One of the foundations of Lean Six Sigma is the concept that the output of a process (Y) is influenced by the
process inputs (X’s) and is commonly shown as which formula?
A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw
materials for a new product upgrade. The purchasing manager is depending on the Belt’s effort requiring that
the average cost of an internal critical raw material component be less than or equal to $4,200 in order to stay
within budget. Using a sample of 35 first article components, a Mean of the new product upgrade price of
$4,060, and a Standard Deviation of $98 was estimated. In order to increase the Long Term Z value to 4, what
is the maximum long term variation in pricing the Belt can accept for his upgraded critical raw material
component?