Presentation Description: Lean Six Sigma (LSS) professionals understand that Defects Per Million Opportunities (DPMO) and Process Capability (Cpk) are fundamental metrics for communicating the power of LSS process improvement. In this presentation, I will demonstrate: 1) how to develop a clear and specific problem statement from a vague improvement goal; 2) how to identity a metric to determine the baseline performance of the process; 3) how to calculate the DPMO and Cpk for the process; and 4) how to use the metrics to calculate the financial gains. I will use projects from several different industries – including traditional product manufacturing, pharmaceutical manufacturing, healthcare, education, government, finance, and other support services – to demonstrate these steps. At the conclusion of this presentation, the attendees should understand how to calculate DPMO and Cpk for any type of process and how to use these metrics to determine the financial benefits created by the project.
Attendees will understand how to develop a clear and specific problem statement from a vague improvement goal
Attendees will understand how to identity a metric to determine the baseline performance of a process
Attendees will understand how to calculate the DPMO and Cpk for a process
Attendees will understand how to use the DPMO and Cpk to calculate the process improvement savings or cost avoidance