DPMO
Business & Finance abbreviation · Management & Strategy
| Stands for | Defects per million opportunities |
|---|---|
| Categories | Business & Finance |
DPMO stands for Defects per million opportunities, a management & strategy abbreviation.
Quality metric that counts defects relative to the number of chances for a defect to occur, scaled to one million. It lets processes of different complexity be compared and converts directly to a sigma level.
Example: At 233 DPMO, the invoice process runs at about five sigma.
Usage notes
A process at six sigma produces 3.4 DPMO, assuming the conventional 1.5-sigma long-term shift. The formula divides defects by the number of units times opportunities per unit, then multiplies by one million. Defining what counts as an "opportunity" is the most contested part of the calculation.
Related abbreviations
More management & strategy abbreviations
- COB – Close of business
- CoE – Center of excellence
- CSF – Critical success factor
- CSR – Corporate social responsibility
- CTQ – Critical to quality
- DMAIC – Define, measure, analyze, improve, control
- DRI – Directly responsible individual
- EGM – Extraordinary general meeting
- ELT – Executive leadership team
- EOB – End of business
- EOD – End of day
- EOI – Expression of interest