DPMO and Euler's Defect Rate Calculation | A Visual Comparison

If you read enough material on Six Sigma principles you most likely have come across the calculation of defects per unit (DPU) or defects per million of opportunities (DPMO). You have also, most likely, come across the suggested "Euler's formula" for estimating defect rates. Now, as we all know, 1 - defect rate equals yield. In other others, if you are somehow calculating a defect rate of a process you are also consequently easily computing the yield of the process. For example, a process with 10% defect rate has, mathematically, 90% yield. With that out of our way, let's look at how each is calculated and the issue with Euler's formula when applied to a defect rate level over 10%. DPMO is simply stated, the defects (per unit) divided by one million (that is, one million opportunities of finding a defect). Note: this is any unwelcome departure from the standard, not necessarily the entire unit being defective , the distinction here is very important. At a 4.5 si...