41. Six Sigma Process 2- 3.4 DPMO 67,000 DPMO cost = 25% of sales DEFINE CONTROL IMPROVE ANALYZE MEASURE
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60. Measuring Product Yield and Productivity 2- Yield=(total input)(% good units) + (total input)(1-%good units)(% reworked) or Y=(I)(%G)+(I)(1-%G)(%R) where I = initial quantity started in production %G = percentage of good units produced %R = percentage of defective units that are successfully reworked
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62. Computing Product Cost per Unit 2- Product Cost where: K d = direct manufacturing cost per unit I = input K r = rework cost per unit R = reworked units Y = yield
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64. Computing Product Yield for Multistage Processes 2- Y = ( I )(% g 1 )(% g 2 ) … (% g n ) where: I = input of items to the production process that will result in finished products g i = good-quality, work-in-process products at stage i
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69. Quality Productivity Ratio 2- Case 2: Reduce direct cost to $26 and rework cost to $10 QPR = 80 + 10 100 * $26 + 10 * $10 (100) = 3.33 QPR = 95 + 2.5 100 * $30 + 2.5 * $12 (100) = 3.22 Case 3: Increase %G to 95% QPR = 95 + 2.5 100 * $26 + 2.5 * $10 (100) = 3.71 Case 4: Decrease costs and increase %G