How to calculate Six Sigma?

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Six Sigma was invented to improve the
manufacturing processes and it aims to improve
the process output through various techniques
which involve removal of errors and reduction of
variable quotient in business and manufacturing
processes. Six Sigma levels represent the
reliability of the process, higher Six Sigma
means the process is reliable and working in
good condition. Let us assume if Six Sigma level
one means 61 of the parts produced or service
rendered by the process are defective, which
further means only .00034 percent of the parts
are defective. Six Sigma is calculated by the
number of defects per million opportunities
(DPMO). The sigma level provides the metrics to
understand the capability of the process or an
organization to meet the customer requirements.
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• When DPMO is calculated?
• DPMO is calculated in the measure phase of the
  DMAIC Process, DMAIC Define, Measure, Analyze,
  Improve, and Control. It refers to a data-driven
  quality strategy for improving processes.
• DPMO may be used throughout the DMAIC process as
  per the questions raised.
• It is calculated to improve the Six Sigma phase.
• How to calculate DPMO?
• DPMO can be calculated by gathering the
  information. First we have to collect the data
  for the number of units produced, the number of
  defect opportunities per unit and the number of
  defects. The below mentioned formula to calculate
  the number of defects in the process per million
  opportunities
• DPMO is number of Defects x 1,000,000((Number of
  Defect Opportunities/Unit) x Number of Units)
• Let's brief it through the example of Laptop
  manufacturer who wants to calculate the Six
  Sigma of its manufacturing process. For two
  months, the manufacturer makes 83,934 laptops
  and during the test phase, 3,432 laptops were
  rejected.

From the above mentioned formula, we get defects
3432 Opportunities 83934 Defect
Opportunities per unit 9 DPMO 5111.158768 You
can use the Six Sigma table below to find out
the level for respective DPMO value Six Sigma
Level DPMO 1 690,000 2 308,000 3 66,800 4 6,210
5 320 6 3.4 For the example given above, DPMO of
5,111 is less than 6,210 and greater than 320.
Hence, it results in a Six Sigma level four
designation. Six Sigma calculations are all about
statistical analysis and report generation
through which anyone can understand the process
flaws and requirements. Through the
above-mentioned examples, you can calculate Six
Sigma to a wider level..
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