The formula to calculate the Defects Per Million Opportunities (DPMO) is:
\[ DPMO = 1000000 \times \frac{D}{U \times O} \]
Where:
DPMO stands for defects per million opportunities. In manufacturing, it’s a measure of how many defects would occur in a lot of goods with 1 million opportunities. It’s important to understand that it’s 1 million opportunities and not 1 million units, although they could be equal. This is because units often have more than one point of failure or opportunity for failure.
Let's assume the following values:
Using the formula to calculate the DPMO:
\[ DPMO = 1000000 \times \frac{50}{1000 \times 10} = 5000 \]
The DPMO is 5000.