Why we calculate supplier PPM (Part Per Million).WE can
calculate Supplier performance in % also, why PPM ?
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Answer Posted / Bhuwan Chandra Pandey
Suppliers are often evaluated using Parts per Million (PPM) to measure the number of defective parts produced relative to a large quantity. Calculating supplier performance in PPM allows for easy comparison across suppliers and products, as the smaller the PPM value, the better the supplier's performance. Using PPM provides a standardized measurement that can be used to monitor and improve quality control within supply chains.
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