How do you set customer complaints KPI in parts per million?
Hi all,
How do you set customer complaints KPI in parts per million?
I was thinking to To limit customer complaint to not more than 4 parts per million (ppm) valid complaints per year.
We are manufacturing prepackaged goods (<1 Liter) and bulk items (20-1000 Liter).
Should I separate the ppm complaints in retail and bulk products?
I'm a little bit confuse on how to apply the ppm in bulk products.
ppm is a scalar (dimensionless) unit, for example your KPI might need to be equal to NC(bad/complained/rejected/disposed) litre over shipped [million] litres. Don't worry so much about the legitimacy of KPI (litre/litre; lot/lot; can/can, etc.). As long as you improve from it, you are good.
IMO, 4ppm by litre is super confident. For your input, my company ships annually 10~15 million units, about 20.000 in each batch, and the customer set 500ppm as our KPI limit.
Calculate by unit, whatever size the unit may be because your complaint will come from unit(s) from your customer. If you can back calculate historically you can set a baseline from there.
We are manufacturing prepackaged goods (<1 Liter) and bulk items (20-1000 Liter).
Should I separate the ppm complaints in retail and bulk products?
I don't see a problem with splitting your record in this way; the point is that the data needs to be useful to you, so you can track whether you have problematic trends. If it makes sense to differentiate between two categories of product for your site then this is what you should do - I don't see this as being any different to splitting out complaints into different production lines or similar.
Nonetheless you may want a way to link them to give an overview, as whilst some types of complaint may indicate there is only an issue with one product group (e.g. a problem with your bulk filler only causes issues for the bulk packs), other types of issue could be indicative of a more general site-wide / personnel problem.
We are the same - batches go out in all kinds of different quantities, sizes, amounts, etc. etc.
Our complaint level aim is below 1 per million units - and this thread has just made me question what is a unit?
So thanks for this - I will be questioning this today!
I could presume a unit is an individual item and not the packed item, and in that case we do about 4 million units per week - i would not be happy with 4 complaints per week!
Onto investigating and re-assessing.
We are the same - batches go out in all kinds of different quantities, sizes, amounts, etc. etc.
Our complaint level aim is below 1 per million units - and this thread has just made me question what is a unit?
So thanks for this - I will be questioning this today!
I could presume a unit is an individual item and not the packed item, and in that case we do about 4 million units per week - i would not be happy with 4 complaints per week!
Onto investigating and re-assessing.
I would say a "unit" is the unit quantity your customer uses that item. If they use it in 50 pound bags, versus a 1 pound bag, those are still one unit each. If you have products that go to distributors and then go onto retail used by retail consumers then it is the unit the retail consumer uses or purchases.
I would say a "unit" is the unit quantity your customer uses that item. If they use it in 50 pound bags, versus a 1 pound bag, those are still one unit each. If you have products that go to distributors and then go onto retail used by retail consumers then it is the unit the retail consumer uses or purchases.
What if the bulk items you supply is used as ingredients for retail products but the customer won't disclose how many unit of retails products produced?
If I produced 150 drums (200 kg) on a daily basis, 25 days a month, that would be 45,000 drums in a year.
if I convert this to liters = 9 million liters/year
Since this is a bulk packaging, using liters as unit is quite difficult.
So, should I use per drum basis as a unit in my complaint?
Any suggestions how many ppm should I set based on above calculations?
Thank you.
Your KPI unit should be based on what you sell to your customers. Not what they use as an ingredient for retail.
When I mentioned retail it was based on units going to retail. For example, in my company we sell individual units in retail stores, but only ship by the pallet quantity to distribution centers. Our KPI is based on the individual units in the retail store, not by the pallet going to the distribution centers.
In your case, your units would be based on the units you sell to your customer. What they do with it beyond that as an ingredient is out of your control and not really worth the time or effort to try and figure it out because you will get your complaints from your customer, not their customers at retail level.
What if the bulk items you supply is used as ingredients for retail products but the customer won't disclose how many unit of retails products produced?
If I produced 150 drums (200 kg) on a daily basis, 25 days a month, that would be 45,000 drums in a year.
if I convert this to liters = 9 million liters/year
Since this is a bulk packaging, using liters as unit is quite difficult.
So, should I use per drum basis as a unit in my complaint?
Any suggestions how many ppm should I set based on above calculations?
Thank you.
Helle,
Wants to know if the complaints registrated are received late, il means the the complaint according to january production is received on march how to calculate thje cpm?
Complaints are always received late. You can set your CCPM based on the actual production date, but your CCPM numbers will be delayed after the shelf-life of your product expires. For example, if you have 2 month shelf-life your CCPM data will always be 2 months late at least.
This is a decision the management team needs to make and decide what they are comfortable with. At my company they want real time information so we just calculate based on the months the complaints come in, not the actual production date. Plus, we don't always get the necessary information to determine the production date on the product with some general complaints / feedback.
Helle,
Wants to know if the complaints registrated are received late, il means the the complaint according to january production is received on march how to calculate thje cpm?