Author Question: Describe raw materials inventory and finished goods inventory. What will be an ideal ... (Read 55 times)

ghost! · **on:** Jul 7, 2018

Describe raw materials inventory and finished goods inventory.

What will be an ideal response?

Question 2

Explain the Six Sigma approach to process improvement.

What will be an ideal response?

verrinzo · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Raw materials inventory stores components like bicycle tires and other goods procured from suppliers. These raw materials must be on hand for assembly operations to occur in the Production process. Finished goods inventory is the completed products awaiting delivery to customers.

Answer to Question 2

The most common approach to process improvement, particularly in the manufacturing industry, is called Six Sigma. Six Sigma seeks to improve process outputs by removing causes of defects and minimizing variability in the process. Each Six Sigma project follows a very structured sequence of steps with quantified financial measures. Six Sigma gets its name from its goal that 99.99966 percent of process outputs will be free from defects.