From the course: Six Sigma: Green Belt
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Process performance measures
- As the lead management expert, Peter Drucker said. "If you can't measure it, you can't improve it." This is very true for Six Sigma projects. So let's talk about some commonly used process performance metrics. They are DPU, defects per unit. DPO, defects per opportunity. DPMO, defects per million opportunities. RTY, rolled throughput yield. COQ, cost of quality. And COPQ, cost of poor quality. Let's discuss each of these using an example, say your job is to process and send customer refund checks and three things can go wrong on a refund check, name, address, and amount. We say that there are three opportunities for defects in each refund check, or we have three different opportunities. If an audit of 1000 refund checks found 600 defects then the defects by unit is the total number of defects divided by the total number of units. In this case, DPU is 600 divided by 1000 which gives us 0.6 defects per unit or DPU.…
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