Practice Quiz

Six Sigma Black Belt Exam Prep

Category - Black Belt

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A Black Belt practitioner is hired to identify a number of Critical to Price (CTP) factors in an effort to streamline and reduce costs associated with manufacturing Product A. The following are CTP factors EXCEPT:
  1. component costs
  2. assembly costs
  3. shipping costs
  4. loan refinancing costs
Explanation
Answer: D - Loan refinancing costs are not a CTP factor.

Key Takeaway: Critical to Price (CTP) factors are factors that influence the costs of a process. To manufacture Product A, a number of costs including components, assembly and shipping would be included in the construction of a CTP tree.
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