Six Sigma: Metrics

A project involves improving the performance of buses in meeting their schedule. Data shows that out of 500 scheduled stops. 13 were over 30 minutes late. What is the DPU for the scheduled bus stops?

0.026

At a pharmaceutical supplies company, a total of 130 defects were observed on an inspection of 1,000 units being shipped to a specific retailer. What is the DPU for the orders?

0.13

An insurance company has a three-part claim settlement process with the following FTYs for each step in the process: 994, .978, and 923. What is the TY for the claim settlement process?

89.7%

In a study, an airline discovered that of the 1,000 pieces of luggage handled in an hour. 991 reached their destinations. The other nine were lost or misdirected. What is the FTY for the luggage?

99.1%

The billing department of a medical supplier is preparing to conduct a DPMO calculation of its invoicing processes. Which options are examples of defect opportunities?

A long-form invoice must fulfill 12 key requirements before it can be submitted to a business client for payment There are eight separate fields in the short-form invoices that need to be filled with complete and correct billing information

Which Six Sigma performance metrics are based on counting defects or nonconformities?

Defects per unit Rolled throughput yield First time yield Defects per million opportunities

What does it mean to say that an organization has achieved a "Six Sigma" level of quality?

Number of defects is below 3.4 per million opportunities

How is cycle time used as an indicator of process performance in Six Sigma?

Partial indicator of product time to market Measurement of how long it takes to complete an individual task

Match each type of cost of poor quality to the appropriate example.

Prevention cost Specialized training Quality education and training Appraisal cost Testing of components inspection of a new process External failure cost Product recalls Returned products Hidden costs High employee turnover Loss of reputation Internal failure cost Rework Scrap

What is the purpose of metrics in Six Sigma?

Provide a standard for measuring process performance Help to identify defects and define problems

A hospital study of recent blood test records finds that of 200 blood specimens, 189 were drawn properly. Assuming the blood specimen collection process is a single operation, what is its FTY?

.945

A hotel has a three-part checkout procedure, with the following FTYS: Guest receives bill: 999 Guest pays invoice: 982 Guest is given receipt: 997 What is the RTY of this checkout process?

0.978

For staff producing drain caps, a shift is eight hours, including one hour for breaks and lunch. Demand can be met by completing 70 units per shift. How many minutes is the takt time for the process?

6

A power generation firm finds four defects in an inspection of 35 turbines. For this purpose, the purchase manager sets 18 checkpoints for each turbine purchased. What is the DPMO for this dataset?

6349.206

A circuit board maker produces 1,000 boards a week. The QC department finds an average of 48 defects a week. Each board consists of 65 opportunities of failure. What is the DPMO based on this dataset?

738.462

Which performance metrics are examples of the cost of poor quality?

Costs related to process inefficiency or poor scope Activities or processes that don't meet expected outcomes Costs incurred when output doesn't meet customer expectations Difference between actual cost and minimum cost of a product or process

Match each characteristic to the corresponding approach to performance measurement. More than one characteristic will match to each approach.

Counting defects Works with discrete data Examines conformity of process outputs Used to calculate DPU or DPMO Measuring variability Compares process variability or standard deviation to specification limits Used for continuous data that has normal distribution

How can the COPQ be used as a performance metric in Six Sigma projects?

Gather criteria for selecting future Six Sigma projects As a baseline for improvement efforts Help create the proiect charter Track benefits throughout the project

What is the role of cycle time as a performance metric in Six Sigma?

If you can reduce cycle time, you can reduce waste and overall time to market Measuring cycle time enables you to determine your overall lead time Cycle time is a direct measure of productivity

Why is it important to use cycle time as a metric for measuring process performance?

It is a direct measure of productivity, which impacts competitiveness in the market If you can reduce cycle time, you'll decrease product time to market A reduction in cycle time enables you to increase return on assets and improve revenues

A computer manufacturer has a goal of Six Sigma quality. The company is performing a DPMO calculation for a new type of circuit board. Which options are examples of defect opportunities?

Measurements of three dielectrics and conductors are taken to ensure the boards are meeting specifications within 2% tolerance A circuit board must undergo three separate tests to pass inspection There are 12 IPC laminates with very precise thickness requirements

Match each characteristic to the performance measurement approach it describes. More than one characteristic will match to each approach.

Measuring process variability Uses information on the mean and standard deviation Used for continuous data that has normal distribution Counting defects Used to calculate DPU or DPMO Works with any type of data Examines conformity of process outputs

Why is it necessary to have metrics when conducting a Six Sigma project?

They are the target values against which you measure performance They help you determine your Sigma level and therefore, quality level

What will calculating DPU during the project's Define stage help the team do?

Understand the current situation or state of the process Evaluate current processes Identify nonconformance Identifv useful future improvement activities