The Philosophy of Zero Defects Is

question 44

Multiple Choice

The philosophy of zero defects is:

• A) the result of Deming's research.
• B) unrealistic.
• C) prohibitively costly.
• D) an ultimate goal; in practice, 1 to 2% defects is acceptable.
• E) consistent with the commitment to continuous improvement.

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Definitions:

Upper Bound

The highest value that a mathematical function, statistical operation, or range of variables can reach under specific conditions.

Tax Rate

The calculation basis on which taxes are applied to individual or corporate income.

Financial Break-Even

The point at which a project or company generates enough income to cover all its financial costs, including interest and principal repayments.

Discount Rate

The interest rate that the Federal Reserve charges banks for short-term loans, also used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.