Question

A finance department wants to calculate the performance of its billing department. They have reviewed 200 outgoing bills and found that 8 of that have some types of defects. Calculate the Sigma Performance of this process using Z Score and comment on the result 2. A pharmaceutical manufacturing manager in charge of producing a life saving drug needs the manufacturing line to perform at 6 Sigma Quality level. If the current batch of 250000 units has 50 rejected units by the QA, does the production line meets the required performance level?

Answer 1

The finance department's billing process has a 4% defect rate, and the actual sigma performance would need to be looked up in a sigma level table. The pharmaceutical manufacturing line with 50 rejects out of 250,000 units meets the 6 Sigma Quality standard, equating to 200 defects per million which is below the 3.4 defects per million required for a process to be at 6 Sigma.

Step-by-step explanation:

To calculate the Sigma Performance for the billing department, which reviewed 200 bills and found 8 defects, we apply the concept of process capability, which involves measuring actual performance relative to the potential performance.

The process's defect rate is 8/200, which is 4%. In terms of sigma level, we can refer to the sigma level tables that translate defect rates into sigma levels. However, a Z score can also be calculated for this process.

For the pharmaceutical manufacturing manager, the goal is 6 Sigma Quality, which translates to 3.4 defects per million opportunities. With 250,000 units and 50 rejects, the defect rate is 50/250,000, or 200 defects per million, which is well within the 6 Sigma Quality range.