ASQ CMQ-OE - Certified Manager of Quality/Organizational Excellence Exam

The concept of Cost of Quality (COQ) helps organizations understand the financial impact of quality-related activities. COQ includes various cost categories, and one of them is external failure costs. Let’s break down the options:

Rework costs:

Rework costs are associated with correcting defects or errors in products or services before they reach the customer.

These costs fall under internal failure costs, not external failure costs.

Downgrading costs:

Downgrading costs refer to the expenses incurred when products or services are downgraded due to quality issues (e.g., selling a premium product as a lower-grade product).

These costs are also considered internal failure costs, not external failure costs.

Product liability costs:

Product liability costs arise from legal claims related to defective products causing harm or injury to customers.

These costs are external failure costs because they occur after the product has been delivered to the customer.

Costs of corrective actions:

Costs of corrective actions include expenses related to identifying and addressing quality problems.

These costs are typically part of prevention costs (activities aimed at preventing defects), not external failure costs.

Therefore, product liability costs directly relate to external failure, as they involve legal consequences and customer dissatisfaction after product delivery1.

References: 2. ASQ: Cost of Quality (COQ) 3. ASQ Certified Manager of Quality/Organizational Excellence 4. CMQ/OE Body of Knowledge

The Certified Manager of Quality/Organizational Excellence (CMQ/OE) plays a critical role in facilitating and leading team efforts to establish and monitor customer/supplier relations, including measurement systems. In this scenario, the project team, which includes representatives from internal customers and internal suppliers, collaboratively develops the necessary measurements. The CMQ/OE’s expertise in quality management principles and tools can guide the team in selecting appropriate metrics and ensuring alignment with organizational goals2.

References:

ASQ Certified Manager of Quality/Organizational Excellence (CMQ/OE) Body of Knowledge (BoK)

ASQ Certified Manager of Quality/Organizational Excellence Fact Sheet

ASQ Manager of Quality/Organizational Excellence Syllabus and Exam

ASQ Certified Manager of Quality/Organizational Excellence

Kaizen is a continuous improvement methodology that aims to eliminate waste, improve processes, and enhance efficiency.

Cycle time refers to the time it takes to complete a process or produce a product from start to finish.

Take time (also known as processing time) represents the actual time spent on value-added activities during a process.

Lead time is the total time from the initiation of a process to its completion, including both value-added and non-value-added time.

Available time refers to the time available for production or processing.

Here’s how the relationships should be understood:

Cycle time should ideally be less than the take time:

This means that the process is efficient, and there is minimal non-value-added time.

Achieving this goal is a key objective of kaizen events.

Cycle time is not necessarily equal to lead time:

Lead time includes additional waiting time, transportation time, and other non-value-added components.

Reducing lead time is also a kaizen objective, but it may not always match cycle time.

Cycle time is not directly related to available time:

Available time considers factors such as machine availability, working hours, and shifts.

While improving cycle time contributes to better utilization of available time, they are not equivalent.

In summary, the goal of a kaizen event is to reduce cycle time (by minimizing non-value-added time) while ensuring that the process remains effective and efficient1.

References: 1: ASQ Certified Manager of Quality/Organizational Excellence Handbook, Fifth Edition

The benefit/cost ratio (also known as the cost-benefit ratio) is a financial metric used to assess the desirability of a project or investment. It compares the expected benefits (such as increased revenue, cost savings, or other positive impacts) to the associated costs (including initial investment, ongoing expenses, and operational costs). The formula for the benefit/cost ratio is:

[ \text{Benefit/Cost Ratio} = \frac{\text{Total Expected Benefits}}{\text{Total Expected Costs}} ]

Here’s how it applies to project management:

Project Selection: Organizations often have limited resources and must choose which projects to pursue. The benefit/cost ratio helps prioritize projects by comparing their potential benefits to the costs involved. Projects with higher ratios are more attractive because they promise greater returns relative to the investment.

