MCQ
Q.
What is the defect rate for Six sigma?
Correct Answer: D
Concept:
- Six Sigma is a statistical term used to measure the number of defects that processes create.
- The term implies high-quality performance because a process performing at a Six Sigma level allows only 3.4 defects per one million opportunities.
Different sigma levels of quality would lead to the following number of defects.
- Three Sigma quality – This level of performance produces a defect-free product 93.32% of the time. 770 applications would be processed incorrectly and would require rework every day.
- Four Sigma quality – This level of performance yields a defect-free product 99.349% of the time. With four sigma quality, 73 applications would need to be corrected every day.
- Five Sigma quality – Five Sigma performance produces defect-free products and services 99.977% of the time. Every week the bank would need to correct 13 application errors.
- Six Sigma quality – Six Sigma performance produces a defect-free product 99.99966% of the time; allowing only 3.4 errors per one million opportunities. 10 applications would need to be corrected during the entire year.
Important Points:
Four sigma and six sigma levels of performance both have an error free rate over 99% of the time. However, the large volume of applications in this example makes all of the difference. With numbers this big, it turned out that the four-sigma process made 18,710 more errors than the six sigma process.
