2026 TESTED SOLUTIONS
⫸ An insurance company is attempting to address minor issues with its
claim payment process. If it choose to use the PDSA cycle popularized
by deming, what would be the correct order of steps to take?
1. Implement the desired changes with a pilot program
2. Measure the performance of the modified process
3. Identify what changes to the claims process should be made.
4.Integrate successful results into the existing claims process. Answer:
3,1,2,4
(Plan Do Study Act)
⫸ Which of the following is an example of sub-optimization of the
whole?
1. The best way to optimize the whole organization is to optimize its
parts either one at a time or using some design of experiments approach.
2. Focusing on satisfying customers requirements will necessarily
optimize the whole organization
3. The only way to optimize the whole is for all to sacrifice to work
together to produce the best output (Products/services) for their
customers.
4. Organizational processes are interdependent; the requirements
specific to a subprocess may not align with organizational objectives.
, Answer: Orgnaizational processes are interdependent; the requirements
specific to a subprocess may not align with organizational objectives.
(The interconnectedness or interdependence of each process may require
an individual process to sub-optimize to fulfill broader organizational
performance goals(e.g, one sub-process may overproduce for
downstream processes, increasing levels of waste within the
organization.))
⫸ which of the following is the best reason a company will choose, all
else being equal, projects that most positively impact profitability.
1. Profit allows an organization to purchase new machinery to meet
increasing demand.
2. A company with profits can reward shareholders with quarterly
dividends.
3. High profits in the present guarantee the long-term success of a
company.
4. Earning profits allows a company to continue to work towards the
goals of management. Answer: Earning profits allows a company to
continue to work towards the goals of management.
(Profitability ensures an organization can remain an ongoing concern
and work toward its goals, regardless of how it chooses to do so.)
⫸ Which of the following statements best explains how Six Sigma
projects are related to organizational goals.
1.Six sigma projects identify process output measures that are used to
establish broader goals for the organization.