Correct Method To Count Six Sigma Opportunities

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	Discussion Forum "I am having trouble defining 'opportunity'. There can be a huge number of potential defects on any individual manufactured product, or is a single bad part = one opportunity?" Opportunity Counting

By Gary Cone

What Is Value Added With Respect To Opportunity Counting?
There are three simple rules:

1. The product or service is changed by the process (automatically excludes test and inspection).

2. The change must be of value to the customer.

3. Right first time (no extra credit for redoing - this distinction is important for things like deburring operations - just because your processing throws a burr doesn't mean you get credit for it).

So let's review. Focusing on what you test and inspect or focusing on what can go wrong drives counterproductive behaviors. Focusing on all value added transformations, at the detail level, provides the best framework for counting opportunities.

Therefore, DPMO should be expressed as -

DPMO = (total defects) / (total value-added transformations) * 10⁶

Where,

defects are the consumption of resources beyond the minimum required to accomplish the work, and value-added transformations are changes to a good or service that moves it toward the expectation of the customer (internal or external)

Previous Page > The Difference Between 'Good' and 'Bad' Opportunites

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