Decision Criteria: When evaluating project proposals, project managers and stakeholders can use the benefit/cost ratio as a decision criterion. If the ratio exceeds a certain threshold (e.g., 1.0), the project is considered worthwhile. A ratio less than 1.0 indicates that the costs outweigh the benefits.

Risk Assessment: The benefit/cost ratio considers both quantitative and qualitative factors. It accounts for financial gains, risk reduction, improved efficiency, and other intangible benefits. By assessing risks and uncertainties, project teams can make informed decisions.

Comparing Alternatives: When choosing between multiple projects, the benefit/cost ratio allows for direct comparison. Project A may have a ratio of 2.5, while Project B has a ratio of 1.8. Project A is likely to deliver more value per unit of investment.

Long-Term Impact: The benefit/cost ratio encourages a long-term perspective. It considers the entire project lifecycle, including ongoing operational costs and maintenance. A project with high upfront costs but substantial long-term benefits may still have a favorable ratio.

In summary, the benefit/cost ratio is a valuable tool for project managers, enabling them to make informed decisions about resource allocation, project selection, and overall organizational success12. Remember that the goal is to maximize benefits while minimizing costs, ensuring efficient use of resources and achieving strategic objectives.

References:

ASQ. (n.d.). Manager of Quality/Organizational Excellence Certification CMQ/OE. Retrieved from ASQ

ASQ. (n.d.). What Is Cost of Quality (COQ)?. Retrieved from ASQ

 When faced with a decline in production in a department, the quality manager should directly engage with the supervisor who is now managing that department. By asking the supervisor about the situation, the quality manager can gather information, understand the challenges, and identify potential root causes for the decline in production. This approach allows for a targeted investigation and problem-solving process. It is essential to address the issue promptly and collaboratively with the supervisor to find effective solutions12.

References:

The ASQ Certified Manager of Quality/Organizational Excellence Handbook, Fifth Edition.

ASQ Manager of Quality/Organizational Excellence Certification (CMQ/OE) Body of Knowledge12.

The hotel’s feedback program demonstrated a fast response by promptly acknowledging the customer’s complaint and providing compensation. However, the lack of improvement in the fitness equipment condition indicates that other elements, such as root cause analysis and employee training, were not effectively addressed. To enhance the program, the hotel should consider investigating the underlying issues causing the equipment’s poor condition and ensuring that employees are empowered to make necessary improvements1.

References: 1: The ASQ Certified Manager of Quality/Organizational Excellence Handbook, Fifth Edition 12.

The hotel's feedback program demonstrates a fast response by quickly addressing the customer’s initial complaint with an apology and compensation. However, the effectiveness of the feedback program is questionable since the underlying issue (condition of the fitness equipment) was not resolved. This indicates a gap in the program's ability to implement sustainable corrective actions that address the root causes of issues.

References:

ISO 9001:2015, particularly clauses related to customer focus (clause 5.1.2) and corrective actions (clause 10.1), emphasize the need not just for responsiveness but also for effective actions that prevent problem recurrence.

Quality management principles that include customer satisfaction and continuous improvement are relevant here, suggesting that while the response was prompt, it failed to fully meet customer needs or improve the service quality.

Quality Function Deployment (QFD) is a structured approach used to translate customer requirements into specific engineering or operational requirements through various stages of product development and process planning. It is particularly useful in resolving conflicts that arise from multiple customer requirements by prioritizing them and determining the best way to satisfy those requirements within the constraints of the organization’s capabilities. QFD involves cross-functional teams and uses matrices to relate customer “wants” to “how” the organization can meet those wants, thus ensuring that customer needs are systematically integrated into the design and delivery of products and services.

References: The ASQ Certified Manager of Quality/Organizational Excellence facilitates and leads team efforts to establish and monitor customer/supplier relations, supports strategic planning and deployment initiatives, and helps develop measurement systems to determine organizational improvement1. This includes employing tools like QFD to align products and services with customer needs and resolve conflicts arising from diverse customer requirements1.

