ASQ CMQ/OE Exam 41 Questions with Verified Answers,100% CORRECT

ASQ CMQ/OE Exam 41 Questions with Verified Answers In selecting among different projects, the time value of money is considered for which of the following reasons? I. To perform a cost-benefit analysis II. To prioritize investments III. To predict cash flow IV. To reduce operating costs a) I, II, and III only b) I, II, III, and IV c) III and IV only d) I and II only - CORRECT ANSWER (D) The time value of money is considered to perform a cost-benefit analysis and prioritize investments. Q. The best tool for discovering relationships between two groups of ideas is a: I. Force field analysis II. Matrix diagram III. Prioritization matrix IV. Process Decision Program Chart (PDPC) - CORRECT ANSWER (II) A matrix diagram will effectively uncover relationships between two groups of ideas Which of the following is the biggest problem in cost-benefit analysis? I. It is easier to accurately estimate benefits than costs. II. It is easier to accurately estimate costs than benefits. III. It is an elaborate tool requiring extensive computer support. IV. It is too difficult to compute the time value of money. - CORRECT ANSWER (II) It is easier to accurately estimate costs than benefits Q. Which of the following is the definition for Internal Rate of Return (IRR)? I. A discounted cash flow technique for finding the present value of each future year's cash flow II. What remains from all money taken in after all expenses are paid III. The discount rate that causes net present value to equal zero IV. The amount of money earned as a result of completing a project, selling a product, or providing a service - CORRECT ANSWER (III) The discount rate that causes NPV to equal zero Given the following budget, calculate the actual variance for the entire budget. Advertising Expenses 2007 Budgeted 2007 Actual Yellow Pages $100.00 $175.00 Radio $750.00 $950.00 Television $500.00 $500.00 Internet $2,500.00 $2,600.00 Direct Mailing $50.00 $25.00 Annual Open House $100.00 $535.00 Total Advertising Expenses $4,000.00 $4,785.00 I. 0.1963 II. -0.1963 III. 1.1963 IV. 0.8359 - CORRECT ANSWER (I) ()/4000 Note: A negative variance means the budget was under spent. In this instance, more money was spent than was budgeted. ()/4000 Q. Work breakdown structure means which of the following: I. The project plan has failed due to a lack of support by upper management. II. An autopsy of successfully completed projects has been completed. III. The statement of work has been divided into the detailed listing of required activities. IV. The resources required for a project have not been provided. - CORRECT ANSWER (III) A work breakdown structure (WBS) is a project management technique by which a project is divided into tasks, subtasks, and units of work to be performed. Q. Which of the following are true of the critical path of a project? I. The project is important II. Events on the critical path have no slack time III. Delays of events on the critical path delay the project IV. Slack times can be added to the events on the critical path without delaying the project. a) I and IV only b) II and III only c) I and III only d) II and IV only - CORRECT ANSWER (b) The critical path refers to the sequence of tasks that take the longest time and determines the project's completion date. Which of the following statements are true for a Gantt Chart? I. The charts are easy to understand II. Each bar usually represents a single activity III. The details of activities are easily displayed IV. The estimates of optimistic, most likely, and pessimistic times are all included a) I and II only b) III and IV only c) I and III only d) II and IV only - CORRECT ANSWER (a) A Gantt chart is a type of bar chart used in process/project planning and control to display planned work and finished work in relation to time. A a project progresses, the chart will be amended to display milestones, bars representing actual times elapsed, with other symbols to indicate project status. Note that IV is true for PERT charts not Gantt charts. Q. The best tool for tracking the progress of critical project activities is a: I. PERT chart II. Project charter III. Critical Path Method IV. Gantt chart - CORRECT ANSWER (IV) A Gantt chart is very effective at showing key project tasks and progress toward project completion. Q. The best tool for understanding project enablers and obstacles is: I. Force field analysis II. Matrix diagram III. Prioritization matrix IV. Process Decision Program Chart (PDPC) - CORRECT ANSWER (I) A force field analysis compares impediments and aids to project success. Q. In a PERT chart, activities which may be done in parallel are indicated by