D P M O: Efects
D P M O: Efects
D P M O: Efects
Per
Million
Opportunities
DPMO
Defect :
feature in a product or service that causes dissatisfaction
It is a
to the customer.
2
DPMO
Defects Per Million Opportunities (DPMO) :
DPMO = (DPU) * 1 Million / Number of opportunities per unit
OR
DPMO = Defects per opportunity (DPO) * 1 Million
Ex. If 100 items are found defective from total numbers of items of one million.
It shall be referred as 100PPM
3
DPMO
Example
DPMO = (DPU) * 1 Million / Number of opportunities per unit
Ex: We checked 500 Purchase Orders (PO) and (PO) had 10 defects.
Then DPU = d/u = 10/500 = 0.02
In a PO we check for the following:
1. Supplier Address/approval
2. Quantity as per the indent
3. Specification as per the indent
4. Delivery requirements
5. Commercial requirements
• Then there are 5 opportunities for the defect to occur.
• Then, the total number of opportunities = 5*500 = 2500
4
DPMO
General Worksheet for Calculating Process Sigma
1. Number of units processed N= -------------
2. Total Number of Defects Made
(Include Defects Made And Later Fixed ) D= -------------
3. Number of Defects opportunities
Per Unit O= --------------
4.Solve For Defects Per Million D
Opportunities DPMO= 1,000,000 X
NXO
( )
= 1,000, 000 X -----------------------
( ) ( )
= -----------------------
5. Process Sigma in
Sigma Conversion table Sigma = --------------------
5
Sigma level Vs DPMO
1000000
Average Company
100000
10000
1000
Best in Class
DPMO 100
10
0.1
1 2 3 4 5 6 7 8
Sigma Quality Level
6
As Sigma increases DPMO decreases