Six Sigma Quality Control

question 27

Multiple Choice

Six Sigma quality control

• A)is a strategy implementer's best, most reliable tool for simultaneously achieving top-notch product quality and low manufacturing costs.
• B)consists of a disciplined, statistics-based system aimed at producing not more than 2.5 defects per million iterations for a manufacturing or assembly process.
• C)consists of a disciplined, statistics-based system aimed at producing not more than 3.4 defects per million iterations for any business process.
• D)consists of a disciplined, statistics-based system aimed at fewer than 5.0 complaints per million customer transactions.
• E)is a powerful tool for companies whose customers are very picky about product quality and product performance and who can't afford for the product they use to break down and require repairs.

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Definitions:

Medallion

A distinctive badge or emblem typically made of metal, granted as a mark of honor or authenticity.

Opportunity Cost

The cost of foregone alternatives; the value of the best alternative that is not chosen in order to pursue a certain action.

Implicit Cost

The opportunity cost associated with a firm's use of resources that it owns, which do not have a direct monetary payment but could generate income if deployed elsewhere.

Option

A financial derivative that gives the holder the right, but not the obligation, to buy or sell an asset at a specified price within a given timeframe.