Question: Please answer this Six Sigma Supply chain management logistics Question WILL GIVE THUMBS UP! Part 1. Divide your age by 100 and add to 4.

Please answer this Six Sigma Supply chain management logistics Question WILL GIVE THUMBS UP!

Part 1. Divide your age by 100 and add to 4. For example, my age is 56 / 100 = .56 + 4 = 4.56. Assume that this is the sigma associated with a process. Then calculate the DPMO associated with this value. Post your Excel formula. Example

=(1-NORMSDIST(4.56-1.5))*1000000

1106.685 or about 1107 defects per million opportunities.

Part 2.Now that you are armed with this information, assume that a business ships 100,000 packages. Assume that the number of shipping errors is your own age in years * 5. (For example, I am 56, so the number of errors would be 280). The yield is defined as (opportunities - defects) / opportunities x 100%. For example: =(100000-280)/100000 which equals .9972 or 99.72% yield. Calculate the yield based on the 100,000 packages and your own age in years * 5.

Part 3.From the yield, we can derive the sigma of the process by the following formula: =normsinv(yield) + 1.5. This adds back in the normal variation (or common cause variation) of 1.5 standard deviations. In the example above:

=NORMSINV(.9972)+1.5 = 4.27 Sigma. Calculate the Sigma of the process in #2.

Part 4. Finally, verify that your Sigma calculated in step 3 is correct by calculating the DPMO and then the defects per the 100,000 packages. If you have done this right, you should end up with the number of defects in step 2.

How? In my example, I just use =(1-NORMSDIST(4.27-1.5))*1000000 = 2,800. So if there are 2,800 DPMO, then there are 280 defects per 100,000 opportunities as specified in 2.

Part 5. How might business use 6 Sigma to improve their processes

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