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QICID: 20128
Title: Use Simple Models for Incoming Defects
Copyright: Author
Author: Bartlett, Terry R.
Organization: Unisys Corp., Roseville, MN
Subject: Benchmarking,Lot tolerance percent defective (LTPD),Supplier quality assurance,Supply chain management;
Series: Quality Progress, Vol. 38, No. 8, August 2005, pp. 27-31
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Abstract: The best quality system cannot prevent or detect all defects before delivery, so customers generally set a quality target they want a supplier to achieve. The standard should be high, but achievable. For example, the customer might expect the supplier to maintain less than 1,500 defective parts per million (PPM) on the total product received each month. Setting a PPM standard for incoming product begins with assigning appropriate defects per million opportunities (DPMO). DPMO values can be derived from benchmark suppliers, so that a PPM benchmark can be set for future shipments of similar product from any supplier. Using the customer's best suppliers as the basis of the benchmark can give a quality engineer a reasonable basis for setting the PPM bar.
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