The Main Process Change That Can Be Detected with a Process

question 18

Multiple Choice

The main process change that can be detected with a process control chart is:

• A) the process average has shifted up or down from normal.
• B) the process average is trending up or down from normal.
• C) the process is behaving in such a manner that the existing variation is not random in nature.
• D) All of the above

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Definitions:

Opportunity Cost

The cost of foregoing the second-best option when making a decision, representing the benefits that could have been received by taking a different action.

Make-Or-Buy Decision

A decision-making process used by businesses to determine whether to produce goods in-house or purchase them from an external supplier.

Cost Recovery

The process of recouping the costs of an investment, expense, or other outlay of funds, often related to capital projects, taxes, or legal judgments.

Investment

The allocation of resources, usually money, into assets or projects expected to generate future profits or income.