In Article 16, we discussed the concept of Operational Definition. Now, it's time to explore the practical application of Operational Definitions in this article. This installment will delve into crucial elements including Unit, Opportunity, Target, Specification Limits, Defect/Defective, and DPU/DPMO.
Unit:Â A Unit is a measurable and observable output of your business process. It is the number of parts, sub-assemblies, assemblies, or systems inspected or tested.
Opportunity: An Opportunity is the total number of chances per unit to have a defect. It is a characteristic you inspect or test. The total count of opportunities indicates the complexity of a product or service.
Defect:Â A Defect is a characteristic of the Unit that does not meet the customer requirements.
Defective: A Defective is a unit with one or more defects.
DPU – Defects Per Unit – Always greater than or equal to Zero
DPMO – Defects Per Million Opportunities – value between Zero and One.
DPMOÂ Â = (Total Defects * 1,000,000) / Total Opportunities
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Please refer to the example below to gain a clear understanding of all the terms mentioned above:
Example: 10 transactions were audited on a program today. Each transaction is audited on 5 parameters. The chart below shows the score on each parameter and the overall score. The pass score for each parameter and the call is 85%.
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Having explored the practical application of Operational Definitions, I invite you to delve further into our continuous journey. Join us in the next article where our focus shifts to Data Collection in the Measure Phase. This crucial stage involves gathering relevant data to quantitatively assess and measure the performance of processes. We will delve into the methodologies, tools, and considerations associated with effective data collection.
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