Service Time Is Targeted for 15 Minutes with an Upper

question 73

Multiple Choice

Service time is targeted for 15 minutes with an upper and lower specification of 16 and 14 min. ,respectively.The process standard deviation is 0.2 min.and the process average is 14.8 min.What is the process capability ratio?

• A)1.33
• B)1.50
• C)1.66
• D)2.00

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Definitions:

Special Order

A one-time order that is not part of the company's usual ongoing operations, often requiring a deviation from standard pricing and production procedures.

Future Costs

Future costs are expected or estimated costs that will be incurred in the performance of future activities or business operations, guiding budgeting and planning processes.

Sunk Cost

Costs that have already been incurred and cannot be recovered.

Common Fixed Costs

Common fixed costs refer to expenses that remain constant for a business over a period, regardless of the level of production or sales activity.