The calculation of a Sigma level, is based on the number of defects per million opportunities (DPMO).

In order to calculate the DPMO, three distinct pieces of information are required:

a) The number of units produced

b) The number of defect opportunities per unit

c) The number of defects

The actual formula is:

DPMO = (Number of Defects X 1,000,000)/ ((Number of Defect Opportunities/Unit) x Number of Units)

Question

Six Sigma

Given:

Number of defects = 12 

Number of units = 10

Number of opportunities per unit = 60

Manually calculate DPMO. Show all of your work.

Determine Sigma level of performance.