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Supply Chain Metric .com
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Supply Chain Metric .com
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Setting Goals Reference Link to this website
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DPMO: Defects Per Million Opportunities DPMO is a Six Sigma* calculation used to
indicate
the amount of defects in a process per one million opportunities.
The challenge here is determining exactly what qualifies as a defect. Some defects can pass through a quality inspection and have little impact on the end product. Other defects can result in re-work or scrap. DPMO is sometimes used instead of Defect per Unit to allow for comparison between processes with different levels of complexity. *Six Sigma uses statistical analysis to measure a companies performance by identifying defects in a manufacturing process. The goal of Six Sigma is to reduce process output variation to + or - three standard deviations. This results in no more than 3.4 defects per million opportunities.
Our goal is to guide companies that are
looking to optimize their Supply Chain. Unfortunately, we do not currently have
the resources to answer individual questions. |
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For information on Inventory
Turns, Fill Rate Measurement, Backorder Reporting or any other Supply Chain
Metric, click on the links to the left. The text that appears on this
website is the opinion of the webmaster. Metrics may or may not be uniform
across all industries. All data listed here may be used as a general guide, but
it's accuracy is not guaranteed. Please consult a qualified Supply Chain
professional for more details on Supply Chain Measurements.
Other Supply Chain Websites
VendorManagedInventory.com - information on
Vendor Managed Inventory other...
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