Wednesday, June 5, 2013

Quality Objectives


ISO 9001 segment 4.2.1 General states that the quality management system documentation must include documented statements of quality objectives.  It leaves it to management to determine what those objectives are.
Quality objectives should be in alignment with the quality policy, so it’s important to decide what the organization’s quality policy is.  For each QMS process, quality objectives should be established.  The objectives should be SMART.  That is Specific, Measurable, Achievable, Realistic and Timely.

For example, consider a quality policy that states:  ‘We will achieve zero defects in product shipped’.  If the organization is shipping 10% defective product, a SMART objective might be: ‘Achieve a 10% reduction in defects shipped in the next fiscal year’.  It doesn’t reach zero defects, but the objective heads in the direction the organization needs to go to achieve zero defects, so it is in alignment with its objective.
Each organizational unit that can affect the quality of the product should have metrics that show whether the department is meeting goals which drive the organization toward achieving its objectives.  Metrics should measure both efficiency and effectiveness. 

Efficiency measures the amount of resources consumed.  Effectiveness measures the success of the organizational unit in achieving its objectives.  In the example above, man-hours consumed to appraise product quality might be an efficiency metric.  Number of defective units shipped could be an effectiveness metric.  Achievement goals for each metric can be established and achieved within a period.  Achievement of these goals drives the organization toward the achievement of its objective.
I like to have at least one overall metric which tells the organization how it is doing.  For manufacturing operations a metric like first pass rejection rate, or warranty return rate are meaningful metrics. 

Consider measurements which can be quantified in dollars.  One organization I worked with had 20% late deliveries.  For that organization this represented $8 million in sales shipped late to customers.
I have provided some ideas to consider when establishing quality objectives.  An external auditor will view the organization’s metrics in the light of its objectives.  Establish SMART goals that are in alignment with the organization’s objectives, and be able to show that they are being achieved.

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