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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 1.5 standard deviations is normal variation. So 6 Sigma is calculated using 4.5 standard deviations in the normal distribution (6-1.5=4.5). 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(4.5) results in 0.999996602326875, meaning that most of the entire area of the curve is within 6 sigma. From this, we calculate that 3.39767E-06 of the area is outside of 6 sigma to the right by subtracting 1-0.999996602326875. If we multiply this number by 1,000,000, we get defects per million opportunities (DPMO) of about 3.4. We now can calculate the DPMO for any value of Sigma.
Part 1. Divide your age by 100 and add to 4. For example, my age is 56/100=.56+4=4.56. Assume that this is the sigma associated with a supply chain process (e.g., delivery of undamaged goods to the customer). Then calculate the DPMO associated with this value. Post your Excel formula. Example
=(1-NORMSDIST(4.56-1.5))*1000000
1106.685 or about 1107 defects per million opportunities.

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