Final answer:
Six Sigma refers to the standard of no more than 3.4 defects per million opportunities, achieving 99.9997% accuracy. It employs statistical methods to improve process quality, which can be supported by analyzing samples for defect rates using the 68-95-99.7 empirical rule.Option A is correct.
Step-by-step explanation:
The standard of no more than 3.4 defects per million opportunities, achieving a quality level of 99.9997% accuracy, is referred to as A) Six Sigma. This methodology seeks to improve the quality of process outputs by identifying and removing the causes of defects and minimizing variability in manufacturing and business processes. By applying empirical and statistical quality management methods and creating a special infrastructure of people within the organization who are experts in these methods, Six Sigma aims to ensure that processes are stable and predictable.
In reference to the NUMMI assembly line example provided, if 10 percent of the cars were defective, we could apply statistical analysis to determine the quality of the production process. In a sample of n = 100 cars, the count of defective cars X would follow a binomial distribution, which could be approximated with a normal distribution for large samples. Using the 68-95-99.7 empirical rule in conjunction to the normal distribution, we would expect about 68% of the samples to fall within one standard deviation from the mean, 95% within two standard deviations, and 99.7% within three standard deviations. This rule helps to understand the spread and likelihood of defects in the process.
Quality assurance, ISO 9001, and TQM (Total Quality Management) are other concepts related to the quality of a process or product, but do not specifically refer to the 3.4 defects per million standard. Quality assurance is a way of preventing mistakes and defects in manufactured products and avoiding problems when delivering solutions or services to customers. ISO 9001 is an international standard that specifies requirements for a quality management system (QMS). TQM is an organization-wide approach focused on continuously improving product quality and process efficiency.