Suppose a manufacturing unit has two departments, let say dept. X and Y,
Processes X1 & X2 are performed at dept. X
& Y1 & Y2 are performed at dept Y.
Now, suppose 10000 nos. of pieces gets processed during X1 process...10 pieces gets rejected...so its output is 9990 good pieces....
so only 9990 nos of pieces gets processed during X2 process...& 30 pieces gets rejected during X2 process...so the output is 9960 nos of pieces...
So only 9960 nos of pieces is carried forward for further processes at department Y.
Where again 50 pieces gets rejected at dept. Y i.e.during Y1 & Y2 processing. So ultimately 9910 nos is the good production.
Now the question is how to calculate Rejection PPM for process X1, process X2 & for department X.? How to calculate rejection PPM of Plant?
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