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Quality Control & Process Improvement Flashcards

7 cards from real RMA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Quality Control & Process Improvement flashcards as text

  1. Which metric would best indicate the efficiency of a retirement advisory firm's client service process?

    Answer: Cycle time from initial inquiry to completed financial plan

    Cycle time measures how long it takes to complete a process from start to finish, directly reflecting process efficiency.

  2. A firm's internal audit reveals that 40% of retirement plan amendments contain at least one data entry error. In Six Sigma terms, what is the DPMO if each amendment has 5 opportunities for error?

    Answer: 80,000

    DPMO = (Defects / (Units × Opportunities)) × 1,000,000 = (0.40 × 1) / 5 × 1,000,000 = 80,000.

  3. A retirement planning firm uses benchmarking to compare its complaint resolution time to industry leaders. What type of benchmarking is this?

    Answer: Competitive benchmarking

    Competitive benchmarking compares performance metrics directly against competitors or industry leaders in the same field.

  4. During FMEA (Failure Mode and Effects Analysis) for a retirement income projection process, which factor is NOT part of calculating the Risk Priority Number (RPN)?

    Answer: Cost of the failure

    RPN = Severity × Occurrence × Detection; cost is not a component of the standard RPN calculation.

  5. A team implementing continuous improvement notices that advisers each have different methods for calculating required minimum distributions. Using lean principles, what is the best first step?

    Answer: Standardize the best-known method across all advisers

    Standardization of the best current method is the lean foundation for stable processes before further improvement can occur.

  6. A retirement advisory firm's quality dashboard shows that client plan delivery is 'in control' but consistently misses the target delivery time. What does this indicate?

    Answer: The process is stable but not capable of meeting specifications

    A process that is in control but off-target is stable yet lacks capability, requiring a fundamental process shift rather than variation reduction.

  7. Which quality tool would be most appropriate for an RMA team brainstorming all possible causes of client dissatisfaction with retirement income plans?

    Answer: Cause-and-effect (Ishikawa) diagram

    The cause-and-effect diagram (fishbone/Ishikawa) organizes brainstormed potential causes of a problem into structured categories.