Six Sigma Black Belt Certified Practice Exam

The notation B/(I+C) represents a common method for project selection in Six Sigma and other quality improvement methodologies. In this context, B stands for the benefits of the project, I represents the investment required, and C denotes the costs associated with the project. The formula evaluates the ratio of benefits to the total investment and costs.

Selecting projects with a ratio greater than 1 indicates that the benefits derived from the project significantly outweigh the costs and investment required to implement it. This scenario is desirable because it suggests that the project will be profitable and yield a positive return on investment. When the ratio is greater than 1, it suggests that the organization will gain more value from the project's outcomes than it will spend on it, aligning with strategic goals for maximizing efficiency and effectiveness.

In light of this, the other options reflect ratios that would either provide insufficient return (such as greater than or equal to 1, or less than or equal to 1), which could indicate projects that do not justify their associated costs or investments, making them less favorable choices. Thus, seeking projects with a B/(I+C) ratio greater than 1 becomes crucial for ensuring positive financial and operational outcomes.