Defects in Parts per Million is one of the most common measurements used to "quantify" a supplier's quality level. In my experience supplier caused disruptions is of more concern to me. (I would rather have one incident rejecting 10,000 parts that 10,000 incidents rejecting one part.)

Perhaps a better measurement would be Disruptions/million parts shipped?

Thoughts?

In addition to PPM your suggested metric is another of the three typical areas metrics evaluate: quality, timing (e.g., delivery in this case) and cost.

Defects in Parts per Million is one of the most common measurements used to "quantify" a supplier's quality level. In my experience supplier caused disruptions is of more concern to me. (I would rather have one incident rejecting 10,000 parts that 10,000 incidents rejecting one part.)

Perhaps a better measurement would be Disruptions/million parts shipped?

Thoughts?

PPM is a meaningless statistic. I think you're on the right track with regard to "disruptions," but I don't see a need to have an index value. If something a supplier does (or doesn't do) hurts you, then do something about it.

PPM is a meaningless statistic. I think you're on the right track with regard to "disruptions," but I don't see a need to have an index value. If something a supplier does (or doesn't do) hurts you, then do something about it.


Agreed. PPM is an aftertaste from a long past "Flavor of the Month", in my opinion. This measure might have some meaning in an industry turning out millions of identical, or nearly identical widgets. It means nothing in a company that works with lost of 100 or less.

The only purpose in any of these types of things is to have measurable goals. Something to post on a bulletin board, or show to executive types who need complex items boiled down. They have little/no impact on actual plans and activities.

Measure what works for you.

James

DPPM is an effective communication tool, if you have other more effective tools, why not?

I agree 'disruption' would be a very good indicator, and have thought of it. However the difficulties in designing an acceptable measuring system has put me off.

Agreed. PPM is an aftertaste from a long past "Flavor of the Month", in my opinion. This measure might have some meaning in an industry turning out millions of identical, or nearly identical widgets. It means nothing in a company that works with lost of 100 or less.



James,

I couldn't have said it better myself. I have 2 customers that are applying the PPM to their supplier evaluation. Unfortunately, the tool is not understood by the powers that be. Oh well.

Steve - here is another discussion on PPM that is pretty good - especially Steve Prevette comments at the end of the thread

http://elsmar.com/Forums/showthread.php?t=9877