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DPMO
DPMO
When a process or
characteristic doesn’t perform within its specifications, it produces a noncompliant condition,
called a defect. If your yield is 90 percent, you naturally must have 10 percent defects.
To bridge these diverse disciplines, in Six Sigma you call the thing you’re working on a unit. A
unit may be a discretely manufactured product or an invoice that crosses your desk. Whatever it
is you do, in Six Sigma it’s called a unit.
For example, if you process 23 loan applications during a month and find 11 defects —
misspelled names, missing prior residence information, incorrect loan amounts — the DPU for
your loan application process is
That means that for every two loans that leave your desk, you expect to see about one defect.
Defects per opportunity (DPO) and per million opportunities
(DPMO)
A DPU of 0.478 for an automobile is viewed very differently than the same per-unit defect rate
on a bicycle. That’s because the automobile, with all its thousands of parts, dimensions, and
integrated systems, has many more opportunities for defects than the bicycle has. A DPU of
0.478 on an automobile is evidence of a much lower defect rate than the same DPU on a simpler
product.
The key is in transforming the defect rate into terms that are common to any unit, whatever it is
or however complex it may be.
The number of opportunities inherent to a unit, whatever that unit may be, is a direct measure of
its complexity. In fact, when you want to know how complex a unit is, you count or estimate
how many opportunities for success or failure exist. Sometimes, opportunities are individual
characteristics that are critical to the system’s performance. Other opportunities are
characteristics that have a specification.
With a calculated DPO measurement, you can now fairly compare how capable an automobile is
to how capable a bicycle is. For example, you may observe 158 out-of-specification
characteristics on an automobile. After some study, you also determine that the number of
opportunities for success or failure within that automobile is 14,550. Its DPO is then
For a bicycle, on the other hand, you may find only two non-compliant characteristics among its
173 critical characteristics. So its DPO is
Even though an automobile and a bicycle are two very different items with very different levels
of complexity, the DPO calculations tell you that they both have about the same real defect rate.
But you observe more defects on the automobile, because that item has many more opportunities
for defects.
A simple way to solve both of these problems is to count the number of defects over a larger
number of opportunities. For example, how many defects occur over a set of one million
opportunities? This defect rate measurement is called defects per million opportunities and is
used very frequently in Six Sigma. In fact, Six Sigma is famous for its defect rate goal of 3.4
defects per million opportunities.
When a process is repeated over and over again many times — like an automobile assembly
process, an Internet order process, or a hospital check-in process — DPMO becomes a
convenient way to measure capability. When calculating DPMO, you don’t want to actually
measure the defects over a million opportunities. That would take way too long. Instead, the way
you calculate DPMO is by using DPO as an estimate, like this:
DPMO = DPO × 1,000,000
This setup also means you can track backward, going from DPMO to DPO: