Question

 Each of three firms P, Q and R manufactures 100 lakhs components. The number of defective components produced by P, Q and R are 30, 42 and 47, respectively. The firm(s) in conformance with Six Sigma standard is/are

1. Only P
2. P and Q
3. P, Q and R
4. Q and R

Answer 1

Correct Answer - Option 1 : Only P

Concept:
Six Sigma: It is a set of management techniques intended to improve business processes by greatly reducing the probability that an error or defect will occur

It is a process which accepts that produces 3.4 defective parts per million opportunities (DPMO)

Calculation:

Given:
P, Q and R produces 100 lakh components

100 lakhs = 10 million

If the process contain 3.4 defective parts in one million then in 10 million it contains 10 × 3.4 = 34 defective parts 

∴  According to Six Sigma standard the allowable defective parts are 34

∵ Firm P produced 30 defective parts which are less than the allowable defective parts.

∴ Only P is in conformance with the Six Sigma standard