A Six Sigma 6σ) Approach to Quality

question 5

Multiple Choice

A six sigma 6σ) approach to quality:

• A) focuses on preventing defects by using customer feedback.
• B) means there are no more than 6 defects per million opportunities.
• C) was developed by Japanese companies in the 1950s..
• D) is very close to zero defects.
• E) has soft goals such as happier customers and employees.

---

Definitions:

Pretax Return

The income or profit earned by a business before the deduction of tax.

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Annual Cash Savings

The amount of money saved over the course of a year as a result of cost-cutting measures, efficiency improvements, or other savings opportunities.

Discount Rate

The interest rate used to discount future cash flows to their present value, thereby reflecting the time value of money.