If Your Process Has Reached Maturity, and Has Achieved Lower

question 6

Multiple Choice

If your process has reached maturity, and has achieved lower costs, shorter development times, higher quality, and higher productivity, then it must have:

• A) Process predictability.
• B) Process control.
• C) Process compliance.
• D) Process effectiveness.

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Definitions:

Direct Materials

Raw materials that can be directly linked to the production of finished goods in manufacturing.

Fixed Overhead

Fixed Overhead refers to the consistent, non-variable expenses incurred by a business, regardless of its level of production or sales activities.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the proportional relationship between fixed and variable costs.

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and profit.