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Six Sigma assumes that 1 . 5 standard deviations is normal variation. So 6 Sigma is calculated using 4 . 5 standard deviations in the
Six Sigma assumes that standard deviations is normal variation. So Sigma is calculated using standard deviations in the normal distribution It also uses the upper tail of the distribution. Knowing this information allows us to manually calculate defects per million opportunities DPMO an important statistic that indicates how a business process is performing! In Excel, normsdist looks up values in the normal probability distribution, a distribution we will discuss later in the course but one with which you should have some familiarity. normsdist results in meaning that most of the entire area of the curve is within sigma. From this, we calculate that E of the area is outside of sigma to the right by subtracting If we multiply this number by we get defects per million opportunities DPMO of about We now can calculate the DPMO for any value of Sigma.
Part Divide your age by and add to For example, my age is Assume that this is the sigma associated with a supply chain process eg delivery of undamaged goods to the customer Then calculate the DPMO associated with this value. Post your Excel formula. Example
NORMSDIST
or about defects per million opportunities.
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