all of the following except: I. Identical predecessor step II. Dashed arrow between activity boxes III. Same position within flow IV. Same activity number - CORRECT ANSWER (II) The dashed arrow indicates dummy activities; the parallel activity boxes are not connected to one another. Q. Which of the following are characteristics of short-term projects? I. Require a limited set of project management tools and at a lower level of sophistication. II. Are most often cross functional III. Usually require risk and feasibility analysis. IV. Are easier to obtain approval, funding and organizational support for. a) I & II b) III & IV c) II & III d) I & IV - CORRECT ANSWER (d) I and IV are short-term project characteristics. Q. In a PERT chart, activities which may be done in parallel are indicated by all of the following except: I. Identical predecessor step II. Dashed arrow between activity boxes III. Same position within flow IV. Same activity number - CORRECT ANSWER (II) The dashed arrow indicates dummy activities; the parallel activity boxes are not connected to one another. Q. Which of the following are characteristics of short-term projects? I. Require a limited set of project management tools and at a lower level of sophistication. II. Are most often cross functional III. Usually require risk and feasibility analysis. IV. Are easier to obtain approval, funding and organizational support for. a) I & II b) III & IV c) II & III d) I & IV - CORRECT ANSWER (d) I and IV are short-term project characteristics. Q. Which of the following elements would be expected to be included in a good project plan? I. Cost-benefit analysis II. Timetable for completion III. Description of required resources IV. Statement of project deliverables a) I and II only b) II and III only c) I, III, and IV only d) I, II, III, and IV - CORRECT ANSWER (d) All are important to included in a good project plan. Define Strategic Quality Goals - CORRECT ANSWER Specific, quantified and scheduled According to quality expert Joseph Juran, the most desirable sequence for TQM is: I. Develop a quality policy II. Establish a quality council III. Establish strategic quality goals IV. Train for internal audits A.) II, I, III, IV B.) II, III, I, IV C.) III, II, I, IV D.) I, II, III, IV - CORRECT ANSWER B.) II, III, I, IV The Baldrige Award performance excellence criteria address which types of performance? I. Procedural Compliance II. Supplier related III. Customer Related IV. Financial and Marketplace A.) I and IV only B.) III and IV only C.) II, III, and IV only D.) III only - CORRECT ANSWER C.) II, III, and IV only Which of the following correctly describe the Malcolm Baldrige National Quality Award (MBNQA) activities and processes? I. Upon receiving a feedback report, executive management can prioritize organizational improvement initiatives II. In answering the questions in the MBNQA criteria, a department may document its processes and become aware of gaps. III. During the MBNQA application process, employees may become more informed participants in organizational activities. IV. by showing the results of key work processes and systems, the applicant will be better prepared to manage by fact. A.) I B.) I, II, & III C.) I, II, & IV D.) I, II, III & IV - CORRECT ANSWER D.) I, II, III & IV Which of the following is NOT specifically addressed by the MBNQA Award business criteria for performance excellence? A.) Ethical behavior of leaders B.) Marketing Plans C.) Independence in internal and external audits D.) Workplace health, safety, and security - CORRECT ANSWER B.) Marketing Plans The Baldrige criteria for Performance Excellence are specifically designed to help organizations improve all except which of the following elements? A.) Communications B.) Results in General C.) Cash Flow Planning and Management D.) Organizational Capabilities - CORRECT ANSWER C.) Cash Flow and Management The Baldrige Criteria for Performance Excellence are built on a series of eleven Core Values and Concepts. Which of the following groupings contain a core value not specified by the Baldrige criteria? A.) Visionary leadership, systems perspective, documented procedures B.) Customer-driven excellence, focus on results and creating value, organizational and personal learning C.) Valuing workforce members and partners, social responsibility, agility D.) Focus on the future, management by fact, managing for innovation - CORRECT ANSWER A.) Visionary leadership, systems perspective, documented procedures The MBNQA Award criteria for Performance Excellence could be used as a quality system model for which of these types of organizations: 1.) Hospitals 2.) Elementary Schools 3.) Cancer Treatment Centers 4.) Automotive