Quality Performance. If the failure rate of the Portal Measurement Module exceeds specified limits, (e.g. as per Section 3.5) and/or the Philips field failure rate is higher than the expectation (i.e. for Portal Measurement Module less than 4% the first year with a decrease to 1% the second year), Diametrics commits to initiate an SCAR, DAR or CAR driven corrective action project for quality / reliability improvements on Portal Measurement Modules (material, processes, subassemblies) effective per the SCAR or CAR. The goal for the Portal Measurement Module is not to exceed an annual failure rate (AFR) of 4% the first year with a decrease to 1% the second year for the Portal Measurement Module within a one year rolling period starting when the contract becomes effective: AFR = # units failed/ #units shipped by Philips (annualized) Diametrics and Philips will do a monthly failure clearance on a common basis before entering the numbers into the calculation.
Appears in 3 contracts
Sources: Manufacturing Agreement (Koninklijke Philips Electronics Nv), Manufacturing Agreement (Diametrics Medical Inc), Manufacturing Agreement (Koninklijke Philips Electronics Nv)