Re: DPPM - quality indicator?
If your definition of defective is a complete unit/product, then your calculation of DPPM is correct.
DPMO is typically used when you track defects instead of defectives. Multiple defects are possible per a single unit. This can get difficult unless you set very specific guidelines on how many defect opportunities exist per unit. Many opt for a simple component count of the BOM, saying each component can be good or bad and not trying to define how many different ways it can be bad. DPMO does take part complexity into account, but most customers are just as upset with one bad complex product as they are with one bad simple product.
"A fool can learn from his own experiences; the wise learn from the experience of others." - Democritus, 460-370 B.C.