How to Set Foundry Quality KPIs: PPM, OTD & DPPM

A realistic playbook for PPM, DPPM, OTD, and COPQ in iron castings (foundry quality KPIs). Get clear formulas, target ranges by industry/complexity, and YB Metal quality gates—even before you RFQ.

TL;DR — realistic targets you can buy against

  • PPM (external) after stabilization:
  • Industrial (non-auto): 800–2,500 PPM typical; ≤800 PPM for simple parts.
  • Automotive (PPAP L3, mature): ≤500–1,000 PPM common; best-in-class ≤300 PPM.
  • DPPM (delivered defect parts, often “line-stop” level): target ≤200–500 DPPM (industrial), ≤50–200 (auto).
  • OTD (on-time delivery): ≥95–98% (define window, e.g., −0/+3 days).
  • COPQ (cost of poor quality): track internal + external; agree unit costs for returns/rework upfront.

Definitions & formulas (agree the math first)

KPIWhat it measuresFormulaNotes
PPM (Parts Per Million)Nonconforming parts shipped per millionPPM = (Nonconforming parts ÷ Parts shipped) × 1,000,000Use customer-found defects; log time window (30/90/12-mo)
DPPMDefective parts per million (failed at customer)Same as PPM but exclude minor concessionsOften stricter—ties to line-stops/field returns
DPMODefects per million opportunitiesDPMO = (Total defects ÷ (Units × Opportunities)) × 10^6Use when one part has multiple defect opportunities
OTD% of shipments on or before promiseOTD = On-time shipments ÷ All shipments × 100%Define window (e.g., ReqDate −0/+3 d); partials count?
COPQ$$ impact of poor qualityCOPQ = (Scrap + Rework + Returns + Warranty + Expedite)Agree cost table: handling, freight, sorting, line-stop fee

Benchmarks by segment & complexity

Segment/part typeComplexity exampleStabilized PPMDPPMOTD
Industrial iron castingsPump/valve bodies, brackets800–2,500200–50095–98%
Auto powertrain (PPAP)Machined housings≤500–1,000≤50–20097–99%
New ramp-up (first 3 months)Any2,000–5,000500–1,00090–95%
Thin-wall / many coresCompressor covers, complex housings1,500–3,500300–70094–97%

Use these as starting targets; lock the final numbers after pilot + PPAP/FAI.

What drives the numbers (and how to move them)

  • Design window: uniform sections, adequate fillets, min wall per process → fewer inherent risks.
  • Process capability: controlled melt/sand KPIs, robust gating/feeding, ISO 8062 CT realism.
  • Inspection depth: FAI + CMM/3D scan on criticals; sampling scaled to risk.
  • Supplier logistics: stable batch sizes, pull signals, route lead times → better OTD.
  • Feedback speed: 8D discipline on escapes; closed-loop corrective actions within 10 working days.

YB Metal quality gates (what we commit to)

  • Incoming/base: spectrometer per heat; sand KPIs (AFS GFN, moisture, LOI); nodule count/shape for ductile.
  • In-process: pour temp window; inoculation logs; yield/scrap Pareto; SPC on critical dims where needed.
  • Final: FAI + CMM on PPAP lots; Brinell per batch; leak/NDT as specified; traceability (heat/batch/serial).
  • KPI reporting: monthly PPM/DPPM/OTD dashboard; 24-h containment on escapes; 5-Why/8D with evidence.

Minimize movement with the right machining order

  • Symmetric removal when feasible; avoid finishing around trapped stress.
  • Criticals last: sealing faces/bores after bulk hog-out.
  • Probe checkpoints mid-cycle; alarm if drift exceeds control limits.

Sample KPI targets you can copy into the SQA

  • Scope: Gray/grey & ductile iron castings, green/resin/shell processes
  • Window: Rolling 90 days; reset upon engineering change or new tool release
  • Targets:
  • External PPM ≤ 1,200 (industrial); DPPM ≤ 300
  • OTD ≥ 96% (Required Date −0/+3 days; partials pro-rated)
  • COPQ reporting monthly; escape response: 24h containment, 10-day 8D
    Verification:
  • PPAP L3 at SOP; FAI + CMM on criticals; sampling per AQL/RQL agreed

Converting KPIs into cost (COPQ quick math)

ScenarioExample assumptionRough cost impact
Sorting at customer1,000 pcs / 2% suspect / $0.25 per piece sort$500
Return freight + rework200 pcs × $4 freight + $6 rework$2,000
Line-stop fee1 hour stop @ $5,000/hr + team time$5,000+

Data hygiene (so KPIs are fair)

  • Separate engineering change fallout vs process escapes.
  • Freeze denominators (what counts as “shipped” or “on-time”).
  • Keep one source of truth (shared dashboard), one calendar for holidays/Incoterms.

FAQs

PPM counts nonconforming parts found at the customer; DPPM is often stricter—defective parts that truly fail use, typically tied to line-stops/returns.

Yes, but expect higher initial PPM. Use pilot runs + PPAP to set final numbers and reduce risk.

Use DPMO when one unit has many defect opportunities (e.g., multi-feature housings). For supplier scorecards, PPM/DPPM is simpler.

Common windows are −0/+3 or −2/+5 days. Pick one per logistics reality and write it into the SQA.

Containment within 24 h, root cause and corrective actions within 10 working days is a solid baseline.

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