Supplier Quality (PPM Defective)

Defective parts per million received from a supplier.

Supplier quality failures cause rework, line stoppages, expedited freight and customer escalations far larger than the part cost.

120 defects in 400,000 units received = 300 PPM.

Trend matters more than the absolute number. A step change usually signals a process, tooling or sub-tier change at the supplier.

Require corrective action reports on every excursion, audit high-risk processes, and qualify changes before they ship.

Netting defects found at receiving against those found in production, which hides escape rates.