Common use of Statistical Techniques Clause in Contracts

Statistical Techniques. NH/IS requires the Supplier to ensure the product quality remains under control, i.e. product key indicators are stable in time and within tolerances with a small rejection rate. This latter is measured by the Statistical Performance: Ppk (cf. Appendix A.3). The Ppk is computed on the following product characteristics: • Chemical composition on key elements listed in the Alloy Specification per alloy. Every casting sample (i.e. not the cast average value) of every cast, without digit-rounding, is used in computation of Ppk. • Geometrical characteristics: slab length, width and thickness. The sampling rate will be established by the Supplier in accordance with his own Performance. The initial target is *** and has to be construed as a target only. The Supplier reports every quarter (beginning of January, March, July, and October), with Ppk graphs spanning over at least the last 8 quarters. Also an action plan is presented in case Ppk are below target.