The Upper and Lower Specification Limits for a Component Are

question 193

Essay

The upper and lower specification limits for a component are 3.98 and 4.02 inches, respectively. The process standard deviation is .004, and the process average is 4.005 inches. Is this process capable of achieving four-sigma performance (the four-sigma performance target value is 1.33)?

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Definitions:

FASB

The Financial Accounting Standards Board, responsible for establishing and improving standards of financial accounting and reporting in the U.S.

Legal Obligations

Commitments or duties that are enforced by law, requiring entities or individuals to act or refrain from acting in a certain way.

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Obligations that are not enforceable by law but may be morally or ethically binding.

GAAP

Generally Accepted Accounting Principles (GAAP) are a set of rules, standards, and procedures that companies must follow when compiling their financial statements in the United States.