The ROI for a project is a measurement metric that stands for _____________________ and is one of the methods used to measure the success of a Lean Six Sigma project.

Question

Options

• AReturn on Investment
• BRecognition of Innovation
• CRecovery of Investment
• DReturn on Inventory

• A
  86% (32)
• B
  3% (1)
• C
  3% (1)
• D
  8% (3)

Explanation

ROI stands for Return on Investment - the ratio of net financial gain to the cost of the project, making it a standard metric for evaluating whether a Lean Six Sigma initiative delivered measurable business value. Options B ("Recognition of Innovation") and C ("Recovery of Investment") are fabricated phrases that don't exist as established business or quality metrics. Option D ("Return on Inventory") is a plausible-sounding distractor but conflates inventory (a supply chain asset) with the broader concept of investment; while inventory turns are tracked in Lean, "ROI" never refers to them. Memory tip: ROI is one of the oldest financial acronyms in business - think "did we get back more than we put in?" The word Investment is the key: you invest resources, and you measure what you Return.

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