A Manufacturer Embarking on a Six Sigma Program Sets the Goal

question 119

Multiple Choice

A manufacturer embarking on a Six Sigma program sets the goal of having true Six Sigma capability for all processes by the end of the month.If their current process capability index on a key metric is less than 2.0 and the process capability ratio is 1.0,what must happen with the process standard deviation?

• A)The process standard deviation must be doubled.
• B)The process standard deviation must be reduced by a factor of six.
• C)The process standard deviation must be cut in half.
• D)The process tolerances should be doubled.

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Definitions:

Value Range

The spread between the highest and lowest values of a financial asset, indicating its volatility and potential for profit or loss.

Certainty Approach Method

A technique used in decision-making that involves evaluating the outcomes of decisions assuming that no uncertainty exists in the operational environment.

Annual Cash flows

The total amount of money being transferred in and out of a business over the course of a year.

Expected NPV

The anticipated net present value of an investment, considering various future scenarios and their probabilities.