(10a). A manager finds that in one of their processes, out of 1500 parts, 1477 w
ID: 427125 • Letter: #
Question
(10a). A manager finds that in one of their processes, out of 1500 parts, 1477 were produced free of defects.
What is the DPMO (defects per million opportunities) measure for this process?
(b).
The table below lists all costs of quality incurred by Sam's Surf Shop last year. What was Sam's appraisal cost for quality?
Annual cost of
inspection
$ 155,000.00
scrap materials
$ 286,000.00
rework
$ 34,679.00
quality training
$ 456,000.00
warranty
$ 1,546,000.00
testing
$ 543,000.00
Annual cost of
inspection
$ 155,000.00
scrap materials
$ 286,000.00
rework
$ 34,679.00
quality training
$ 456,000.00
warranty
$ 1,546,000.00
testing
$ 543,000.00
Explanation / Answer
a)
DPMO (defects per million opportunities)
= ( total number of defects found in a sample) * 1,000,000
( total number of defect opportunities in the sample)
= 23 / 1500 * 1,000,000
= 15333.33
= 15333
b)
Sam's appraisal cost for quality = Annual inspection costs + Annual testing costs
= $ 155,000 + $ 543,000
= $ 698,000
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