APM Performance optimisation

45 defects are found in 5,000 units, each with 4 opportunities for a defect. The defects per million opportunities (DPMO) is:

• 1 900
• 2 2,250
• 3 9,000
• 4 225

Overall equipment effectiveness with availability of 90 percent, performance of 95 percent and quality of 98 percent is closest to:

• 1 87.0%
• 2 94.3%
• 3 92.0%
• 4 83.8%

The stages of the DMAIC cycle used in Six Sigma are:

• 1 Detect, measure, act and inspect
• 2 Plan, organise, lead and control
• 3 Define, measure, analyse, improve and control
• 4 Design, make, assess, issue and check

Kaizen costing and kaizen in general are based on:

• 1 Re-engineering from scratch
• 2 Continuous small improvements by everyone
• 3 Cost cutting by management only
• 4 One large change by management

Which of these is an internal failure cost in the costs of quality?

• 1 Cost of replacing faulty goods for customers
• 2 Cost of scrapping and reworking defective units found before delivery
• 3 Cost of inspecting incoming material
• 4 Cost of staff training in quality

Beyond budgeting suggests that organisations should:

• 1 Replace fixed annual budgets with rolling forecasts and relative performance targets
• 2 Remove all planning
• 3 Budget at the end of the year
• 4 Use only incremental budgets

Business process re-engineering differs from continuous improvement because it:

• 1 Is led by the lowest levels only
• 2 Makes small changes
• 3 Needs no investment
• 4 Involves a radical redesign of a process