The Program Which Incorporates the Statistical Approach of Six Sigma

question 49

Multiple Choice

The program which incorporates the statistical approach of Six Sigma with the lean manufacturing program originally developed by Toyota is known as

• A) reengineering.
• B) Lean Six Sigma.
• C) job enlargement.
• D) just-in-time.
• E) flexible manufacturing.

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Definitions:

Standard Overhead Cost

The predetermined rate of allocating fixed and variable overhead expenses to goods or services produced.

Actual Overhead

Actual overhead refers to the real costs incurred for overhead expenses, such as utilities, rent, and administrative costs, during a given period.

Direct Materials Price

The cost per unit of raw materials that are directly traceable to the production of goods.

Direct Labor Rate Variances

The difference between the actual cost of direct labor and the expected (or standard) cost, used in variance analysis to monitor labor costs.