How is the DPMO calculated?

The metric DPMO, or Defects Per Million Opportunities, is calculated by taking the total number of defects and dividing it by the total opportunities for error, then adjusting for a scale of one million. The accepted formula used in Six Sigma and quality management is:

DPMO = (Number of defects / (Number of opportunities for error)) * 1,000,000.

In specific environments like Six Sigma, the formula sometimes assumes a standard of three defects per million opportunities, leading to the adjustment by dividing by three in certain calculations. This approach provides insight into the process performance and variability in relation to established goals.

The correct calculation utilizes the total number of defects against the opportunities for error in a way that reflects the likelihood of defects occurring in a standardized environment. Therefore, the option presented correctly embodies this calculation method by incorporating the critical component of opportunities for error adjusted by the multiplication factor to reach a million scale, accurately reflecting process capability and defect prevalence.

This depth of understanding is essential, as it underpins performance measurement in quality management procedures and aids organizations in identifying areas for improvement within their supply chain operations.