Sushil or anyone else out there,
I am responding to why DPMO can/can not be related to RTY.
I have found that one major difficult (as pointed out above) is the normal distribution assumption... as you may know, even if an overall process exhibits normality certain process steps do not. It is actually helpful to compare CpK (capability) to FTY (in RTY sense) to check this assumption... though not foolproof it may show you some interesting things happening in the process. However, the main reason I have added to this thread: No one seems to have brought up the point that DPMO looks at defects which, let us assume, are properly recorded and assigned a cause and process step. We can usually pull this data with ease. However RTY also pulls in "rework". It is sometimes dangerous to assume that all "out-of-spec"/"out-of tolerance" are either recorded as waste or reworked. Sometimes in-spec product is re-worked for an number of reasons (good or bad) and is therefore not captured in the DPMO umbrella. This is actually why I prefer RTY when looking at a process - it can direct you to little hidden rework zones that DPMO often misses. So, in conclusion DPMO misses out on some of the rework and therefore gives an incomplete picture of the reality on the shop floor.
Hope this helps.
Q. Kangaroo