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We are looking at changing our DPPM metric and want to see how other companies are calculating this metric. Currently if a supplier provides a direct deliverable part we count that as one part (even if that part is made up of 40detail parts). We also count kits received as one part received. Then calculate DPPM based on parts rejected vs parts received.
However, we have many suppliers who provide us with a direct deliverable as mentioned above (one part made up of 40 or more detailed assemblies) and he still only gets credit for shipping one piece. We are looking at changing our method of to give credit to the supplier for all components parts shipped (i.e. credit the supplier with shipping 40 pieces when we recieve the one direct deliverable).
We feel this will be a more acurate and fair method, but we want to know what others are doing who might have the same situation.
However, we have many suppliers who provide us with a direct deliverable as mentioned above (one part made up of 40 or more detailed assemblies) and he still only gets credit for shipping one piece. We are looking at changing our method of to give credit to the supplier for all components parts shipped (i.e. credit the supplier with shipping 40 pieces when we recieve the one direct deliverable).
We feel this will be a more acurate and fair method, but we want to know what others are doing who might have the same situation.