Parts per Million (PPM) Defect Rate
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Category:  
Operational

Measures the number of defective parts per million produced.

What it Measures ?

How many parts have defects in every million produced.

Relevant StakeHolders 

Quality Control, Engineering Team

Why it Matters ?

Tracks defect rates per million parts.

In-depth Use Case / Real-world Example

Parts per Million (PPM) Defect Rate tracks the quality of production by counting the number of defective parts per one million units produced. For example, if 50 defective parts are found in one million, the PPM defect rate is 50. A low PPM defect rate indicates a high level of production quality, while a high PPM suggests the need for process improvements or quality control measures.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Defects / Total Parts Produced) * 1,000,000

Should Aim For
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