C
Currently as one of our KPI's we monitor the DOA (dead on arrival) and ELF (early life failure) rates. Currently we monitor these as percentages using the calculation:
No. of reported ELF's or DOA's/Total number of units shipped that month.
We have what a control level set for what we consider the maximum acceptable failure rate for these two items.
Some months a relativley small number of units may be shipped meaning that even 1 or 2 units being reported with either of these failure rates can send us over our target without there necessarily being a "real" issue.
To try and improve this, i.e. so when we go over target we can be sure it's not just 1 or 2 units skewing the percentage in a particular month, we are looking at changing to using a 3 month moving average, we typically have a spike in the number of units shipped at the end of each quarter for financial reasons so a 3 month moving average seems a sensible choice IMO.
My question is; is the 3 month moving average method I intend to use the best or even good method for doing this? Are there other methods that may be better ? and what are they?
Thought it would be better to get the opinion of some that are more knowledgable than myself before going to management with it.
Thanks in advance.
No. of reported ELF's or DOA's/Total number of units shipped that month.
We have what a control level set for what we consider the maximum acceptable failure rate for these two items.
Some months a relativley small number of units may be shipped meaning that even 1 or 2 units being reported with either of these failure rates can send us over our target without there necessarily being a "real" issue.
To try and improve this, i.e. so when we go over target we can be sure it's not just 1 or 2 units skewing the percentage in a particular month, we are looking at changing to using a 3 month moving average, we typically have a spike in the number of units shipped at the end of each quarter for financial reasons so a 3 month moving average seems a sensible choice IMO.
My question is; is the 3 month moving average method I intend to use the best or even good method for doing this? Are there other methods that may be better ? and what are they?
Thought it would be better to get the opinion of some that are more knowledgable than myself before going to management with it.
Thanks in advance.