What does a decreased DPMO indicate in a manufacturing process?

Prepare for the FBLA Supply Chain Management Test with flashcards and multiple choice questions. Each question includes hints and explanations. Ensure your success and confidence on the exam day!

A decreased DPMO, or Defects Per Million Opportunities, indicates that there are fewer defects occurring in the manufacturing process per million units produced. This reduction in defects typically signifies improved quality control and process performance. As fewer defects arise, it suggests that the processes are operating more efficiently, leading to a higher output of acceptable products.

When DPMO decreases, it not only reflects the quality of the manufacturing process but also implies that resources are being utilized more effectively, processes are streamlined, and less rework or scrap is needed, which ultimately contributes to overall improved process efficiency. This enhanced efficiency can lead to cost savings and a greater ability to meet customer demands with high-quality products.

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