In a study of Gate City Transit System (GCTS) operations, 21 late buses were rep

Question

In a study of Gate City Transit System (GCTS) operations, 21 late buses were reported yesterday: 850 buses were dispatched, there were 2 opportunities to be late (pick up and drop off) per bus. a) Find the number of Defects per unit b) Find the number of Defects per million opportunities (DPMO) c) Find the Defect % d) Find the Yield % Example 3: Order Processing Requirements: - Name exactly as appears on credit card - Billing Address exactly as on credit card statement - Credit card number - Credit card expiration date - Product ID being ordered - Quantity Ordered A study of records over the past month discovers 600 errors on 200 orders in random sample of 4,000 orders, each with 6 critical characteristics. Find a) DPMO b) Sigma Level

Explanation / Answer

Q.2 (a) Find the number of defects per unit (DPU) = Total number of defects/ (NUmber of units or sample * NUmber of defects opportunities per unit) = 21/ (850 *2 ) = 0.0124

(b) NUmber of defects per million opportunities (DPMO) = 100000 * Total number of defects/ (NUmber of units or sample * NUmber of defects opportunities per unit) = 12353 defects per million

(c) Defect percentage = (21 *100)/(850 *2) = 1.235%

(c) Yield percentage = 1- 0.01235 = 98.77%

Question 3

defects per million opportunities (DPMO) = 1000000 * Total number of defects/ (NUmber of units or sample * NUmber of defects opportunities per unit)

= 1000000 * 600/ (4000 * 6) = 25000 DPMO

Defect Percentage = (600 * 100)/ (4000 * 6) = 2.5%

Yield percentage = 97.5%

(b) Sigma level =

SO here Yield percentage = 97.5% so we can say in layman terms that 2.5% is outside the normal curve.

so that gives us value from Z - table = +-2 that makes it a sigma level 4

and if we assume 1.5 sigma shift here that makes it = 2 + 1.5 = 3.5 sigma level

Six Sigma Table: 1 690,000 2 308,000 3 66,800 4 6,210 5 320 6 3.4

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