ISO 14001 is the international standard that specifies requirements for an effective environmental management system (EMS). It provides a framework that an organization can follow, rather than establishing environmental performance requirements. Part of the ISO 14000 family of standards on environmental management, ISO 14001 is a voluntary standard that organizations can certify to. Integrating it with other management systems standards, most commonly ISO 9001, can further assist in accomplishing organizational goals1.

References:

ASQ - Manager of Quality/Organizational Excellence Certification1.

The Certified Manager of Quality/Organizational Excellence Handbook2.

Let’s explore why company policies are the preferred approach:

Consistency: Company policies establish consistent practices across the organization. When authorizing projects, having standardized procedures ensures fairness and transparency.

Alignment with Objectives: Policies are designed to align with the company’s strategic goals. Project authorization processes outlined in policies consider factors such as risk assessment, resource allocation, and project alignment with organizational priorities.

Risk Management: Policies often address risk management protocols. By adhering to these policies during project authorization, organizations can mitigate potential risks.

Legal Compliance: Policies ensure compliance with legal and regulatory requirements. Authorizing projects according to established policies helps avoid legal pitfalls.

Stakeholder Communication: Policies guide communication with stakeholders. When authorizing projects, adherence to policies ensures that relevant parties are informed and involved.

Now, let’s briefly discuss the other options:

Project Team Meeting Minutes (Option A): While project team meetings are essential for collaboration and decision-making, relying solely on meeting minutes for project authorization lacks the necessary structure and consistency. Meeting minutes capture discussions but may not cover all aspects of project approval.

Employee Evaluation Form (Option C): Employee evaluation forms are used for performance assessments, not project authorization. They focus on individual performance rather than project approval processes.

Organizational Chart (Option D): Organizational charts depict reporting structures and roles within the company. While they provide context, they do not directly authorize projects. Organizational charts are useful for understanding reporting relationships but are not the primary means of project approval.

In summary, company policies serve as the best way to authorize projects, ensuring alignment, consistency, and adherence to organizational objectives1.

References: 1 The ASQ Certified Manager of Quality/Organizational Excellence Handbook, Fifth Edition. Sandra L. Furterer and Douglas C. Wood. ASQ Quality Press, 2021. Link

 Conducting a customer satisfaction survey is essential for understanding customer needs, identifying areas for improvement, and enhancing overall organizational performance. However, when interviews are limited to individuals on the company’s existing sales contact list, several limitations arise:

Exclusion of Potential New Customers: The sales contact list typically includes existing customers or those who have previously interacted with the company. By relying solely on this list, the organization misses out on valuable insights from potential new customers who have not yet engaged with the company’s products or services. These new customers may have different perspectives and expectations, which are crucial for improving overall customer satisfaction.

Bias Toward Purchasing Agents and Buyers: If the list primarily includes purchasing agents and buyers, the survey results may be skewed toward the purchasing process and transactional aspects. While these stakeholders are important, other customer segments (such as end-users, influencers, or decision-makers) may have different experiences and feedback. Limiting the survey to this group may overlook critical insights from other customer roles.

Exclusion of Dissatisfied or Lapsed Customers: The sales contact list may not capture customers who have stopped purchasing from the company or those who had negative experiences. By excluding these individuals, the organization misses an opportunity to understand the reasons behind customer attrition and identify areas for improvement. Insights from dissatisfied or lapsed customers are valuable for enhancing overall satisfaction and retention.

Outdated Information: Over time, contact lists become outdated due to changes in personnel, job roles, or organizational structures. If the list contains obsolete or incorrect information, the survey may miss relevant stakeholders or fail to reach the intended audience. Outdated data can lead to biased results and inaccurate conclusions.

In summary, relying solely on the company’s sales contact list for customer satisfaction surveys can limit the scope, introduce bias, and hinder the organization’s ability to gather comprehensive insights. To address this limitation, organizations should consider supplementing the list with additional sources (such as leads, inquiries, or potential customers) and periodically update their contact databases12.

References: 1: ASQ Certified Manager of Quality/Organizational Excellence 2: Measuring and Managing Customer Satisfaction: ISO 9001:2015 and Beyond