Gurus,
One of friend has called up this morning and asked about DPMO. They are not clear about what I tried to convey in my previous Measurement phase of Six Sigma project series. Thought of posting a new draft specially for DPMO or DPMC immediately.
And here we go:
DPMO: Defects Per Million Opportunities.
DPMC: Defects Per Million Chances.
This will give us the number of possible opportunities or chances of committing a defect in our production unit.
In detail: At any given time frame, an organization may produce 'N' number of products to the sales. The organization may have various departments or functions to produce the product. There are chances of making error from any of the department while making the product. We need to measure how many errors are coming out from each department while applying Six sigma process.
An example:The whole India is suffering from IPL fever currently and we will see an example relates with Cricket to understand it better. There is a company which produces cricket bats. They are having various departments as follows:
1) Wood selection department,
2) Measuring and marking department,
3) Wood cutting department,
4) Joining department and
5) Coloring department.
They are producing 1000 bats for a particular week. We will see how to calculate DPMO or DPMC for that week.
There are possible chances of bats getting defects due to following chances from each department.
1) Wood selection department: Cricket bats may get defect due to selection of wrong woods.
2) Measuring and marking department: Bats may get defect due to wrong measuring or marking on the woods.
3) Wood cutting department: Bats may get defect due to incorrect cutting on woods.
4) Joining department: Bats may get defect due to incorrect usage of paste or joining incorrectly.
5) Coloring department: The department may color the bats with wrong choice and hence bat may get defect on it.
The six sigma consultants observed that the below are the defects from each department for the specific week:
13 bats got defected due to wrong selection of woods,
12 bats got defected due to incorrect marking or measuring,
8 bats got defected due to wrong cutting on woods,
7 bats got defected due to usage of wrong paste to join the bats, and
10 bats got defected due to incorrect coloring.
Totally there were 50 defected bats out of 1000 bats they have produced.
We need to calculate the DPMO or DPMC by applying the formula as below:
Total number of defects
DPMO or DPMC = ------------------------------------------------------------------------ X 1,000,000
Number of units produced X number of departments
50
DPMO = ------------------- X 1,000,000
1000 x 5
= 0.01 X 1,000,000 = 10000
There are 10000 number of chances or opportunities that the bats are getting defects per million products.
Usage of DPMO or DPMC: We are using DPMO or DPMC to control the defects from various departments by providing Specification limits [Upper Specification Limit or USL, Lower Specification Limit or LSL] and Tolerance level of customers. By reducing DPMO or DPMC we will increase the profit of the organization too. We will see them in detail in upcoming posts.
Hope, I have cleared the doubts if you had any.
Let us see in the next post of Six Sigma series!!!
Happy reading, coding, managing and surfing!
One of friend has called up this morning and asked about DPMO. They are not clear about what I tried to convey in my previous Measurement phase of Six Sigma project series. Thought of posting a new draft specially for DPMO or DPMC immediately.
And here we go:
DPMO: Defects Per Million Opportunities.
DPMC: Defects Per Million Chances.
This will give us the number of possible opportunities or chances of committing a defect in our production unit.
In detail: At any given time frame, an organization may produce 'N' number of products to the sales. The organization may have various departments or functions to produce the product. There are chances of making error from any of the department while making the product. We need to measure how many errors are coming out from each department while applying Six sigma process.
An example:The whole India is suffering from IPL fever currently and we will see an example relates with Cricket to understand it better. There is a company which produces cricket bats. They are having various departments as follows:
1) Wood selection department,
2) Measuring and marking department,
3) Wood cutting department,
4) Joining department and
5) Coloring department.
They are producing 1000 bats for a particular week. We will see how to calculate DPMO or DPMC for that week.
There are possible chances of bats getting defects due to following chances from each department.
1) Wood selection department: Cricket bats may get defect due to selection of wrong woods.
2) Measuring and marking department: Bats may get defect due to wrong measuring or marking on the woods.
3) Wood cutting department: Bats may get defect due to incorrect cutting on woods.
4) Joining department: Bats may get defect due to incorrect usage of paste or joining incorrectly.
5) Coloring department: The department may color the bats with wrong choice and hence bat may get defect on it.
The six sigma consultants observed that the below are the defects from each department for the specific week:
13 bats got defected due to wrong selection of woods,
12 bats got defected due to incorrect marking or measuring,
8 bats got defected due to wrong cutting on woods,
7 bats got defected due to usage of wrong paste to join the bats, and
10 bats got defected due to incorrect coloring.
Totally there were 50 defected bats out of 1000 bats they have produced.
We need to calculate the DPMO or DPMC by applying the formula as below:
Total number of defects
DPMO or DPMC = ------------------------------------------------------------------------ X 1,000,000
Number of units produced X number of departments
50
DPMO = ------------------- X 1,000,000
1000 x 5
= 0.01 X 1,000,000 = 10000
There are 10000 number of chances or opportunities that the bats are getting defects per million products.
Usage of DPMO or DPMC: We are using DPMO or DPMC to control the defects from various departments by providing Specification limits [Upper Specification Limit or USL, Lower Specification Limit or LSL] and Tolerance level of customers. By reducing DPMO or DPMC we will increase the profit of the organization too. We will see them in detail in upcoming posts.
Hope, I have cleared the doubts if you had any.
Let us see in the next post of Six Sigma series!!!
Happy reading, coding, managing and surfing!
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