Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company\'

ID: 449005 • Letter: J

Question

Jim Corner, owner of Corner Bike Rentals, wants to start analyzing his company's quality. For each bike rental, there are four types of customer complaints: (1) bike not working properly, (2) wrong bike size, (3) bike uncomfortable, and (4) bike broken during operation. During the past week, his company rented 280 bikes. He received a total of twenty-six complaints.

What is his company's DPMO for the past week?

Note: if needed, round to the nearest integer

With the information from the previous question, at what Six Sigma level is Corner Bike Rentals operating?

Explanation / Answer

a. What is his company’s DPMO for the past week?

DPMO = x 1,000,000

= x 1,000,000

= x 1,000,000 = 23,214 million

What is their Six Sigma operating level?

No. Standard Deviations above the mean

Percent of defect-free output

Defects per million opportunities (DPMO)

69.15

308,537

2.5

84.13

158,686

93.32

66,807

3.5

97.73

22,750

99.38

6,210

4.5

99.865

1,350

99.977

233

5.5

99.9968

99.99966

3.4

The DPMO is 23,214 million, therefore the Six Sigma operating level is 3.5