The calculation of a sigma level

Assignment Help Accounting Basics
Reference no: EM13979479

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.

Reference no: EM13979479

Questions Cloud

Farming tractor-manufacturing business : Echo Corporation is into farming tractor-manufacturing business. At the end of year 1, their retained earnings are $250, and cash is $100. In year 2, Echo makes a net loss of $30.
Berndt depreciation expenses : Suppose Congress changed the tax laws so that Berndt's depreciation expenses doubled. No changes in operations occurred. What would happen to reported profit and to net cash flow?
Was the purpose of the audit to exert cybernetic control : Do you think this was a financial audit, a project audit, or a management audit? Why?
Is image erect or inverted with respect to original object : Where is the image? Enter your answer as two numbers separated with a comma. Is the image real or virtual?
The calculation of a sigma level : The calculation of a Sigma level, is based on the number of defects per million opportunities (DPMO).
Tradeoff of risk and reward : Provide rationale to justify your choices. Also, discuss the tradeoff of risk and reward between your two investments.
What deferred taxes are, how they come about, : What deferred taxes are, how they come about, and how they are reported?
The way of electronic funds transfers and payment : Twenty years ago there was little in the way of electronic funds transfers and payments.  Discuss the impact of things like just-in-time inventory systems and point of sales systems on the need for cash.  For instance, look at the days payable, days ..
What would be the predicted score for a person : The formula for a regression equation is Y' = 2X + 9. What would be the predicted score for a person scoring 6 on X? If someone's predicted score was 14, what was this person's score on X

Reviews

Write a Review

Accounting Basics Questions & Answers

  Savrocca accountant for shine king cleaning is attempting

savrocca accountant for shine king cleaning is attempting to reconcile the monthly bank account.nbsp savrocca has the

  Prepare the journal entries to record the transactions

Lets go a bit further with the example from M8-3. Assume that on February 2, 2015, Extreme Fitness received a payment of $ 500 from one of the customers whose balance had been written off. Prepare the journal entries to record this transaction.

  A 230 credit to office equipment was credited to fees

a 230 credit to office equipment was credited to fees earned by mistake. by what amounts are the accounts under- or

  Which of the following is not a difference between

which of the following is not a difference between financial accounting and managerial accounting?financial accounting

  What is the product mix the number of units of z300 q650

wolverine engineering makes two types of grinding tools. z300 is a regular grinding tool and q650 is a precision tool.

  On january 1 year xxx1 holmes co borrowed cash from legacy

on january 1 year xxx1 holmes co. borrowed cash from legacy bank by issuing an 80000 face value three-year term note

  What is the goal of conducting a systems review

What is the goal of conducting a systems review? What factors need to be considered during systems review?

  What information is not provided that could assist

What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making?

  Analyzes a company that has been indicted for fraud

Create a research report that identifies and analyzes a company that has been indicted for fraud. The report also will evaluate the auditor's role in relation to the fraud.

  Discussion board area

Primary Task Response: Within the Discussion Board area, write 300-400 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and..

  Reliable enterprises sells distressed merchandise on

reliable enterprises sells distressed merchandise on extended credit terms. collections on these sales are not

  A company must decide between scrapping or reworking units

a company must decide between scrapping or reworking units that do not pass inspection. the company has 15000 defective

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd