FMEA Is Used to ________

question 30

Multiple Choice

FMEA is used to ________.

• A) check the efficacy of a business case
• B) identify ways a process or product can fail to meet critical customer requirements
• C) determine the accuracy and precision of your measurements
• D) identify inputs (Xs) and outputs (Ys) from a project you have mapped and are desiring to pursue
• E) identify non value added activities

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Definitions:

Markup

The disparity between a product or service's cost and its retail price, represented as a percentage increase from the cost.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on the relationship between estimated overhead costs and an allocation base.

Variable Manufacturing Overhead

Costs that vary with production volume, such as utilities and indirect materials.

Machine-Hours

A measure of the time that a machine is operated, used as a way to allocate machine-related costs to products.