A Manufacturer Embarking on a Six Sigma Program Sets the Goal

question 173

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 1.25,what must happen with the process standard deviation?

• A)The process standard deviation must be reduced by about 25%.
• B)The process standard deviation must be reduced by about 37%.
• C)The process standard deviation must be reduced by about 50%.
• D)The process standard deviation must be reduced by about 67%.

---

Definitions:

Quota Rent

The economic rent received by the holder of a production or import quota, which can be realized by selling the product at a higher price than the world price due to the quota limitation.

Taxi Medallion

A licensure medallion required for a taxi to operate legally in many cities, often representing a significant cost for taxi drivers and companies.

Missed Opportunity

A situation where a potential benefit or advantageous action is not taken, leading to a lost possibility.

Rent Controls

Government-imposed limits on the amount landlords can charge for leasing residential properties to ensure housing affordability.