Answer:
The answer is explained below
Step-by-step explanation:
STEP 1
Out of 1500 units produced by a company 1,477 are found to be free of a particular type of defect. One needs to rate the performance based on Six Sigma Theory.
STEP 2
Manager can define the performance of a product using defects per million units DPMO metric
DPMO can be find by using
DPMO = Total number of defects in a sample/ No. of opportunities of per error per unit x No. of units * 1,000,000
= 1500 - 1477/ 1 x 1500* 1,000,000
= 23/1500
= 15,333,33
The defect rate of the process can be find by
Defect rate = No. of defects/ No. of units * 100
= 1500 - 1477/1500 * 100
= 23/1500 * 100
= 1.53%
Six Sigma theory focuses on achieving 3.4 defects per million for a certain period of time. However in this, performance of the process is not as good as stated by the manager.