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:

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of non-direct labor.

Machine Hours

A measure of the total time that machines are operated over a specific period, often used for allocating manufacturing overhead costs to products.

Overapplied Overhead

A situation where the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production.