A Manufacturer Embarking on a Six Sigma Program Sets the Goal

question 25

Multiple Choice

A manufacturer embarking on a Six Sigma program sets the goal of having True Six Sigma capability for all processes by the end of the month. If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.70, what must happen with the process standard deviation?

• A) The process standard deviation must be reduced by 50%.
• B) The process standard deviation must be reduced by 33%.
• C) The process standard deviation must be reduced by 25%.
• D) The process standard deviation must be reduced by 15%.

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Definitions:

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.

Marginal Benefits

The bonus satisfaction or utility acquired from consuming an additional unit of a product or service.

Marginal Costs

The increase in expense associated with manufacturing an additional unit of a product or service.