PPM Levels for Electronics Manufacturing

Hello All,

I work with a electronics contract manufacturer and we are working with our customers to develop some standards for supplier excellence. Currently our customers use PPM levels as a metric for supplier scorecard, but it is calculated the same for electronics as it is for every other supplier. (i.e. nuts and bolts or sheet metal)

We are working with them to develop an improved standard for electronics controls because it is currently impossible for us to achieve the PPM level they are asking for in order to obtain the highest score.

Can someone here provide insight as to what the industry standard PPM would be for electronics and is there a way for us to present something to the customer that is mutually beneficial?

Thanks in advance

2 Replies

Dear Lucas,

I've encountered such situations rather often. The last case looked as follows. Customer asked for Cpk and Ppk values which were then used to calculate Process Yield (PY) and, correspondingly, 1-PY. We've analyzed process stability first, 'cause w/o it no metric is relevant. The process turned out to be stable. But its distribution function turned out to be non-normal. So there is no transition from capability indices values to PY. Of course, there is a possibility to calculate PY by direct calculation of the ratio of good items to all checked. However, this approach requires too big samples to control, and leads to cost increase. Finally we pusuarded customer to agree with the following procedure: we regurlarly demonstrate that our process is stable (Shewhart control chart) plus we regurlarly control a sample of reasonable (for us) size and we sum up all controlled samples in order to reach the required value in the future. But such an approach has an unspoken danger. Your customer must understand that the decision to stop the supply can be made only after the enough amount of items is checked. Hope this will help. Good Luck!

@Lucas Telford
PPM stands for “Parts Per Million”. It is a measure of the amount of material that needs to be added to a product in order to make it perform at a certain level. This is used to determine the quality of a product, and it is also used in the manufacturing process. The higher the PPM, the better the quality of the product. melon playground