Assume That a Process Is Operating on Target and 99

question 109

Multiple Choice

Assume that a process is operating on target and 99.8% of the products manufactured just fit within the specification limits. What can you say about the process?

• A) The process is not capable.
• B) The process is just capable.
• C) The process is highly capable.
• D) The process is world-class capable.

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Definitions:

Straight-line Method

A method of calculating depreciation of an asset by evenly spreading its cost over the expected useful life.

Semiannual Interest

Interest payments made twice a year on loans, bonds, or deposits.

Bond Liability

A financial obligation representing money a company owes to bondholders, to be repaid at a future date, typically with interest.

Market Rate

The current interest rate available in the marketplace on loans, bonds, or deposits, often influenced by supply and demand and the monetary policy of central banks.