The Capability Index (Cpk) Indicates the Position of the Mean

question 48

True/False

The capability index (Cpk) indicates the position of the mean and tails of a process's variance relative to design specifications.

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Definitions:

Demand Impact

The effect that changes in demand have on the business operations, supply chain, or the market as a whole.

Promotion

Marketing strategies and tactics used to increase awareness, interest, and sales of a product or service.

Marginal Subcontracting Cost

The additional cost incurred by hiring a subcontractor to produce one more unit of a good or service.

Layoff Cost

The expenses associated with terminating employees, including severance pay, legal fees, and potential impacts on remaining staff’s morale and productivity.