Re: Supplier Performance Measurement PPM?
I think we have to be careful on selecting just PPM as the overall metric for the factory. If you want to see the real situation with the suppliers affecting your factory. PPM from Suppliers where you expend more money probably affects you more, also if you handle different units with suppliers, for example Lb, and you want them to mix with pcs or Oz that will give a weight not recommended, for example you can receive so many Oz of something, and never have an issue, so your ppm's will be low no matter that you have 3 pcs that affected most the product. Also you have to consider how many pcs or LB coming from one supplier are used on and indivicual unit you are making at your factory. It is not as easy at it sound.
If any of you guys here already have something that is considering the factors I am mentioning, that will be of a good help. I have already some ideas of how to handle this, but I prefer to use something already established somewhere, and that is working well.