Question

A spreadsheet used by accountants for Company XYZ contains 25 fields in which data is manually entered. If historical data reveals that accountants make an average of two mistakes each time they complete the spreadsheet.

a. Calculate the DPO
b. DPMO
c. Determine the approximate sigma level for this task.

Answer 1

See explaination for the details of the answer

Explanation:

Defect per opportunity DPO = defects/ no. of opportunities = 2/25 = 0.08

Defect per million opportunities

DPMO = DPO * 1 million

DPMO = 0.08 * 1 million = 80,000

six sigma = 2.9, take the dpmo at higher level if not exact 80800 for 2.9