16. (3 points) A call center for processing book orders is investigating their e

Question

16. (3 points) A call center for processing book orders is investigating their error rate. The procedure calls for the customer service representative to gather the following information on each order. a. Name exactly as appears on credit card. b. Billing address exactly as on credit card statement. c. Credit card number d. Credit card expiration date e. Ship to address f. Product ID being ordered g. Quantity delivered h. Source (how did you hear from us? i. Have you used our website? j. If so, was it helpful? In a sample of 4,000 orders, 700 errors are found on 200 of the orders. What is the DPMO?

Explanation / Answer

Sample size, S = 4000

Since 700 errors are found in 200 orders.

Hence errors per order, E = 700/200 = 3.5

Number of errors found in the sample of 200 orders, N = 700

DPMO = (N*1000000) / (S*E)

= (700*1000000) / (4000*3.5)

= 50000

Hence Defects per million output, DPMO = 50000

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