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05.11.2008 at 04:43PM PDT, ID: 23393246
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Help with calculating Baseline Sigma

Tags: Six Sigma
I have the following question that came up in my six sigma exam and i want to know the answer to the same:

Smith sees opportunities for his bank in each of the above projects, but Ross wants to begin with a project that will have high impact in improving customer satisfaction.Smith has looked at recent customer data and of the 374,400 customers, 2,047 filed customer complaints relating to the time delays in the availability of deposited funds following a customer banking deposit.   One customer deposited
a check from their stock brokers interest bearing  checking account for $8,658 with QTAB and the amount was not available in the customer's account for 7 days.  Smith has hired a Black Belt to lead a project to address the following question:What do deposit delays mean to the bank and to customer satisfaction?       

You need to determine the  baseline sigma.
6 sigma      3.4 dissatisfied customer experiences per million (DPMO)
5 sigma      233 DPMO
4 sigma       6,210 DPMO                        
3 sigma      66,810 DPMO                        
2 sigma      308,770 DPMO                        
1 sigma      697,672 DPMO      

Thanks                        
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Question Stats
Zone: Other
Question Asked By: TECH_NET
Solution Provided By: ozo
Participating Experts: 2
Solution Grade: A
Views: 23
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05.11.2008 at 04:53PM PDT, ID: 21543976

Rank: Genius

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05.11.2008 at 04:59PM PDT, ID: 21543988

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05.11.2008 at 05:19PM PDT, ID: 21544031

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05.11.2008 at 05:26PM PDT, ID: 21544048

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05.11.2008 at 05:34PM PDT, ID: 21544066

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05.11.2008 at 06:44PM PDT, ID: 21544234

Rank: Wizard

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05.11.2008 at 06:49PM PDT, ID: 21544239

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05.11.2008 at 07:37PM PDT, ID: 21544389

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05.11.2008 at 07:43PM PDT, ID: 21544409

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05.11.2008 at 04:53PM PDT, ID: 21543976

Rank: Genius

Are we to assume that customers file a complaint if and only if they are dissatisfied?
if so it sounds like you just need to express  
 2,047 dissatisfied customer experiences per  374,400
as
n dissatisfied customer experiences per million
 
05.11.2008 at 04:59PM PDT, ID: 21543988
Does the 7 day shift add to the Sigma shift to the process Sigma value that is calculated. My guess was that the question was illustrating one of the scenerio of un satisfied customers.  
 
05.11.2008 at 05:19PM PDT, ID: 21544031

Rank: Genius

Unless the the implication is that that example is the only "dissatisfied customer experience" among the 374,400 customers in the data and  2,047 filed customer complaints,
that seems like a reasonable guess.
But the question does not seem to tell us whether those  2,047 filed customer complaints were one complaint each from 2,047 dissatisfied customer experience, or 2,047 complaints from one dissatisfied customer experience.
Or even whether there were any other complaints and or dissatisfaction not  relating to the time delays in the availability of deposited funds following a customer banking deposit..
 
05.11.2008 at 05:26PM PDT, ID: 21544048
In a typical scenerio where the question is not specially clear, we can make the assumption that 2047 filed compliants were from unique disatisfied customers. And i believe the answer could be an approx.

What is your baseline sigma? (Approximately)
 
05.11.2008 at 05:34PM PDT, ID: 21544066

Rank: Genius

2,047 / 374,400 = ? / 1,000,000
Accepted Solution
 
05.11.2008 at 06:44PM PDT, ID: 21544234

Rank: Wizard

It is unclear just what is your question.
The only question mark is in
"What do deposit delays mean to the bank and to customer satisfaction?"
-

The answer is the delays increase customer dissatisfaction, decreses the banks risk of bad checks and increases the amount of interest that the bank earns
OZO addresses the only sigma question I can see..
 
05.11.2008 at 06:49PM PDT, ID: 21544239
Ozo, your baseline sigma formula computes to 5467.42.
Abbur, the question allowed only one input and hence i believe they expected only the baseline sigma.

Anyway if ozo is correct, i did not provide the right answer.
 
05.11.2008 at 07:37PM PDT, ID: 21544389

Rank: Genius

If this is a business and banking question, it might require external knowledge about customer psychology and banking practice and regulation like local usury laws and how much profit banks in your country make from fees and increased interest charged to customers with unavailable funds.
If this is a mathematics question, all necessary conditions should be stated in the question.
If the question is imprecise, you may need to make certain assumptions like that references to "complaints" and to "dissatisfaction" are talking about the same thing.
Some things may be irrelevant.  The name "Smith" may be irrelevant. unless you know something about "Smith" that's different than "Jones"
The question that Smith wants to answer may be irrelevant to what you need to determine.
But dividing two numbers and comparing it to a table supplied in the question seems too pointless  for a question on an exam or on ee,
So what assumptions did you make to arrive at your answer?
 
05.11.2008 at 07:43PM PDT, ID: 21544409
Doesn't your formula calculate the DPMO and the results falls in the range of 3-4 sigma.??.

 
 
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