key customer
requirements and market conditions.
B. defining and tracking business- level metrics for key stakeholder groups.
C. allocating and training resources and advocating the merits of the program to
the workforce.
D. all the above are true.