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Sigma level and DPMO

DPMO (Defects Per Million Opportunities) is the standard metric for Six Sigma process capability. It counts defects relative to the total number of chances for a defect to occur.

DPO = defects / (units × opportunities per unit) DPMO = DPO × 1,000,000

The sigma level corresponding to a DPMO uses the standard normal distribution plus a 1.5σ shift that accounts for long-term process drift (the “Motorola shift”). At 6σ: DPMO = 3.4.

Worked example

A call centre handles 5,000 calls. Inspectors find 200 calls with one or more errors. Each call has 1 opportunity for an error.

DPO = 200 / 5000 = 0.0400 DPMO = 0.04 × 1000000 = 40000 Sigma level (with 1.5σ shift): From DPMO, find z such that Φ(z) = 1 − DPO = 1 − 0.04 = 0.96 z = Φ⁻¹(0.96) ≈ 1.75 Sigma level = z + 1.5 = 1.75 + 1.5 = 3.25 σ

DPMO benchmarks

Sigma levelDPMOYield
3σ66,80793.32 %
4σ6,21099.38 %
5σ23399.977 %
6σ3.499.99966 %

Multiple opportunities per unit

Example: 100 invoices inspected, 8 defects found, 5 opportunities per invoice.

DPO = 8 / (100 × 5) = 8 / 500 = 0.016 DPMO = 0.016 × 1000000 = 16000

Working from a measured characteristic instead of counted defects? The free process capability calculator turns spec limits, mean and σ into Cpk, Ppk and expected PPM.

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