Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 23

A company distributes a medical device to hospitals and clinics throughout North America. The device is used in a variety of applications. One critical component of the device is its overall quality. The distributor of the device monitors quality using a scorecard that tabulates parts per million (PPM) defects and percent PPM improvement. The following measurements and scoring criteria are used:


In the most recent reporting period, two defects were found out of 10,000 inspected parts. The PPM defect rate in the prior period was 150. Update the supplier scorecard for this device using the most recent data.