A simple task to get you to consider the cost of poor quality. See the table below (DPMO for each Sigma Level is already included). This follows from the lecture material.

• 2019 Amazon sales were estimated to be 215 millions items across the "Turkey 5" between Thanksgiving and Cyber Monday in 2019. . This is nearly a 20% increase over the 2018 figure, where Amazon sold over 180 million items.
• Assuming a reasonable cost of $33 per defect -

  This would include return shipping, labor to answer phones/emails, additional labor to right a wrong order, labor to process the returned item back at the warehouse.

• Using 2019 figures, fill in the table below, with respect to total number of defects at each Sigma Level and total cost to Amazon if they operated at that respective Sigma Level. You will then enter your results in the following questions.
• Finally, can you find any information that would help you estimate what Sigma Level you think Amazon is operating at.
• The final row of the table has been filled out to give you a start.

When you enter numbers in the blanks, make sure to round to the nearest dollar. Do not use decimal places. Do not use the $ sign. See example in the table below.

Sigma Level	DPMO	Estimated Turkey 5 Defects	Total Cost (at $33 per error)
One	691,000
Two	309,000
Three	67,000
Four	6,200
Five	230
Six	3.4	731	24,123