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Using Gauge R&R to Verify Measurements Is a Major Step

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Using gauge R&R to verify measurements is a major step in the DMAIC analyze phase.


Definitions:

Net Operating Income

The profit generated from a company's regular business operations, excluding deductions for interest and taxes.

Variable Costing

A costing method where only variable production costs are assigned to inventory and all fixed overhead costs are expensed in the period they are incurred.

Variable Production Costs

Costs that vary directly with the volume of production, including direct labor and materials.

Traceable Fixed Expense

Fixed costs that can be directly linked to a specific segment of the business, and would disappear if the segment did.

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