Calculating Six Sigma

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    Sanjay Joshi

    I was in a fix when i was building a prototype for displaying sigma level of a company. My problem was that in order to calculate Six Sigma i needed to have the opportunities of defects in the product.
    From this then i had to ask my client to analyse the defective product for the defects that the product had out of the opportunities that were listed earlier in the above paragraph.
    After this i would have been in a position to calculate the DPMO. This sounds like the client has to spend lot of time in finding out the no of ways in which the product failed.
    Can anyone throw some light on calculating the sigma level for this company??


    Mr IAM

    I would not even go about this.Β  I would suggest you focus on Defects Per Unit.Β  And not worry about the number of opportunities per unit.Β  I don’t think it’s worth the effort to get DPMO for every product.
    I would suggest either DPU.Β  Or I would suggest you look simply at the number of product failures / number of units sold.
    See what some others have to say but my opinion is calculating the sigma level of an organization is a waste of time.Β  How does calculating the sigma level add value to the organization?
    Cheers! M


    Anshul Karoliwal

    What is the purpose of calculating sigma level of an organization? Instead try to identify the process, improving which, you can reduce defectives.



    Have to agree with the other two responses…what is the use.Β  Furthuremore….sounds like you are just calculating the sigma of one of their processes.Β  There are many processes, and many Ys in the company.Β  You might want to start at identifying core processes…putting metrics around those cores..and possibly calculating a sigma at a high level……


    Brian E V

    calculate in six sigma for an organization can be usefull I’m working in a international company with factories in six countries, the process is defined from central R&D – to analysis where we need to uptimize and where weΒ don’t have to go I calculateΒ a Cpk on a number of parameter critical to quality orΒ critical to process.
    Brian E VΒ 



    As opposed to what the others have mentioned, I can see value in knowing the sigma level of an organization.
    – what can be measured can be improved –
    Although, from that perspective you should either focus on one specific defect that you suspect may have an issue, or take a higher broader viewpoint and consider each unit as an opportunity and if it is rejected/defective, count it as such no matter what type of defect it has.Hope that helps.



    Hi Sanjay,
    To find the sigma level you can just use the excel formulas.
    If the data is of continuous type, then first find the the observation that are out of the limits by the formula (1- normdist(X=target, mean, stdev,1)). Let this value be A
    then to find the sigma level use 1.5-norminv(A,0,1)
    If the data is discrete, you can directly find the sigma levels using norminv(A,0,1).
    Here A is the proportion defective = defect/tota
    I think in your case this will go.
    Thanks & Best Regards


    Sandeep Nangrani

    This is Sandeep Nangrani. I’m with TCS, Kolkata as a Business Analyst in their Life Insurance domain. Aaj achanak hi Jodhpur days ki yaad aayi and searched ur name on google but cudnt find your E mail. Thot of contacting you this way. If yu are the same Anshul from MBM, do revert back. .. Sandeep.

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