**2.1 Rejected parts per million (PPM) level**

PPMeq is a pointer for inward part quality by monitoring the performance of inward parts during on-going production, once parts is handed over by Component Development Materials Management (CDMM) to Supplier Quality Assurance (SQA) and procured by Supply Chain Management (SCM). This guideline sets the procedure of calculating the PPM Equivalent (PPMeq) and declaring non-conforming parts in the supplier deliveries. The suppliers' performance has assessed by the index PPM which has based only on rejection of parts at receiving stage and on line. But this index did not reflect the performance of the suppliers whose parts has mostly reworked on lines, the parts for which deviations/concessions were sought. Also much effort has been put in for segregating parts if any non-conformity has found in a lot. Some supplier parts also get rejected at the final assembly stage due to which the whole assembly faces rejection. To capture the effect of all the above conditions, a new index PPMeq has been formed.
