Six Sigma Processes

question 25

Multiple Choice

Six Sigma processes

• A)are based on three principles: (1)all work is a statistically controllable process; (2)no well-controlled process allows variability; and (3)defect-free work requires tight statistical controls.
• B)can be used for both improving existing business processes and for developing new processes or products.
• C)can be used for improving products or business processes but not for developing new products or new processes.
• D)consists of a disciplined, statistics-based system aimed at producing not more than 10 defects per million iterations for a manufacturing or assembly process.
• E)can be used for developing new products or new business processes but not for improving existing products or business processes.

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Definitions:

PERT

Project Evaluation and Review Technique, a project management tool used to plan, schedule, and control complex tasks.

Non-Routine Projects

Projects characterized by high uncertainty, novelty, and complexity, often requiring customized approaches and flexible problem-solving strategies.

Contribution Margin

The contribution margin represents the difference between a company's sales revenue and its variable costs. It is used to assess how much revenue contributes to covering fixed costs and generating profit.

Break-Even Analysis

An economic computation identifying the moment when income matches the expenses involved in generating that income.