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D P M O: Efects

This document defines key quality metrics such as defects, defect per unit (DPU), opportunities, defects per million opportunities (DPMO), and parts per million (PPM). It provides a formula to calculate DPMO based on DPU and the number of opportunities per unit. An example calculation is shown for a sample of 500 purchase orders where 10 defects were found across 2500 total opportunities. The document also includes a chart mapping sigma levels to the expected DPMO, with 6 sigma quality achieving on average 3.4 defects per million opportunities.

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Arvinda Kumar
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© Attribution Non-Commercial (BY-NC)
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Download as PDF, TXT or read online on Scribd
292 views

D P M O: Efects

This document defines key quality metrics such as defects, defect per unit (DPU), opportunities, defects per million opportunities (DPMO), and parts per million (PPM). It provides a formula to calculate DPMO based on DPU and the number of opportunities per unit. An example calculation is shown for a sample of 500 purchase orders where 10 defects were found across 2500 total opportunities. The document also includes a chart mapping sigma levels to the expected DPMO, with 6 sigma quality achieving on average 3.4 defects per million opportunities.

Uploaded by

Arvinda Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Defects

Per

Million

Opportunities
DPMO
Defect :
feature in a product or service that causes dissatisfaction
It is a
to the customer.

Defect Per Unit (DPU) :


Total number of defects in sample
divided by
total number of units.
Opportunity :
A unit may have more than one type of defect.
Each is an opportunity.

Ex: A watch case may have pits, burr etc.

2
DPMO
Defects Per Million Opportunities (DPMO) :
DPMO = (DPU) * 1 Million / Number of opportunities per unit
OR
DPMO = Defects per opportunity (DPO) * 1 Million

Parts Per Million (PPM) :


A Number taken as reference from the sum total of one 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

• DPO = = 10/2500 = 0.004


• DPMO = DPO* 1 Million = 4000

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

6 Sigma 3.4 Defects

Sigma levels and


Defects per million
opportunities
(DPMO)
5 Sigma 233 Defects

4 Sigma 6,210 Defects


DPMO
SIX SIGMA LEVEL

3 Sigma 66,807 Defects

2 Sigma 308,537 Defects

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