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DPU Question

Six Sigma – iSixSigma Forums Old Forums Finance DPU Question

This topic contains 1 reply, has 2 voices, and was last updated by  Steve SVK 11 years, 10 months ago.

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  • #24694

    annon
    Participant

    I have a product line that produces discreet, tangible products, but they differ in defect opportunties (ie different models, sizes, etc).  I wanted to use DPU at each work cell to capture internal defect levels.  At the end of the line I would like to take the collective DPU and roll it up into the RTY.   Here is the rub….
    In an effort to make the DPU more representative of the COPQ, I want to turn it into a weighted measure.  There are 3 categories of defects that differ greatly in their cost of rework  (using an ABC acct method), and I want to reflect that cost differential in the DPU at each cell, then unroll it at the end for the DPU calculation. For example:

    Defect Type A =  100 pts
    Defect Type B =  50 pts
    Defect Type C =  25 pts
    Now simply multiply the number of defects in each category by their weights, sum them, divide through the total number of units, then Pareto them out and start knocking down the big bars. And then just use the normal DPU format for the RTY.  Brillant! Or  not?  Any problem with this approach? 
    Thanks! 
     

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    #59232

    Steve SVK
    Member

    ….”Now simply multiply the number of defects in each category by their weights, sum them, divide through the total number of units”divide through the total sum of weights, not through the total number of units.

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