Product development defect rate in parts per million

This measure calculates the average manufacturing defect rate in parts per million for a company's primary products (during development; i.e. not yet fully finalized finished goods). It is part of a set of Process Efficiency measures that help companies optimize the performance of their "develop products and services" process group by minimizing waste and refining resource consumption.

Benchmark Data

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Measure Category:
Process Efficiency
Measure ID:
105249
Total Sample Size:
662 All Companies
Performers:
25th Median 75th
- - -
Key Performance Indicator:
No

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Compute this Measure

Units for this measure are parts per million.

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Average product development defect rate in parts per million

Key Terms

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Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

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Cross Industry (7.3.1)

  • 2.3.1 - Design and prototype products and services (19993)
    • 2.3.1.1 - Assign resources to product/service project (10083)
      • 2.3.1.1.1 - Identify requirements for product/service design/development partners (19994)
    • 2.3.1.2 - Prepare high-level business case and technical assessment (10084)
    • 2.3.1.3 - Develop product/service design specifications (10085)
    • 2.3.1.4 - Develop user experience design specifications (16813)
    • 2.3.1.5 - Provide warranty-related recommendations (16817)
    • 2.3.1.6 - Document design specifications (10086)
    • 2.3.1.7 - Conduct mandatory and elective external reviews (10087)
    • 2.3.1.8 - Design products/services (19995)
      • 2.3.1.8.1 - Design for manufacturing (16819)
      • 2.3.1.8.2 - Design for product servicing (16820)
      • 2.3.1.8.3 - Design for re-manufacturing (16821)
      • 2.3.1.8.4 - Review product troubleshooting methodology (16822)
      • 2.3.1.8.5 - Design and manage product data, design, and bill of materials (16818)
      • 2.3.1.8.6 - Design for product upgrades (16823)
    • 2.3.1.9 - Build prototypes/proof of concepts (10088)
    • 2.3.1.10 - Develop and test prototype production and/or service delivery process (10098)
    • 2.3.1.11 - Eliminate quality and reliability problems (10089)
    • 2.3.1.12 - Conduct in-house product/service testing and evaluate feasibility (10090)
    • 2.3.1.13 - Identify design/development performance indicators (10091)
    • 2.3.1.14 - Collaborate on design with suppliers and external partners (10092)
  • 2.3.2 - Test market for new or revised products and services (19996)
    • 2.3.2.1 - Prepare detailed market study (10093)
    • 2.3.2.2 - Conduct customer tests and interviews (10094)
    • 2.3.2.3 - Finalize product/service characteristics and business cases (10095)
    • 2.3.2.4 - Finalize technical requirements (10096)
  • 2.3.3 - Prepare for production/service delivery (19997)
    • 2.3.3.1 - Design and obtain necessary capabilities/materials and equipment (10099)
    • 2.3.3.2 - Identify requirements for changes to manufacturing/delivery processes (10097)
    • 2.3.3.3 - Request engineering/process change (11418)
    • 2.3.3.4 - Install and validate production/service delivery process (10100)
      • 2.3.3.4.1 - Monitor initial production runs (11417)
    • 2.3.3.5 - Validate launch procedures (19998)