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Martin,
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Category: Homework

Satisfied Customers: 765

Experience: 20+ years of research, engineering and teaching

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Your boss wants to know the limits of expected variation.

Customer Question

Objective: We want you to determine baseline sigma for both the current defect level and the new target defect level. (approximate is okay) You will need to refer to the tab below entitled "The Project" for this deliverable. Instructions for you: Calculate baseline sigma. Sigma Levels 6 sigma 3.4 dissatisfied customer experiences per million (DPMO) 5 sigma 233 DPMO 4 sigma 6,210 DPMO 3 sigma 66,807 DPMO 2 sigma 308,538 DPMO 1 sigma 691,462 DPMO Lovell Levelers, Inc. is a major provider of specialized parts for the automotive industry. LLI’s biggest customer, Specific Motors was not a delighted customer this month. In fact, last Monday, the executive vice president of Specific Motors headquarters, Phyllis Kendall was diverted from a return trip from Singapore to drop in unexpectedly at the LLI plant. There was nothing routine about this visit. She made it explicitly clear that Specific Motors was disappointed with the level of quality relative to the leveler plates. In particular, she was disappointed with the current average of rejects at the rate of 1,350 defects per million opportunities (DPMO) at a cost of poor quality of just over $256,000 per quarter. She said the industry standard is less than 50 DPMO and if we do not get the level of quality to the industry standard (as a minimum) within the next six months, LLI should not expect to keep the business next year.

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You have received partial credit for the assignment.

Please recalculate the means, std dev and the resulting expected variation.

this is what I got back from my teacher. Thank you. I don't mind giving a bonus but i need to make sure it is correct for my project. I have more for you to. Thanks again.

I've reviewed the work, and found that the means, standard deviations, and +/- 3 sigma points are indeed correct in the Word document that I provided. If possible, please ask your instructor for clarification on this. Here is the Excel file I used to generate these numbers --> Excel file.

I appreciate you letting me know about this. I want to understand the issues and do the best possible for you. And of course I'd be very happy to answer more questions if you have any. Thanks!

The answers are correct to the number of decimals in the input data. Using more digits is easy enough (Format --> Cell --> Number --> Decimal Places), but the extra digits are really meaningless in light of the limited precision of the input data.

It is true that Excel displays some number of digits for each cell, while storing it with high precision (about 12-15 digits). Subsequent calculations involving a cell use its stored, high precision value.

Martin for some reason everytime I try to do another question $80 keeps coming up. I don't click on the 80 it says $40 if satisified and I do not check the $80 block but it shows up as that. Can you help?

Customer:replied 1 year ago.

Are you using ALL of the available digits during the calculations (format to at least 8 decimal places) and rounding only when reporting the results

This is what my instructor sent back. I tried it but came up with same answer do you understand what he is saying Martin?

OK, here is the same spreadsheet, but with the answers calculated to many more digits. You can see that the original answers are correct to the level of precision of the input data. This should satisfy your crazed instructor. :)

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