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Average Defect/Error Rate

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  • #24498

    Mario
    Participant

    Can some give me any idea, or point me towards a source regarding the average defect/error rate in financial reporting processes?  thanks
     

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    #58778

    MBB_pune
    Participant

    Mario!
    Average defect/error rate in financial reporting processes can be measured either in DPMO way or in DPU way.
    This judgement depend on criticality of the work. In 90% of finacial processes, it is DPU.
    Regards

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    #58780

    Mario
    Participant

    I appreciate you responding to my email.  My question was regarding information regarding the industry.  e.g. Financial data inputting can be expected to have 1000 DPMO’s.
    Do you know of any source where I can find average defect rates for financial operations like data input, general ledger, etc?
    Thanks again.

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    #58781

    Dr. Eugene Jacquescoley
    Participant

    Mario,Sigma XL 4.21 has the capability to address this issue for you. > you have done your data manipulation, I suggest that a Cause & Effect Matrix. Which may be helpful in your average defect analysis.. If you utilize this fx., make sure you perform a Run Chart.
    Run Charts allow you to see trends and outliers in the data. It is the precursor to control charts, which have calculated control limits. you have done your data manipulation, I suggest that a Cause & Effect Matrix. Which may be helpful in your average defect analysis.. If you utilize this fx., make sure you perform a Run Chart.
    Run Charts allow you to see trends and outliers in the data. It is the precursor to control charts, which have calculated control limits. you have done your data manipulation, I suggest that a Cause & Effect Matrix. Which may be helpful in your average defect analysis.. If you utilize this fx., make sure you perform a Run Chart.
    Run Charts allow you to see trends and outliers in the data. It is the precursor to control charts, which have calculated control limits. E

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    #58782

    Mario
    Participant

    Dr.  Thank you for your response.
    However, my question is not in regards to applying Six Sigma practices but rather general info on the industry.
    My situation is I suspect that the financial reporting processes and resulting DPMO in my company is above the industry norm.  I just want to benchmark my company against average expected values.  Once I know the average I will use that information to compare samples.
    I know what my company average is but I would rather use the industry average as my control limit.
    Thanks
     

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    #58784

    Dr. Eugene Jacquescoley
    Participant

    Ok.

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Viewing 6 posts - 1 through 6 (of 6 total)

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