CAPA for missed Sales KPI?

Golfman25

Trusted Information Resource
People use abbreviations without regard for what they actually mean. In this case, the abbreviation is "KPI" and the salient letter is "P." Periodic sales numbers is not a process. You can have a goal or objective for annual sales, but that doesn't mean it's a process. The attachment of a KPI in this case is entirely inappropriate.

When a goal is established, another thing that people forget is that there must be a plan for achieving it. Unless there's a clear and objective path to the goal, and everything in the way of resources has been provided for achieving it, it's doomed to failure.

No goals/objectives should be established for anything that the company doesn't have complete control over.

Finally, you have an incompetent auditor.
While completely true, a lot of us monitor sales levels as a way of monitoring the business. It's like the gages on your car -- shows if everything is "normal." These measurements will get lumped in with everything else, and that is where problems can occur for the unreasonable or incompetent.
 

Jim Wynne

Leader
Admin
While completely true, a lot of us monitor sales levels as a way of monitoring the business. It's like the gages on your car -- shows if everything is "normal." These measurements will get lumped in with everything else, and that is where problems can occur for the unreasonable or incompetent.
Nothing wrong with "monitoring" sales, but that doesn't mean that assigning a KPI is a good idea.
 

Mike S.

Happy to be Alive
Trusted Information Resource
Any organization that “needs” an internal audit nonconformity to react to vanishing sales is more dysfunctional than anyone could save it from itself.
I'm not sure "vanishing sales" is an accurate descriptor of what is happening.

Given any 2 numbers, one will be larger and one will be smaller. That doesn't mean that a change of any significance took place.

Maybe last year was $10 M and the "target" for this year was $11M but they saw $9.8M. IMO that's not vanishing sales and depending on the larger context it may be a case where taking no action is appropriate.
 

Jim Wynne

Leader
Admin
I'm not sure "vanishing sales" is an accurate descriptor of what is happening.

Given any 2 numbers, one will be larger and one will be smaller. That doesn't mean that a change of any significance took place.

Maybe last year was $10 M and the "target" for this year was $11M but they saw $9.8M. IMO that's not vanishing sales and depending on the larger context it may be a case where taking no action is appropriate.
It's possible for two numbers to be equal. The important thing in business is net profit, and it's altogether possible that gross sales can increase while net profit decreases. In any event, if a target for improvement is identified, there must also be a plan for achieving it, and I mean a plan that is a bit more complex than "Sell more things."
 
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Big Jim

Admin
Nothing wrong with "monitoring" sales, but that doesn't mean that assigning a KPI is a good idea.

I completely agree that sales would make a good KPI for any of the ISO 9001:2015 requirements. Mainly because the standard doesn't get into finances. It might make a good business KPI, just like profit, but has no place in monitoring a quality management system.

A couple of better potential KPIs for the sales function could be customer satisfaction and on-time delivery / shipment.
 

Big Jim

Admin
As for issuing a nonconformance for missing your target, I can't find anywhere in the standard that requires that. A case could be made for missing a target and not doing anything about it based on 4.4 c and g. Basically c says that you need to have a method of monitoring and measuring your processes and g requires that you evaluate the need and implement changes determined to ensure the processes achieve their intended results.

Indeed, AS9100D (I know, not the standard we are talking about here, but interesting in their approach) auditors are required to write nonconformances if you don't meet your goals and are not doing anything about it.
 

ChrisM

Quite Involved in Discussions
Going back on one of the points made above, for me the key "letter" in KPI is "I", for indicator. It's not a target, looking at Sales figures for example, but an indication of how something is performing. A fall in sales does not directly affect product quality (it may be as a result of product quality declining but that would hopefully be picked up by complaints, returns etc).
How many significant nonconformances were issued in 2020, for example, when a huge number of businesses lost sales due to restrictions brought about by covid-19?
Target setting gives you something to aim for, but just because you miss the target does not mean that there is a quality system nonconformance.
 

Jim Wynne

Leader
Admin
Going back on one of the points made above, for me the key "letter" in KPI is "I", for indicator. It's not a target, looking at Sales figures for example, but an indication of how something is performing. A fall in sales does not directly affect product quality (it may be as a result of product quality declining but that would hopefully be picked up by complaints, returns etc).
How many significant nonconformances were issued in 2020, for example, when a huge number of businesses lost sales due to restrictions brought about by covid-19?
Target setting gives you something to aim for, but just because you miss the target does not mean that there is a quality system nonconformance.
I highlighted "process" in the context of this thread. In another context, "key" might be the right thing to highlight. Annual sales is not a process, ergo assignment of a KPI is inappropriate.
 

Ed Panek

QA RA Small Med Dev Company
Leader
Super Moderator
Precisely. If sales goals could be met merely by having a meeting to agree on it as a KPI, everyone would be billionaires.
 
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