M
m2kulkarni
Hello!
This is my first post.I have first checked that this has not been answered before but if it has, please excuse me.
We are going in for a software powered solution for our company's functions. I need a to know how to calculate a vendor's PPM. This is further required to determine his rating. We have a few other criteria for the rating apart from the PPM for the period. (such as end customer issues, delivery etc)
1) I believe that correct PPM can be calculated when the lot is 100% inspected. We are accepting the lots after sample inspection. So, if the lot is accepted, even if it contains a few defective items, the PPM will be zero.
2) If after the lot is rejected after sample inspection, the PPM for that instance will be 1000000 even when the majority of the items will be OK.
3) What when there is further rejection of vendor supplied items on our assembly line.
4) What when after case#3 above, we re-inspect the stock (our inventory) and partially accept/reject the quantity.
5) Remember, I am going to map all this to the new software program.
Can sombody help?
This is my first post.I have first checked that this has not been answered before but if it has, please excuse me.
We are going in for a software powered solution for our company's functions. I need a to know how to calculate a vendor's PPM. This is further required to determine his rating. We have a few other criteria for the rating apart from the PPM for the period. (such as end customer issues, delivery etc)
1) I believe that correct PPM can be calculated when the lot is 100% inspected. We are accepting the lots after sample inspection. So, if the lot is accepted, even if it contains a few defective items, the PPM will be zero.
2) If after the lot is rejected after sample inspection, the PPM for that instance will be 1000000 even when the majority of the items will be OK.
3) What when there is further rejection of vendor supplied items on our assembly line.
4) What when after case#3 above, we re-inspect the stock (our inventory) and partially accept/reject the quantity.
5) Remember, I am going to map all this to the new software program.
Can sombody help?