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:

Conversion Activities

Activities in manufacturing that convert raw materials into finished goods.

Weighted Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all inventory items.

Overhead Costs

Indirect costs incurred in the running of a business that cannot be directly attributed to any specific product or service.

Process Costing System

A method of costing used where identical or similar items are produced in mass, costs are accumulated for a fixed period and assigned to all units produced.