Failure Mode and Effect Analysis Is Used in Six Sigma

question 58

Multiple Choice

Failure mode and effect analysis is used in Six Sigma projects. It involves which of the following?

• A) Closely examining each rejected part to determine the cause
• B) A careful sampling plan
• C) Calculating a risk priority number for each possible failure
• D) Reporting the effect each failure has had on a customer
• E) Multivariate testing

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other asset or instrument at a specified price within a specific time period.

Cash Flow Hedge

A financial strategy used to manage the risk of future cash flow fluctuations due to changes in exchange rates, interest rates, or commodity prices.

Spot Exchange Rates

The current exchange rate at which one currency can be immediately exchanged for another currency in the foreign exchange market.

Derivative Fair Value

The current market value of a derivative financial instrument, reflecting potential gains or losses if it were closed out.