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A production line manufactures basic electronic parts. If an electronic part does not work, it will be considered as one defect and scrapped. A simple random sample of 18,000 parts is tested to assess the production line. Forty five defects were found. In answering the following questions, you would need to use the specified number of decimal places. In addition, to calculate the sigma level, you can use Excel by typing in =Norm.S.INV(1-DPU)+1.5 where DPU is the value you get earlier. And, to calculate the number of expected defects, you need to rely on the lookup table below.
(a) What is the DPU of the production line? (use 7 decimal places if applicable)
(b) What is the corresponding DPMO? (use 1 decimal place if applicable)
(c) What is the sigma level? (use 2 decimal places)
(d) For a sigma level of 5.0, what would be the number of defects? (Use 2 decimal places)
Sigma Level
2.0
3.0
4.0
5.0
6.0
DPMO
308,537.5
66,807.2
6,209.7
232.6
3.4
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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