Parts Manufacturers 5.) Coffee Shops A.) 4 and 5 only B.) 1 and 3 only C.) 1, 2, 3, and 4 D.) 1, 2, 3, and 5 - CORRECT ANSWER D.) 1, 2, 3, and 5 The purpose of the ISO 9001 standard is to: i.) Provide confidence in quality management systems by offering a common basis for assessments. ii.) Provide confidence to customers and other stakeholders that the requirements for quality are being, or will be, met. iii.) Systematically pursue ever higher levels of overall company and human performance, including quality, productivity, and time performance. iv.) Build loyalties and teamwork while encouraging and supporting initiative and risk taking. A.) i and ii only B.) i, ii, and iv only C.) iii and iv only D.) i, ii, iii, and iv - CORRECT ANSWER A.) i and ii only In what way can the ISO Standards be used to support quality management systems? A.) The ISO Standards encourage the use of documented procedures B.) The ISO Standards identify employees that are poor performers C.) The ISO Standards require detailed and thorough instructions for at processes D.) The ISO Standards provide a guarantee that an organization is producing quality parts. - CORRECT ANSWER A.) The ISO Standards encourage the use of documented procedures The ISO 9001:2000 standard specifically requires a documented procedure for which of the following activities? A.) Continuous Improvement B.) Corrective Action C.) Measurement of process performance D.) Analysis of Data - CORRECT ANSWER B) Corrective Action The ISO 9001:2000 standard specifically addresses which of the following management systems? A.) Quality Management B.) Risk Management C.) Occupational Safety and Health Management D.) A, B, and C - CORRECT ANSWER A.) Quality Management Which of the following standard contains requirements for design and development? A.) ISO 9000:2000 B.) ISO 9001:2000 C.) ISO 9004:2003 D.) ISO 14004:1996 - CORRECT ANSWER B.) ISO 9001:2000 A company is required by customer contract to have a standard quality system implemented. Which system is most appropriate for this requirement? A.) MBNQA B.) ISO 9001:2000 C.) ISO 9000:2000 D.) ISO 9004:2000 - CORRECT ANSWER B.) ISO 9001:2000 What is Bench marking? - CORRECT ANSWER Process of comparing the current project, methods, or processes with the best practices and using this information to drive improvement of overall company performance. Which of the following is true? A.) Bench-marking should be an ongoing process contributing to continual improvement B.) Six Sigma methodology is only applicable to large problems causing variation manufactured product C.) A kaizen event is held in celebration of a significant process improvement D.) The concepts of TQM are passe - CORRECT ANSWER A.) Bench-marking should be an ongoing process contributing to continual improvement Which of the following concepts may best exemplify a universal business rationale for improving quality? A.) Crosby;s Do it right the first time B.) Ishikawa's Total Quality Control C.) Deming's Chain reaction D.) Juran's Trilogy - CORRECT ANSWER C.) Deming's Chain reaction Define Total Quality management. - CORRECT ANSWER Quality-centered, customer-focused, fact-based, team-driven, senior-management-led process to achieve an organization's strategic goals through continuous process improvement. Total - everyone in the organization involved Quality - concern for customer satisfaction Management - people and processes needed to achieve the quality One of the 20th Century international quality experts voiced a theory that improving quality over time was normally characterized by a series of frequent small incremental improvements combined with less frequent, but larger improvements such as those resulting from a new process or new technology. Who was this Quality expert? A.) Philip B. Crosby B.) Dr. Joseph M. Juran C.) Dr. W. Edwards Deming D.) Dr. Armand Feigenbaum - CORRECT ANSWER B.) Dr. Joseph M. Juran What is a project? - CORRECT ANSWER A series of activities and tasks with a specified objective, starting and ending dates and resources. Elements of Project Management - CORRECT ANSWER Planning - What to do Scheduling - When to do What Monitoring - Checking on Progress Controlling - Adjusting so that desired results are obtained What does PDCA stand for? - CORRECT ANSWER Plan, Do, Check, Act What are the phases of a Project? - CORRECT ANSWER 1.) Initiation 2.) Planning 3.) Execution 4.) Monitoring & Control 5.) Closure Pareto Analysis - CORRECT ANSWER Separates the "Vital Few" from "Trivial Many." Gap Analysis - CORRECT ANSWER Comparison of company's existing state to desired state Benchmarking - CORRECT ANSWER Process of measuring and comparing a companies or best-in-class companies