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Calculation of DPMO

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  • #67584

    Ken K.
    Participant

    Ultimately you’ll be calculating DPMO by dividing the total number of defects by the total number of opportunities (for a defect), and then multiplying by 1,000,000.
    The toughest task is to assess your process(es) and determine the number of opportunities for defects per unit of work (OPU) (for us it is per product). You need to honest and realistic. Consider the potential places in your process where a defect can occur, but don’t start adding all the different kinds of defects.
    For an electronic PC board we tend to use Opps = # of parts + # of electrical connections. For completion of forms, you might count the number of fields to be filled out (don’t worry about all the different ways a field could be filled in wrong). It might be the number of steps taken to complete the task.
    Now, start tracking the number of defects per unit, or start summing up the total number of defects and track the total number of uits. To calculate an average defects per unit (DPU) you can just divide the total number of defects by the total number of units.
    DPMO = 1,000,000*DPU/OPU
                 = 1,000,000*Total Defects / (Total Units *OPU)

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    #27521

    Nita Mital
    Participant

    Hello,How do I calculate DPMO based on performance.
    The target of my project is to reduce effort spent and increase performance. How do I go about calculating the DPU and the DPMO based on performance?Regards,
    Nita

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    #67579

    Shirish
    Member

    In my openion, first you need to quantify the ‘efforts spent’. For the existing process, you may collect the data on efforts spent and rank them based on the input. Then fix the specificantion limits.
    Best of Luck.
    Shirish
     

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    #67580

    Nita Mital
    Participant

    For ex suppose the effort taken for 20 reports for a month is 100 hrs and we want to reduce it to 80 hrs.How do i calculate the DPMO in such a situation

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    #67582

    Hartshorn
    Participant

    You are going to have to list the tasks and efforts needed to write the reports.  Any delays or rework are going to be your defects.  I would think that gathering the data for the report would provide several opportunities for defects (missing data, late data, inaccurate data…).

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    #67601

    Praneet
    Participant

    Hi Nita
    Lets revisit the basics first. In order to calculate the DPMO we need to do two things first (a) measure the number of defects & (b) we need to identify the number of opportunities
    In so far as your project is concerned what you need to do is to clearly define what a defect is. Having done this what you need to do next is identify one unit of work and the number of opportunities for error in that one unit of work. Once you have done this you measure your process / product and track the number of defects and divide this by the Total Number of Opportunites (# of Opportunities x Number of Units of Work) Multiplied by 1 Million.
    I know that what I just elimentary and would need some amount of customisation in so far as your project is concerned. Would be glad ot help you out in case you need more clarifications
    Cheers

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    #67606

    Ghis
    Participant

    Instead i would use the yield as a metric for this process. DPMO is not really the good metric in that kind of project/objectives You need to know what  your customer wants!! reduce it to 80 hrs on average or 80 becomes the upper spec? Once you’ll know, assess your process and put the upper spec limit. Everything that is beyond the usl are defects. You’ll then be able to conduct some statistical analysis and determine what proportion is over a specific value.

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