PPM - Internal PPM / External PPM

#1
Hello,

For example in our company we have 2 indicators related to failures, internal PPM and external PPM.
If i take as example product X, we produce 10000 pieces and we have 28 defective parts => 2800 internal PPM.
If i deliver 5000 pieces and customer claims 1 defective part => 200 external PPM.
Then, together with customer we decide to return those 5000 pieces to our plant, for resorting. After resorting we find 2 additional defective parts.
Now the question is: those 2 defective parts will be added to internal PPM or to external PPM?

Why internal PPM: because pieces were returned and resorted in our facility, customer didn't detected them.
Why external PPM: because pieces were already delivered to customer.

Thank you.
 
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Eredhel

Quality Manager
#3
Why internal PPM: because pieces were returned and resorted in our facility, customer didn't detected them.
I may be misreading, but if it "returned" then I feel like you're saying it left your facility. I wouldn't consider something that left our facility to be internal.
 

leftoverture

Involved In Discussions
#5
Yes, add the two to the one the customer reported for 3 in 5000 <external> - 600 PPM
I would tend to agree.

I'm jumping in late on this thread but noticed you say if the customer receives 5000 pieces and claims 1 bad part, you count the 1 bad part towards your external PPM.

In our case, if the customer notifies us of an issue, and needs to sort the 5000 pcs, we would count all 5000 against our external PPM because they had to be sorted. Sort results would not affect how we count it towards our external PPM metric.

I'm just wondering if we are unusual in how we count this; or how is everyone else counting their external PPM. Thanks!
 
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