Course Project: Submit for Grading

4

The measure phase

Chellyn Jones

Southern New Hampshire University

The measure phase

The process I selected from milestone 1 to 3 is inventory management in Walmart Inc. For the business process I set the process target (Ï), upper specification (U), and lower specification (L) values as follows:

Process target (Ï): 36,000 units

Upper specification (U): 20

Lower specification (L): 5

Additionally from the samples the process mean and the standard deviation are 3 and 10 respectively. I will use these figures to compute the Defectives per Million Opportunities (DPMO), Yield, Process capability ratio (Cp) and Process capability index (Cpk) as follows:

Defectives per Million Opportunities (DPMO)

Defectives per Million Opportunities (DPMO) = Defects per Opportunity (DPO) × 1000,000

Where the Defects per opportunity are computed by:

DPO= D ÷ (O × Ï) (Parekh et al., 2021) where:

D = Overall number of defects

O = Opportunity for defects in each unit

Ï = Process target

The overall number of defects and the opportunity for defects in each of the unit are estimated at 3 and 27 respectively.

DPO= 3 ÷ (27*36,000)

DPO= 3.08642E-06

Therefore,

DPMO= 3.08642E-06 * 1,000,000 = 3.1

DPMO= 3.1

Yield

The formula for the computation of Yield is:

Units passed through the process (Estimated)/Total units input (Hakimi et al., 2018)

The estimation for the units which are passed through the process is 33,000 units and hence the yield will be computed as follows:

Yield= 33,000/36,000= 0.917 or 91.7%

Process capability ratio (Cp)

For the computation of the Cp the formula is

Cp= (Upper specification- lower specification)/ (6*standard deviation)

Cp= (20 – 5)/ (6*3) = 15/18

Cp= 0.83

Process capability index (Cpk)

For the computation of the process capability index (Cpk) the formula is:

Cpk= min [Upper specification − μ/3σ, μ−Lower specification/3σ] (Hakim et al., 2018)

Cpk= (20-10)/ (3*3), (10- 5)/(3*3)

min [1.33, 056]

Process capability index= 0.56

References

Hakimi, S., Zahraee, S. M., & Rohani, J. M. (2018). Application of Six Sigma DMAIC

methodology in plain yogurt production process. International Journal of Lean Six Sigma.

Parekh, V., Jotani, S., & Patel, J. (2021). Application of Six Sigma on RMC Plant. In Advances

in Civil Engineering and Infrastructural Development (pp. 295-301). Springer, Singapore.