question archive A company is currently at the 3 sigma level
A company is currently at the 3 sigma level
Subject:AccountingPrice: Bought3
A company is currently at the 3 sigma level. It is currently processing 50 orders per day. Each order can have two types of errors. If an error occurs, it would cost the company rs. 200 to rectify it. The company is planning to adopt 6 sigma practice and hopes to achieve the 4 sigma level by the end of the year. Estimate the saving per month if they are able to achieve their target. Assume 30 days per month.
below you are given the DDPMOs fo 3 and 4 sigma levels of performance.
| sigma level | DPMO | |
| 3 sigma | 66800 | |
| 4 sigma | 6200 |
