Question

Suppose we observe 300 boxes delivered incorrectly to the wrong addresses in a small city during a single day when a total of 100,000 boxes were delivered. What is the DPMO in this situation?

Answer 1

Answer:

DPMO 3,000

Explanation:

Defect per Millon Opportunities

$1000000 \times \frac{sample \: defect}{sample \: size} = \: dpmo$

DPMO = 1,000,000 * 300/100,000 = 3,000

we divide the failure of the sample by the sample side and apply the ratio to 1,000,000 to get an expected failure per millon