General Studies · Six Sigma
Epsilon Bank is struggling with high variability in its mortgage application approval process, leading to a long and unpredictable lead time. A Six Sigma (SS) project team calculates the current process capability to be 3.5 Sigma. The team proposes to reconfigure the approval process from a traditional sequential flow to a Cellular Manufacturing or One-Piece Flow layout. What is the primary Six Sigma objective that the One-Piece Flow layout directly supports, and what improvement is expected in the defect rate (DPMO) if the process is improved to a 4.5 Sigma level?
- 1The primary objective supported is Measure, as the layout makes data collection easier; DPMO is expected to reduce from 66,807 to 1,350.
- 2The primary objective supported is Improve, as the layout is a structural change that eliminates process waste; DPMO is expected to reduce from 66,807 to 3.4.
- 3The primary objective supported is Analyze, as the continuous flow simplifies root cause identification; DPMO is expected to reduce from 22,750 to 1,350.
- 4The primary objective supported is Improve, as the layout is a structural change that eliminates process waste; DPMO is expected to reduce from 22,750 to 1,350.✓
Correct answer
The primary objective supported is Improve, as the layout is a structural change that eliminates process waste; DPMO is expected to reduce from 22,750 to 1,350.
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