Monitoring supplier quality at p.p.m. levels

Lot accept rate had lost its value as a metric for monitoring supplier quality at Motorola, and a new metric was needed. Line p.p.m. was chosen as the new metric for supplier quality. Implementation of a line p.p.m. report was seen to be a major undertaking from the outset of the project. Eventually the reporting system would involve five to seven Motorola manufacturing sites, numerous piece part commodities, and over twenty suppliers. Additionally, it was desired to know not only the number of defective parts, but also the defect type. To meet all of the objectives of the line ppm project, a year-long pilot project was developed. Starting with only four suppliers, one commodity, and two Motorola locations, the project expanded as expertise in data collection and reporting was developed. The authors discuss the need for the line p.p.m. metric, how the program was successfully implemented into five Motorola sites within the one-year pilot project, some of the stumbling blocks encountered along the way, and the type of data that is currently being reported