Fred is an operations manager at Cyber Electronics Co., a midwestern company tha

Question

Fred is an operations manager at Cyber Electronics Co., a midwestern company that produces advanced security cameras. Fred
claims that his process is capable of performing at the 6? standard level. After an annual quality inspection report, Fred found that he
had 40,107 defective free security cameras out of 40,108 cameras produced. A camera was considered defective if it was damaged,
arrived late to the customer's location or was missing proper documentation.
What is the DPMO measure for this process? (Round your answer to the nearest whole number.) Based on your calculations, would
you say that Fred's process meets the 6? standard?

Explanation / Answer

Ans:- Defects per million opportunity is defined as ratio of numer of defects in a sample to the opportunity of defects in total units multiplied by 1 Million.

In this case opportunity of defects per unit is 3 (damaged,
arrived late to the customer's location or was missing proper documentation).

DPMO = (No of defects/ (Opportunity for defects per unit * No of units))* 1 Milllion

= (40107/ (3*40108)) * 1 Million

= 40107*8.31

= 333325

Process is not at all at 6 standard level. For a 6 standard level, DPMO is 3.4 whereas in this case it is 333325.

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