Supply Chain & Procurement worked example
Supplier Quality PPM with nonconforming parts rejected of 150 parts: a worked example
What does the result look like when nonconforming parts rejected reaches 150 parts? The full calculation is worked below with real intermediate numbers. Use it to grade suppliers and track PPM trends in Supply Chain & Procurement.
The inputs for this scenario
- Nonconforming parts rejected: 150 parts (raised for this scenario; the documented default is 60)
- Total parts received from supplier: 150,000 parts (unchanged)
Working through the calculation
- Applying the documented formula (Quality PPM = defective parts ÷ total parts × 1,000,000) to the inputs above produces each figure below.
- At this operating point the engine returns 1,000 PPM for quality ppm, the number this scenario is built around.
- At this operating point the engine returns 0.1 % for defect rate.
- At this operating point the engine returns 150 parts for defective parts.
- At this operating point the engine returns 150,000 parts for total parts.
How this compares with the baseline
- Against the tool's baseline example, where nonconforming parts rejected sits at 60 parts and the headline result is 400 PPM, this scenario comes in 150% above the baseline at 1,000 PPM.
- A figure at this level is achievable when nonconforming parts rejected is genuinely sustained, not just peaked for a shift. PPM only reflects the parts you actually inspected and rejected; if incoming inspection is sample-based rather than 100%, escaped defects and unreported field returns are invisible to this number.
Results at a glance
- Quality PPM: 1,000 PPM (headline result)
- Defect rate: 0.1 %
- Defective parts: 150 parts
- Total parts: 150,000 parts
Run it with your numbers
- Every input above is editable in the live Supplier Quality PPM calculator, which recalculates instantly and can be shared with the inputs intact.
Last reviewed 2026-05-12.