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However, it’s important to first understand the difference between two terms commonly used in connection with these performance measurement tools. Four of the most common measurements are Defects Per Unit (DPU), Defects per Million Opportunities (DPMO), Parts per Million Defective (PPM), and the Rolled Throughput Yield (RTY). By using 1,000,000 opportunities as the barometer we have the resolution in the measurement to count defects all the way up to Six Sigma.When working on a Six Sigma project, accurate methods to measure process performance metrics are critical for understanding the current state of a process and the value of changes made. When this happens, the number of defects shrinks to virtually nothing….in fact, if you recall from the ‘What is Six Sigma’ module, it’s 3.4 defects per million opportunities. What is the reason or significance of 1,000,000″? Converting defect rates to a per million value becomes necessary when the performance of your process approaches Six Sigma. Defect Opportunities when producing 100 pencils = 5*100 or 500.Your organization averages of 4 defects every 100 units.There are 5 defect opportunities per pencil (lead, wood, eraser, eraser clasp and label).However, that only serves to limit the organizations ability to continuously improve it’s process and output.
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Most organizations only measure the rate of defectives (you know, the broken ones! because they can’t be sold). It’s not a difficult metric but what makes it unique and effective is that it considers the various possible “defects” that a product or service might have and it provides a measure to observe performance relative to all possible mistakes a process can make. The equation is DPMO = (D/(U*O))*1,000,000įirst, find your total opportunities by multiplying the # of units by the # of defect opportunities per unit, then divide defects by your total opportunities then multiply by one million.Calculating Defects per Million Opportunities If we produce 100 of those units then there are 600 defect opportunities. If for example a unit has 6 possible defects then each unit produced is equal to 6 defect opportunities. Opportunities are the total number of possible defects. Now let’s turn our attention to defining “opportunities” so that we can fully understand Defects per Million Opportunities (DPMO). Defective means that the whole unit is bad.Defect means that part of a unit is bad.A single defect may or may not render the product or unit “defective” depending on the specifications of the customer. DefectĪ defect is an error, mistake, flaw, fault or some type of imperfection that reduces the value of a product or unit. To put it simply, defective is “broken”, it can’t be used or sold. Typically however, it takes multiple defects and/or critical defects to cause an item to be defective. Defective items will always have at least one defect. DPMO Nomenclature:ĭefining “defect”, “defective” and “Opportunities” Defectiveĭefective suggests that the value or function of the entire unit or product has been compromised. In order to understand DPMO it’s best if you first understand both the nomenclature and the minor nuances such as the difference between defect and defective. DPMO is one of a few important Six Sigma metrics that you should get comfortable with if you’re associated with Six Sigma.