Parts per Million (PPM)

Hello, its been a while since i last posted - hope everyone is doing well!!

My mind has went blank when trying to work this out and was hoping someone could help me

We are judged by our main customer using our PPM score - that's the easy bit.

The bit i am confused about is that we supply them 3 separate product ranges, all of them have different PPM targets.

There is also a total PPM target - how would i work out my total PPM target based on the 3 different sub-targets.

Would it be a simple case of adding them all together to get the overall target?

This should be and probably is easier to solve than i think it is ....

 

Scott,

I would weight the individual targets by the volume of different part types you ship to the customer.

(In fact it is easier to think in terms of how many defect parts of each product type you are allowed)

PPM target A x Volume of Parts A = number "allowed" of defect parts A (and similar for Parts B and C).

Then take (Total Number of defective parts A + B + C) / Total volume of all parts = overall customer ppm target.

 

Silly question coming:

How does your customer work out your total ppm score? They are the judge and jury...

 

Hi Eric,

Our customer works out our PPM score by using the standard calculation of rejects divided by opportunities x 1,000,000.

What they have is a target of total ppm but also sub targets based on product group and im not sure how they have got to the total target based on the different sub groups.

 

Mine was a question and answer together...

A: Ask the customer

From your definitions in the post immediately above, The Englishman's post seems pretty reasonable...even if he is Abroad...:0