Suppose a purchase order is inspected for the supplier address, quantity as per indent, price as per indent, and time to deliver. The inspection results for a set of 100 purchase orders are given in the table below. What is the DPMO?
We are looking for a total of 4 defects opportunities: Suppose a purchase order is inspected for the: 1) SUPPLIER ADDRESS, 2) QUANTITY AS PER INDENT, 3) PRICE AS PER INDENT, and 4) TIME TO DELIVER.
Total units in sample = 100 purchase orders.
Defect Opportunity Per Purchase Order = 4 (Read above).
Total Defect Opportunities in the sample = 100 (total units - purchase orders) * 4 (Defect Opportunity Per Purchase Order) => 400 defect opportunities.
Total Defects Discovered = 10 (1+1+3+1+2+2)
Proportion of Defects Discovered = 10/400 => 0.025.
DPMO = Proportion of Defects Discovered x Million Opportunities = 0.025 x 1000,000 => 25,000 defects.
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1 year, 7 months ago