PPM

Parts Per Million

A measure of the product / process ability to match the specification, it is expressed in ‘number of defect parts per million’. Not getting things right first time causes wasted effort, wasted resources and wasted production time, which all lead to excess costs. To the customer, it means interrupted production flow, poor quality and ultimately higher prices. Reducing PPM will help improve quality, cost, and delivery.

	Quantity of defective units
PPM =	________________________________	x 1,000,000
	Total quantity of units produced

· Units : Parts per million (PPM)

· Data Required :

o No. of units produced in period

o No. of units scrapped in period

o No. of units reworked in period

o No. of units accepted not to specification in period