What is the primary approach employed by Lean Six Sigma to reduce the number of defects?
A) Add inspection to isolate the customer from process instability.
B) Reduce process variability at the source through redesign or process controls.
C) Revise specifications to better reflect customer expectations.
D) Provide incentives to the workforce to eliminate defects.
E) Educate customers to manage product/process expectations. - Answers B) Reduce process variability
at the source through redesign or process controls.
National Fiduciary Guaranty Bank has been losing market share in home mortgage lending over the last
several years. Surveys indicate very low customer satisfaction ratings for the home mortgage process.
The bank recently chartered a Lean Six Sigma team to address the performance problem. The team has
examined several process factors, including loan pricing, credit requirements, loan closing cycle-time
and employee training as they relate to customer satisfaction and new loan volume. Which of the
following are potential key process inputs in the bank's home mortgage business?
A) Customer Satisfaction, Credit Requirements, Historical Loan Closing Cycle-Time
B) Loan Pricing, Employee Training, Customer Satisfaction
C) Loan Pricing, Credit Requirements, Employee Training
D) Credit Requirements, New Loan Volume, Customer Satisfaction
E) Historical Loan Closing Cycle-time, Customer Satisfaction, Employee Training - Answers C) Loan
Pricing, Credit Requirements, Employee Training
The expression Y=f(X) is often used to describe the relationship between process inputs and the process
output. Which description of Y=f(X) is most accurate?
A) The output of a process (X) is a function of the process inputs (Y).
B) More process inputs (X) improve the function of the process output (Y).
C) Reducing the function of a process input (X) will increase process output (Y).
D) More process inputs (Y) improve the function of the process output (X).
E) The process output (Y) is a function of the process inputs (X) - Answers E) The process output (Y) is a
function of the process inputs (X)
What is the definition of a defect?