What Is Meant by the Term 'Six Sigma' Quality Control

question 38

Essay

What is meant by the term 'Six Sigma' quality control? How can an organisation effectively implement the Six Sigma approach to quality control?

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted, contributing towards covering fixed costs and profit.

Net Loss

The result when a company's total expenses exceed its total revenues over a specific period, indicating a negative profit.

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Special Order

An order for a product or service that is outside the company's standard offerings, often requiring customization.