A financial services firm is analyzing the processing time for mortgage applications. The data is highly skewed to the right due to a few complex applications taking significantly longer. A Green Belt performs both a 2-sample t-test and a Mann-Whitney test to compare processing times between two different underwriting teams. The t-test yields a p-value of 0.08, while the Mann-Whitney test yields a p-value of 0.03. Assuming an alpha of 0.05, what is the most appropriate conclusion?
Answer and explanation
Correct answer: C
The 2-sample t-test assumes that the data is normally distributed. Since the data is highly skewed, this assumption is violated, making the t-test results unreliable. The Mann-Whitney test is a non-parametric alternative that does not require normality and tests for a difference in medians, which is a more robust measure of central tendency for skewed data. Therefore, the conclusion should be based on the Mann-Whitney test, which indicates a significant difference (p < 0.05).
Question 2
During the development of a control plan for a chemical batching process, a team identifies that the viscosity of the final product is a critical-to-quality (CTQ) characteristic. The measurement is taken once per batch. Which Statistical Process Control (SPC) chart is most suitable for monitoring this process variable?
Answer and explanation
Correct answer: D
An I-MR (Individuals and Moving Range) chart is designed for continuous (variable) data where measurements are taken one at a time, making the logical subgroup size one. In this scenario, viscosity is a continuous measurement, and only one reading is taken per batch. Therefore, the I-MR chart is the most appropriate choice to monitor the process mean and variation between batches.
Question 3
A project team is conducting a Failure Modes and Effects Analysis (FMEA) on a new online order entry system. They have identified a potential failure mode: 'Incorrect shipping address captured.' The team has assigned the following scores:
Severity: 8 (major disruption; customer receives order late)
Occurrence: 3 (occurs infrequently)
Detection: 7 (only detected by customer complaint after shipment)
What is the Risk Priority Number (RPN) for this failure mode, and what does it primarily indicate?
Answer and explanation
Correct answer: B
The Risk Priority Number (RPN) is calculated by multiplying the scores for Severity, Occurrence, and Detection (S x O x D). In this case, RPN = 8 x 3 x 7 = 168. The RPN is not an absolute measure but a relative one, used to rank and prioritize potential failure modes. Teams use the RPN to focus their limited resources on mitigating the highest-risk items first.
Question 4
Multiple answers
A hospital is aiming to reduce the turnaround time for lab results. The project team has collected data and determined that the process is stable but has a Cpk of 0.75. Which of the following activities should be the team's immediate priority in the DMAIC process? (Select TWO)
Answer and explanation
Correct answers: C, E
A Cpk of 0.75 indicates the process is not capable of meeting specifications. Since the process is stable, the issue is common cause variation, not special cause events. The next logical step in DMAIC is to move to the Analyze phase to find the root causes of this inherent variation.
Fishbone diagrams and the 5 Whys are primary tools used in the Analyze phase for root cause analysis. They help the team systematically explore and identify the underlying factors (the 'vital few' x's) that are contributing to the process variation and causing the low capability.
Question 5
True or False: In a Lean environment, 'pull' systems are designed to minimize overproduction by producing goods or services only when there is a downstream demand.
Answer and explanation
Correct answer: A
This statement is true. The core principle of a 'pull' system, a fundamental concept in Lean, is to link production directly to customer or downstream process demand. This prevents the waste of overproduction, which is often considered the worst form of waste because it generates other wastes like excess inventory, transportation, and waiting.
Question 6
A software development team wants to analyze the relationship between the number of 'lines of code' (X) and the 'number of defects' (Y) in a software module. After creating a scatter plot, they perform a simple linear regression analysis. The analysis yields an R-squared (R-sq) value of 85%. What is the correct interpretation of this R-sq value?
Answer and explanation
Correct answer: C
R-squared, also known as the coefficient of determination, measures the proportion of the variance in the dependent variable (Y) that is predictable from the independent variable(s) (X). An R-sq of 85% means that 85% of the observed variation in the number of defects is explained by the linear relationship with the number of lines of code. It does not imply causation.
Question 7
Case Study:
A large e-commerce company, 'GlobalCart', is experiencing a high rate of customer complaints related to delayed shipments. A Six Sigma Green Belt is assigned to lead a project to address this issue. The project charter defines the primary metric as 'Order-to-Delivery Time' and the goal is to reduce the average time by 25% and the standard deviation by 40% within six months. The project team is currently in the Measure phase and has created a high-level SIPOC diagram.
During data collection, the team discovers that there are multiple data systems tracking different parts of the process: one for order placement, another for warehouse picking, and a third for courier tracking. The timestamps in these systems are not synchronized, and some data is manually entered, leading to potential inaccuracies. Before analyzing the end-to-end process time, the team is concerned about the quality of the data they are collecting.
What is the most critical next step the Green Belt should take to ensure the integrity of the project's Measure phase?
Answer and explanation
Correct answer: C
The principle of 'garbage in, garbage out' is critical in Six Sigma. Before any process analysis can be trusted, the measurement system itself must be validated. The lack of synchronized systems and manual entry points to significant potential measurement error. The most critical step is to establish clear operational definitions for exactly what 'Order-to-Delivery Time' and its components mean, and then perform an MSA (like a Gage R&R study, modified for a transactional process) to understand and quantify the error in the data. Without this, any conclusions drawn in the Analyze phase would be invalid.
Question 8
A project team is trying to identify the 'vital few' causes of defects from a long list of potential causes generated during a brainstorming session. Which tool is most effective for this purpose?
Answer and explanation
Correct answer: C
A Pareto Chart is a bar chart where the bars are ordered from highest frequency to lowest, illustrating the 80/20 rule (Pareto Principle). This principle states that for many events, roughly 80% of the effects come from 20% of the causes. The chart visually separates the 'vital few' causes that contribute most to the problem from the 'trivial many', allowing teams to focus their efforts effectively.
Question 9
Which of the following describes the Cost of Poor Quality (COPQ) category that includes the costs of scrap, rework, and material waste identified before a product reaches the customer?
Answer and explanation
Correct answer: C
Internal Failure Costs are incurred when defects are discovered before the product or service is delivered to the customer. Examples include the cost of rework, scrapping defective products, downgrading products, and machine downtime caused by defects. These are costs of nonconformance found within the organization.
Question 10
A team is designing a Poka-Yoke (mistake-proofing) device for an assembly process. The goal is to prevent a part from being installed backward. The team designs a fixture with an asymmetric pin configuration that only allows the part to be inserted in the correct orientation. What type of Poka-Yoke method is this?
Answer and explanation
Correct answer: B
This is a Control Method, specifically a prevention-type Poka-Yoke. It physically prevents the error from occurring. Warning methods would only signal that an error has been made (e.g., a light or buzzer), but would not stop it from happening. The asymmetric pin design makes it impossible to assemble the part incorrectly, thus preventing the defect at the source.