![]() ![]() IATF 16949 - Automotive Quality Systems Standard Inspection, Prints (Drawings), Testing, Sampling and Related Topics How is PPM (Parts Per Million) Calculated? So, 1 defect in 10,000 parts x 100 potential defects per unit (opportunities) would be 1 ppmo. 1 defect in a million parts would be expressed as 1 ppm.ĭefects per million opportunities would be based on number of parts x number of potential defects per unit (opportunities). Internally, some companies base it on opportunities, especially if they are running a six sigma program.ĭefects per million units would be based on defects / 1,000,000 parts. There is some validity to this, but most customers track it based on units, not opportunities. So, measuring the number of defective UNITS could be a pretty high number, based on the complexity. The theory here is that a complicated system (ie: transmission) has many more opportunities for defects than a simple metal bracket. Non-defective parts should not be factored in because they were not defective.ĭefective ppmo is a little different. So, yes, every defective part would count. The common defintion for PPM is Defective parts per million. So I do not look at number of parts alone to determine supplier quality. The supplier with more NMRs is costing more time and money than the supplier with one NMR. ![]() Or a supplier may have 50 parts rejected with 25 NMRs. A supplier my have 2,000 parts rejected with one NMR. Six month later I have not had an issue.Īt the end of the month I evaluate total number of parts rejected, and the total number of nonconformance reports (NMR) issued per supplier. I did this recently with a hardware supplier that was shipping in the incorrect product(s) for three month (different product). They do no value add to the product, they purchase, store, pick, ship product. I also let them know that they are in the distribution business and should be experts in warehousing. When I do this with a distributor I explain my method of determining the PPM. ![]() ![]() If we buy in "feet or pounds" we will reject in “feet or pounds”. Just because it is 1 box, I am still down and can not produce product. We count every part, even if is one box of 2,000 bolts. ![]()
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