Defect Rate Comparison and Statistical Analysis PPT

This PPT slide, part of the 72-slide Six Sigma - Confidence Interval Analysis PowerPoint presentation, presents a comparative analysis of defect rates from 2 distinct processes, labeled Process 1 and Process 2. Each process is detailed with specific metrics: sample sizes (n1 and n2), number of defects (d1 and d2), and calculated defect rates (p?1 and p?2). For Process 1, the sample size is 10,000 with 50 defects, resulting in a defect rate of 0.005. Process 2 also has a sample size of 10,000, but only 10 defects, leading to a lower defect rate of 0.001.

The slide calculates the difference in defect rates, showing that p?1 - p?2 equals 0.004, or 0.4%. It further identifies the minimum values from a set of calculations, indicating a statistical threshold that highlights the difference between the 2 processes.

Confidence intervals for the difference in defect rates are presented, with intervals calculated at 90%, 95%, and 99% confidence levels. The intervals suggest that the difference between the 2 processes is statistically significant, as the defect rate of zero does not fall within any of the confidence intervals. The conclusion drawn is that with 99.5% confidence, Process 1 is producing more defects than Process 2, indicating a clear performance disparity.

This analysis is crucial for decision-makers looking to optimize processes and reduce defects. Understanding these metrics can guide resource allocation and process improvement initiatives. The clear presentation of data and statistical analysis provides a solid foundation for further discussions on operational excellence.

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Operational Excellence Process Improvement Six Sigma