Suppose a purchase order is inspected for the supplier address, quantity as per indent, price as per indent, and time to deliver. The inspection results for a set of 100 purchase orders are given in the table below. What is the DPMO?
Suppose a purchase order is inspected for the supplier address, quantity as per indent, price as per indent, and time to deliver. The inspection results for a set of 100 purchase orders are given in the table below. What is the DPMO?
To calculate the Defects Per Million Opportunities (DPMO), you need to know the total number of defects, the number of units inspected, and the number of defect opportunities per unit. Here, the number of purchase orders inspected is 100. The four defect opportunities we considered are supplier address, quantity as per indent, price as per indent, and time to deliver. The total defects discovered across all purchase orders are 10 (1 + 1 + 3 + 1 + 2 + 2). The total opportunities for defects are 100 purchase orders * 4 defect opportunities = 400. The proportion of defects is 10 / 400 = 0.025. Therefore, DPMO is calculated as 0.025 * 1,000,000 = 25,000.
We are looking for a total of 4 defects opportunities: Suppose a purchase order is inspected for the: 1) SUPPLIER ADDRESS, 2) QUANTITY AS PER INDENT, 3) PRICE AS PER INDENT, and 4) TIME TO DELIVER. Total units in sample = 100 purchase orders. Defect Opportunity Per Purchase Order = 4 (Read above). Total Defect Opportunities in the sample = 100 (total units - purchase orders) * 4 (Defect Opportunity Per Purchase Order) => 400 defect opportunities. Total Defects Discovered = 10 (1+1+3+1+2+2) Proportion of Defects Discovered = 10/400 => 0.025. DPMO = Proportion of Defects Discovered x Million Opportunities = 0.025 x 1000,000 => 25,000 defects.