APM Performance optimisation

ACCA · Strategic Professional · 7 questions

Name: ____________________   Date: ____________

1. 45 defects are found in 5,000 units, each with 4 opportunities for a defect. The defects per million opportunities (DPMO) is:

   • A 900
   • B 2,250
   • C 9,000
   • D 225

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

   • A 87.0%
   • B 94.3%
   • C 92.0%
   • D 83.8%

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

   • A Detect, measure, act and inspect
   • B Plan, organise, lead and control
   • C Define, measure, analyse, improve and control
   • D Design, make, assess, issue and check

4. Kaizen costing and kaizen in general are based on:

   • A Re-engineering from scratch
   • B Continuous small improvements by everyone
   • C Cost cutting by management only
   • D One large change by management

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

   • A Cost of replacing faulty goods for customers
   • B Cost of scrapping and reworking defective units found before delivery
   • C Cost of inspecting incoming material
   • D Cost of staff training in quality

6. Beyond budgeting suggests that organisations should:

   • A Replace fixed annual budgets with rolling forecasts and relative performance targets
   • B Remove all planning
   • C Budget at the end of the year
   • D Use only incremental budgets

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

   • A Is led by the lowest levels only
   • B Makes small changes
   • C Needs no investment
   • D Involves a radical redesign of a process