Logistical or Quality PPM's? Calculation of PPM relevant parts

B

Bolthead

In our quality department there is a discussion going on about the calculation of PPM relevant parts. When is something calculated as a logistical PPM and when is something calculated as a quality PPM.
What I am wondering about is how this is being done at other companies.
Please help me in this.
 
M

M Greenaway

Perhaps you could expand on your definition of 'logistical' and 'quality'.
 
B

Bolthead

Okay I understand what you mean. What I mean with "logistacal" is for example: Misdelivery, underdelivery etc. And what I mean with "Quality"is everything about product quality.
 

Jim Wynne

Leader
Admin
Bolthead said:
Okay I understand what you mean. What I mean with "logistacal" is for example: Misdelivery, underdelivery etc. And what I mean with "Quality"is everything about product quality.
I'm not sure if the dichotomy is appropriate, especially with regard to PPM as a method of measurement (my personal opinion is that PPM only confuses things unless you're actually making a million of something), but it seems that the two types of concerns should be easy to separate. "Quality" problems might be restricted to events when part specifications (such as drawing requirements) are not met, and "logistical" issues might pertain only to other customer requirements, such as shipment dates, packaging, lot sizes and the like. I think that the issues might be further confused, though, by the fact that a missed shipment date is a quality problem.
 
Q

qualitygoddess - 2010

Bolthead said:
In our quality department there is a discussion going on about the calculation of PPM relevant parts. When is something calculated as a logistical PPM and when is something calculated as a quality PPM.
What I am wondering about is how this is being done at other companies.
Please help me in this.

You can calculate PPM or even dpmo. More importantly, what is the right metric for the data so management can make a decision on improvement initiatives from it. For example, if you tracked logistical issues with a pareto chart that showed percentages of occurrence against a total % OR if you tracked a logistics PPM, would you be more or less likely as managers to set a goal and work toward improvement? Another example -- when we tracked on-time delivery as a PPM, no one really understood if it was 'good' or 'bad'. When we tracked delivery as a %, and then used a pareto chart for the causes, management suddenly wanted to do something to improve it.

--QG
 

Helmut Jilling

Auditor / Consultant
Bolthead said:
In our quality department there is a discussion going on about the calculation of PPM relevant parts. When is something calculated as a logistical PPM and when is something calculated as a quality PPM.
What I am wondering about is how this is being done at other companies.
Please help me in this.

This was not mentioned, but I frequently see ppm's incorrectly calcualted based on rejected quantities of parts, when it should be defective parts. For example if 10,000 parts were rejected, but only one was actually defective, that would make a huge difference in the ppm value.
 
A

alekra

I believe that when you have a Quality Management System it´s a nonsense to discuss whose responsability the ppm is. I would say that it is the ppm of the process, not of the area. The whole company should take care about it.
 
T

tabare - 2009

HELP!!!
More PPM Questions...
I am lost it's been forever since Iv'e done Quality % as per used with PPM. This is what my customer got. How did they calculate this?


Quality Rating 12 Months 75%
Total Failures 124
Quality Parts Received 4,281
PPM 12 Months 28,965
 

Jim Wynne

Leader
Admin
tabare said:
HELP!!!
More PPM Questions...
I am lost it's been forever since Iv'e done Quality % as per used with PPM. This is what my customer got. How did they calculate this?


Quality Rating 12 Months 75%
Total Failures 124
Quality Parts Received 4,281
PPM 12 Months 28,965

It looks like they made a mistake and the number should be 28000; they arrived at their number by using the proportion of 124 to 4281 (.028 * 1,000,000 = 28,965). But they should have used 124/(4281+124) = .028.
The 124 "failures" and 4281 "quality parts" make up the total number of parts received.
 
T

tabare - 2009

Thank you!!!

Can you tell me how to calculate the % from PPM.. How did they come up with 75% even with the numbers presented..?
 
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