Supplier Quality, Development & Audits worked example

Supplier Defect PPM with defective units rejected of 110 units: a worked example

Push defective units rejected up to 110 units and the picture changes. This example computes every intermediate figure at that operating point. Use it to grade supplier quality and track PPM trends in Supplier Quality, Development & Audits.

The inputs for this scenario

  • Defective units rejected: 110 units (raised for this scenario; the documented default is 45)
  • Total units received: 120,000 units (unchanged)

Working through the calculation

  • Applying the documented formula (Defect PPM = defective units ÷ total units received × 1,000,000) to the inputs above produces each figure below.
  • At this operating point the engine returns 917 PPM for defect ppm, the number this scenario is built around.
  • At this operating point the engine returns 0.09 % for defect rate.
  • At this operating point the engine returns 110 units for defective units.
  • At this operating point the engine returns 120,000 units for total units.

How this compares with the baseline

  • Against the tool's baseline example, where defective units rejected sits at 45 units and the headline result is 375 PPM, this scenario comes in 144% above the baseline at 917 PPM.
  • It converts defective units and total units received into a defect rate and its parts-per-million equivalent for one supplier or lot. The value of this scenario is the size of the gap it exposes: that gap, priced out over a year, is the budget you can justify spending to close it.

Results at a glance

  • Defect PPM: 917 PPM (headline result)
  • Defect rate: 0.09 %
  • Defective units: 110 units
  • Total units: 120,000 units

Run it with your numbers

  • Every input above is editable in the live Supplier Defect PPM calculator, which recalculates instantly and can be shared with the inputs intact.

Last reviewed 2026-05-12.