Determining and Defining Measurable Objectives in ISO 9001:2000 Clause 5

E

energy

#1
Measurable Objectives

As we begin to look at "Measurable" objectives as part of Clause 5 in the new standard, I find very little examples of what other companies use as objectives that are measurable. Is that because they are all so different? Individualized? The Guidelines offer many choices, but with my limited exposure to the "Business" (No problem with Audit Results, N/C's, Quality Stuff), it has been frustrating to get the information from Management that they routinely use to measure the health of the Company. (Which becomes the Management System). They are obviously concerned with the bottom line. I got some great ideas from Al D's input. I'm looking for more examples of what other companies use as objectives and the method used to measure them. The inability of Management to provide the MR (Me) with this information means that profit is all they look at. Any help out there?
Al D, Thanks for the assistance. It may be the only thing I can use.

Marc, I searched the files for this type of reference and come up empty. :eek: An aside-"For the nosy folks out there..." I represent that remark!:ko: :smokin:
 
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SteelMaiden

Super Moderator
Super Moderator
#2
energy,

Doing a start-up myself, I can certainly identify with what you are going through. Sometimes management just doesn't really understand what an objective is. When I first got everyone together and told them we needed to work on measureable objectives for the company as a whole, and the supporting functions, I got the same answer from everyone. 100% prime.

A terrific goal, but obtainable, no. Not in our industry we lose a certain percentage just to head and tail, Industry wide if you run 95% prime you are great. We run 98-99 a lot of times. Not bad, but hey I still don't really feel it's the only measurement.

We have gone back to the drawing board, and are trying to come up with a more balanced list that contains both items that pertain to our business culture, as well as the more traditional % prime, % on time delivery, % claims on sales $.

This is probably not what you were really looking for, but I just wanted to point out it is a common problem.
 
E

energy

#3
It helps

SteelMaiden,

It is a help. My boss asked me to talk to my "ISO Buddies on line",
(he always catches me reading posts and sometimes reads just enough to walk away), and see what kind of input I can get.
The fact that I'm not alone in this is comforting because I don't feel too much like a idiot. Just a little:rolleyes:
What exactly is "Prime"?
It's Friday and activity drops off here. I wonder why?:biglaugh: :smokin:
 
Last edited by a moderator:

Kevin Mader

One of THE Original Covers!
Staff member
Admin
#4
This is a good question for thought. It leads to something I have been researching on for a while now. It is a company matter of Knowledge and Know-how.

What are key measures in an organization? Are they different? Are there standard or common measures?

If we look into those processes that add value to the Customer, the Organization, the Shareholder or any other component of the System, we find that they are sometime mutually exclusive and sometimes inclusive. Remember: each component is aiming for Value, but value statements vary (i.e., the customer does not value profit, but the organization and shareholder do). My suggestion would be to find those items that are inclusive to two or more of the components in a System (you define the Size and Scope of your System). This will optimize your resources. As I mentioned earlier, Profit is not a value the Customer is after (unless he in turn sells the product to someone else). Profit is important to the Shareholder and Organization. But do they see it the same way? The shareholder sees it as a means to pay down debt incurred and as ROI. The Organization sees it as a means to grow the business and as working capital. What measure would serve both or what role does Profit play in individual measures? Create measures of importance.

The problem I have seen is that many in Senior roles lack knowledge and know-how. What is worse is that their vanity doesn’t allow them to ask for help. They don’t want to give the impression that they don’t know, so we run without key measures. We run blind. They tend to fall back on Financial Paradigms for support and soon, everything that is measured and reportable resembles something found on a monthly/quarterly/yearly statement. What do these measures mean to the warehouse manager? The WM cares about available space, ability to move materials, and other value statements. Metrics need to be designed around needs as a feedback mechanism. We will need to find a way to tie space into dollars so that every level and every value statement is addressed. Everyone speaks a similar language.

Organizations typically lack Vision and Strategic thought. As such, they lack the knowledge necessary to make meaningful metrics. Without knowing the AIM of your organizations, how will any of your metrics have significant meaning to anyone? What will you pick? Sadly, the reason why people cannot find things to measure is because organizations are Tactical in practice. They fight fires. What you measure as a result of one fire will be quickly abandoned to measure the results of another. Neither measure will last, or, have meaning. As such, I believe metrics need to Strategic in nature. It makes sense to me as Strategic needs feed into the accomplishment of the Aim of the System and the individual Aims of the Components.

Well, enough from me for now.

Kevin
 

SteelMaiden

Super Moderator
Super Moderator
#5
Energy,

"It's Friday and activity drops off here. I wonder why? "
Just wondering, you sly dog, is that activity or productivity...;)

Prime is the good stuff...if it is not prime, it is secondary (non-critical applications) or reject (not a snowball's you know what).

Kevin,

yeah, what you said...somehow I just can't seem to arrange the written language in quite the way you can! Maybe it is a holdover from my high school days when my Sr. Comp teacher seemed to have it in for me? Wow, talk about a woman that could have used some strategic quality objectives! Or maybe she just needed a life, I don't know.
 
E

energy

#6
Don't look good for us!

Originally posted by Kevin Mader

This is a good question for thought. It leads to something I have been researching on for a while now. It is a company matter of Knowledge and Know-how.
Kevin
Kevin,

Well, if that's the case, we're just going to have to wing it. With your understanding of a "System" and your statement on your researching for a while, I see no light at the end of the tunnel. Until such a time as we develop the knowledge and Know-How, I'll go with anything I get. Are you happy with your measurables? If I may be so bold:rolleyes: what are they? I see how hard it is, what it should be. Aims, strategies and all that. Here's what I have right now in the mill:

Labor vs % Sales
Tooling
EmployeeTurnover%
Absenteeism
Injury Cost
Total No. of Injuries
CAR's
On time Deliveries to Customer
On time delivery from Supplier
Schedule Adherence
Expediting cost
Production Rates

Thanks Al :bigwave:
:smokin:
 

gpainter

Quite Involved in Discussions
#7
A few things we track:

Customer satisfaction
Material yield
Labor utilization
Inventory
Sales dollars per hour
Returns/allowances
 

Kevin Mader

One of THE Original Covers!
Staff member
Admin
#9
energy,

The sad truth of it is this - it changes like the wind around here. We lack strategic thinking. The cause for change is because we attach our measures to Tactical objectives and not to Strategic objectives. To worsen the situation, we also must yield to our owners who are aiming on debt reduction (their own not the company) taking the primary focus off the primary component in any System - the Customer.

Tactical thinking can lead to Strategic thinking, but it is like finding your way through the dark with your hands tied behind your back. You're bound to get bruised!

Kevin
 
J

Jamie

#10
I was doing a search for Quality Objectives and this seemed to satisfy my needs than any other I'd found.

Energy,

Where you able to get your objectives?

My question......I've informed everyone at my company about these objectives and blah....blah...blah

Well now they are all filled with questions and I can't answer them all. I'm finding that my knowledge in this area really isn't what it should be. Top Management (President & VP of Operations) are setting up Objectives for the entire company, each department will have identified their objectives all of which must be consistent with the QP. They are all asking me for examples and I'm having a time giving them. I've passed along some of the suggestions previously posted within this thread but am still coming up shorthanded for our Shipping Dept.

Our Shipping/Receiving Dept. Supervisor came to me today and said she's racked her brain and can't come up with an objective.

Is ther anyone out there that would be willing to share some of their objectives or any examples, as well as, their measureable tactics??????

I'm desperate here.....Any help will be appreciated GREATLY!!!!!

Thanks in advance!:bigwave:

Jamie
 
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