Hi!
Our Sales department wants our goal rejection rate to be 2% of sales. Would 2% of cost be better?
We do already have some simple measurements in place to monitor our quality performance (none including dollars):
1) Total Closed Rejections Orders / Total Closed Accepted Orders
2) Total Rej Qty / Total Accepted Order Qty
3) Total Rej Qty / Total Qty Produced (rej qty + accepted qty)
We have a PPM calculation for option #2 above, but should that really be calculated using formula #3?
What other ways are companies monitoring and measuring quality performance?
Our Sales department wants our goal rejection rate to be 2% of sales. Would 2% of cost be better?
We do already have some simple measurements in place to monitor our quality performance (none including dollars):
1) Total Closed Rejections Orders / Total Closed Accepted Orders
2) Total Rej Qty / Total Accepted Order Qty
3) Total Rej Qty / Total Qty Produced (rej qty + accepted qty)
We have a PPM calculation for option #2 above, but should that really be calculated using formula #3?
What other ways are companies monitoring and measuring quality performance?