A spreadsheet used by accountants for Company XYZ contains 25 fields in which da

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 and (c) determine the approximate sigma level for this task. Assume each field is an "opportunity." You may use the following link for part "c" or there are alternative links in the lecture slides. SHOW YOUR WORK. http://www.100pcefrective.com/wp-content/uploads/6-Sigma-Conversion-Tablc.pdf What if, instead of defining an entire field as an "opportunity, " Company XYZ decides to use each required keystroke? Assume the accountants enter five characters in each of the 25 fields, and re-calculate the sigma level. Keep the number of mistakes the same as in #2. SHOW YOUR WORK.

Explanation / Answer

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

Defect per million opportunities DPMO = 0.08 * 1 million = 80,000

six sigma = 2.9 (as per the link given, take the dpmo at higher level if not exact 80800 for 2.9 )

3. when he enters 5 characters in each of the 25 fields, then the total opportunities are 25*5 ie.125

Defect per opportunity DPO = defects/ no. of opportunities = 2/125 = 0.016

Defect per million opportunities DPMO = 0.08 * 1 million = 16,000

six sigma = 3.6 (as per the link given)

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