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A team for a large research and development company conducts a study on their pr

ID: 461560 • Letter: A

Question

A team for a large research and development company conducts a study on their proposal effectiveness process across all divisions. Based on previous customer feedback and their own knowledge of the proposal process, they create 5 main defect categories (reasons why proposals are denied). Each proposal may fail any of the defect categories. (Assume defect categories are independent of each other). Based on 228 proposals, defects are counted and classified as follows: Unrealistic budget: 112 Deadline for submission not met: 32 Poor formatting: 41 Poor writing quality: 22 Proposed area of study is not company's strength: 1 Which of the following metrics would best describe the current state of this process? PPM Defective (DPM) = 912,281 DPMO = 165,323 DPMO = 182,456 Yield = 60 percentage

Explanation / Answer

in this process only DPMO can define this current state. Yield and PPM are based on overall defect in the application and not individual defects-

DPMO = 1,000,000 x (112+32+41+22+1)/(228 x 5)

= 182,456.14

~ 182,456

Ans : c) DPMO = 182,456

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