Translating C/1000 to PPM

[TownDawg]

Ok.. I'm confused. I'm logged onto the DaimlerChrysler WIS server that shows my C/1000 for MIS 6 (Concerns per 1000, for six months in service).

It shows my target as .0002 and if I am calculating this right -- that's only 2 PPM?? My gosh, six sigma was originally set up to achieve a 3.4 PPM target? and I have to be TWICE as good as that??

Grrrr.. Surely I'm calculating this wrong. This means on a 100K yearly sales, I'm allowed 0.2 failures (less than ONE vehicle). ONE mistake, and I have shot my C/1000 for MIS 6 target to "hades in a hand-basket?"

Grrrr.. Surely I'm calculating this wrong. Could someone enlighten me and show me the error of my ways? Thanks in advance!

 

[Marc]

Any takers on this?

 

[Tim Folkerts]

I have no direct knowledge, but perhaps C/1000 really just means the rate, not actually dividing by 1000.

For instance, if you have 2000 opportunities and 4 concerns, that is 2 concerns per thousand, which would be written as a rate of 0.002. In this case, the target of 0.0002 would be 0.2 concerns per 1000 or 0.02% or 200 ppm.

BTW, if your original approach was correct, then 0.0002 C/1000 would be 0.0000002 or 0.2 PPM!

But remember, my approach is just a hypothesis! The best answer is to ask Chrysler.

Tim F

 

[Warranty_Guy - 2012]

Well this is one i can answer

c/1000 is the calculation that is used for Warranty measurement and not a easy one. The calculation is based on the number of occurences divided by the LAG factored sales. This number is a forecast of unexpended warranty dollars by MIS Month in Service. What i have done is taken the total number of vehicles and number of claims and did a simple calulation for PPM.

This hoewever was not very well received by the customer as they like to see there own numbers C/1000 and EPUS.

The Calculation does not take into account multiple parts but rather one claim per vehicle. Example i have a hard time with is if you supply two parts per vehicle and you have one claim it does not make allow you to have a ppm based on what you shipped but rather a vehicle.

The WIS system is not as easy as taking your parts defective divided by your parts shipped.


If you need some more information please reply as i have been working with this system for many years


On a another note be careful of the lag factored sales. The lower they go the higher your C/1000 and EPUS goes based on the calculation.

 

[Warranty_Guy - 2012]

More warranty Chat

On another note regarding your target of .002. Hmm this is something i have some expertise on. The FFR is calculated on the best in class of the LC Local Commodity Code. What this means is that in the LC group you need to ensure
1) you are in the right Commodity Code, including the right LOP numbers.
2) Ensure Best in class is supplying like commodities.

These two are very critical. Best in class is calcualted based using the best of the previous years performance by MIS. This changes each month based on performance. The supplier who is best in class for MIS 5 may not be Best in class for MIS 6