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Exercise #4 σ? Amazon













       Amazon

       Processes 36.8 million

       orders                                            Sigma Level                      DPMO                            # Defects                        Cost per error
       Cost $35

       Complete 3, 4, 5, 6 sigma                                      1σ                                   691,492                    25,428,800                   $890,008,000

       For: # of Defects and Cost                                     2σ                                   308,538                    11,374,880                   $398,120,800

       of Errors
                                                                      3σ


       # of Defects
       = 36,800,000 * (100%-30.9%)                                    4σ

       = 36,800,000 * 69.1%                                           5σ

       = 25,428,800
       = 25,428,800 * $35                                             6σ

       = $890,008,000
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