BANK COMPLETE QUESTIONS AND
CORRECT DETAILED ANSWERS ALREADY
GRADED A+
Another Deming Contribution: PDCA-plan: identifying and analyzing the problem -
Answer--do: developing and testing a potential solution
-check: measuring how effective the test solution was, and analyzing whether it could
be improved in any way
-act: implementing the improved solution fully
The Baldrige Award - Answer--established by Reagan in 1987
-similar to Deming prize in Japan
-rated on 7 core values
-externally rated on customers/strategic position
Categories for Malcolm Baldrige Award - Answer--manufacturing companies or
subsidiaries that produce and sell manufactured products or manufacturing processes
OR produce agricultural, mining, or construction products
-service companies or subsidiaries that sell service
-small businesses
-health care organizations
-educational institutions
-not for profits (new in 2006)
-the companies formulated a vision of what they thought quality was and how they
would achieve it
-senior management was actively involved
-companies carefully planned and organized their quality effort to be sure it would be
effectively initiated
-they vigorously controlled the overall process
ISO 9000 - Answer--not an award: certification process
-less broad than Baldrige
-are processes documented, consistently performed, and suited to the task?
-internally focused on processes
-standard to do business internationally
-you can lose this (you cannot lost Malcolm Baldrige Award)
ISO 9000 Standards, Their Areas of Application in Production Flow (9003, 9002, 9001) -
Answer-Week 10 Page 3 Google Doc
, ISO versus Baldrige - Answer--Baldrige award recognizes based on external
management that you've done that
-about half of Baldrige winners are ISO certified
-most companies perceive ISO harder and they go for that first before going to Baldrige
but you don't have to pursue either in any order
Six-Sigma Methodology - Answer--Six Sigma is a systematic project oriented
methodology that uses the DMAIC cycle
Week 10 Page 3 Google Doc
Six Sigma Quality - Answer--do we really need "six sigma" level quality?
-isn't 99% good enough?
Week 10 Page 4 Google Doc
Why Six Sigma? Because 99% isn't good enough!
The "goodness level" of 99% equates to: - Answer--20,000 lost articles of mail per hour
-unsafe drinking water almost 15 minutes each day
-5,000 incorrected surgical operations per week
-2 short or long landings at major airports each day
-200,000 wrong drug prescriptions each year
-no electricity for almost 7 hours per month
Organizing the Roles Needed to Support Six Sigma Efforts - Answer-Week 10 Page 4
Google Doc
Continuous Improvement - Answer--small changes to existing processes to improve
quality in the long run
-a primary tool is the 7 tools of quality (also known as the magnificent seven): process
flow charts, causes and effects diagram, control charts, histograms, check sheet, pareto
charts, and scatter diagrams
Process Flow Chart - Answer--a picture which describes the main steps, branches, and
eventual outputs of a process
Week 10 Page 5 Google Doc
Cause and Effect Diagram - Answer--fishbone or Ishikawa. A tool that uses a graphical
description of the process elements to analyze potential sources of process variation
Week 10 Page 5 Google Doc and
Week 10 Page 8 Google Doc
Control Charts - Answer--a time sequence chart showing potted values of a statistic,
including a central line and one or more statistically derived control limits