Differences between Quality Objectives and Business KPI's

G

glenn0004

#1
From comments made by our external auditor this year, I need to question if there is a difference between Quality Objectives and Business KPI's. In the past we have considered these to be seperate items, our objectives have been based around improvements to the QMS, our KPI's target the performance of the company. This year, our external auditor was interested in our Service Response KPI's (response times to customer requests for service) as these indicated levels of sucess in meeting customer requirments and as such should be considered as a Quality Objective. Im happy that some KPI's could be a measure of process performance. Any sugestions?
 
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J

John Mann

#2
Re: Quality Objectives "V" Business KPI

I would say they are certainly different things. You will probably have many more KPIs than Quality Objectives. Quite possibly you might decide to have a Quality Objective to improve a particular KPI, but that doesn't mean they are the same thing.
 

sowmya

Involved - Posts
#3
KPI and Quality objectives are different. All KPIs need not have a link to quality objectives. But without KPI, it is difficult to achieve quality objectives.

service response can be measured in following ways.
1. time taken to attend / complete the service call
2. time spent in service
3. recurrence service call.
 

insect warfare

QA=Question Authority
Trusted Information Resource
#4
From comments made by our external auditor this year, I need to question if there is a difference between Quality Objectives and Business KPI's. In the past we have considered these to be seperate items, our objectives have been based around improvements to the QMS, our KPI's target the performance of the company. This year, our external auditor was interested in our Service Response KPI's (response times to customer requests for service) as these indicated levels of sucess in meeting customer requirments and as such should be considered as a Quality Objective. Im happy that some KPI's could be a measure of process performance. Any sugestions?
Have you taken a look at these threads? It seems that this topic has been debated before, and may give you the answers you're looking for....

Using KPI's (Key Performance Indicators) as Quality Objectives
Objectives and KPI's (Key Process Indicators) S 5.4.1 of ISO 9001
KPI (Key Performance Indicators) vs. Objectives
Are KPIs (Key Performance Indicators) considered as Quality Objectives?

Brian :rolleyes:
 

Big Jim

Super Moderator
#5
This is a cut and paste to my response in the last thread listed above. It still fits.

KPI (Key Performance Indicators, often called Key Process Indicators within ISO companies), are most certainly closely related to quality objectives if they are not the same as quality objectives. They serve similar if not the same purposes, and have nearly the same if not the same attributes.

Many companies line their KPI up with their quality objectives.

Now more specifically to your question, you get to declare what your quality objectives are. However, they need to be at relevant levels and functions within the organizations (sounds a lot like a definition of a KPI right there).

What is common is to have a few, maybe three to six, quality objectives, but to have many more KPI.

KPI tracking is a common way to answer element 8.2.3 (Monitoring and Measurement of Processes).

There are a couple of good indications about KPI in the standard. Note 1 in element 4.1 provides guidance on what your processes are.

8.4 provides requirements about the metrics to track, pointing out that you need to as a minimum determine, collect, and analyze data concerning four main topics, customer satisfaction, product quality, process performance, and supplier performance.

My recommendation is to look at your existing KPI, whatever they may be, from whatever management dashboard they exist in, and choose the four that best provide overall answers to the topics from 8.4 and call them your quality objectives. Share these, and their results, with all employees to help meet 6.2.2 d.

Next, once you have determined what your core processes are from 4.1, find a KPI (including those you have selected as quality objectives) to line up with each core process to help you answer 8.2.3. There is nothing wrong with having several indicators for any one process, and the additional ones could be called simply indicators, or KPI, your choice.

No, you do not need to find all the KPI and include them in your declared quality objectives.
 

Mikishots

Trusted Information Resource
#6
From comments made by our external auditor this year, I need to question if there is a difference between Quality Objectives and Business KPI's. In the past we have considered these to be seperate items, our objectives have been based around improvements to the QMS, our KPI's target the performance of the company. This year, our external auditor was interested in our Service Response KPI's (response times to customer requests for service) as these indicated levels of sucess in meeting customer requirments and as such should be considered as a Quality Objective. Im happy that some KPI's could be a measure of process performance. Any sugestions?
All KPIs are metrics, but not all metrics are KPIs. KPIs should be actionable; if they are not actionable, you cannot use them to achieve anything. Don't measure something as a KPI that you can't change with specific actions.

KPI's are metrics that are outcome-oriented (are directly tied to an established ojective), are graded (have defined levels that grade the gap between the target and the actual values you're getting), and have at least one time-sensitive target value.
 

insect warfare

QA=Question Authority
Trusted Information Resource
#7
This post contains an attachment that I think helps make the connections between objectives and KPI's using a linear but practical thought process. I've found it helpful in making the distinction....

My thanks to Howste for posting.

Brian :rolleyes:
 
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