Do sum of results of quality objectives should met a high level goal?

qualprod

Trusted Information Resource
#1
Hi everybody
At revising quality objectives, I doubt come across when evaluating results.
.
For example, I can have:
1 production error reduction
2 Increasing Sales
3 Reduce non conformities
4 increase productivity
5 Save raw material

Let´s suppose, I set goals for each objective
and at he end for the time, I evaluate them and I can met goals in all of them.
But I feel That when the goal was set, I just had in mind to improve results, save money reduce errors in production, to
sell more, etc. but...

Don´t you think that the sum of benefits should met a top level purpose?
Let´s say something like this: High level, at the end of the year to have a 30 % of profits in the company ?

I mean no to measure objectives individually but that the results of the sum of them should met the high level objective or purpose?

Please share your ideas.

Thanks
 
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Randy

Super Moderator
#2
I mean no to measure objectives individually but that the results of the sum of them should met the high level objective or purpose?
It's so simple very few people understand it and more refuse to understand and accept it and here it is.....High level objective/purpose = more $ (profit). In business everything else other than those things that can increase profit is ....
Bull.jpg
 

Enghabashy

Quite Involved in Discussions
#3
*I see it's very good to transfer Q objectives also to cost saving / profit issues , the objectives , goals /Quantitative measurable targets should be settled with the sharing of relevant production owners & top levels , ---,they are the 1st beneficiaries;

* The Q objectives , the process performance, including NCs & effectiveness assessment are inputs of management system review meetings ; the top management with executive board management should be represented also in M. sys. review.

*The cost of poor Quality is part of IATF 16949 & you can adopt it as part of NCs. Measures .
 

Sidney Vianna

Post Responsibly
Leader
Admin
#4
In business everything else other than those things that can increase profit is ....
Cheating on the engine emissions control software gave VW some profit…until it didn’t.

The idea that maximization of monetary profit as the only objective of a commercial enterprise is so archaic that I am surprised people still defend it (or attempt to).
 

qualprod

Trusted Information Resource
#5
*I see it's very good to transfer Q objectives also to cost saving / profit issues , the objectives , goals /Quantitative measurable targets should be settled with the sharing of relevant production owners & top levels , ---,they are the 1st beneficiaries;

* The Q objectives , the process performance, including NCs & effectiveness assessment are inputs of management system review meetings ; the top management with executive board management should be represented also in M. sys. review.

*The cost of poor Quality is part of IATF 16949 & you can adopt it as part of NCs. Measures .
Yes, and fo course to define objectives is not an easy task.
Because is neeed to make a lot of analysis.
For example:
Goal Profit= 30% of sales.
Ok for that, now the current cost of quality is going to be reduced by 10%, that contributes to the 30%
-Increasing productivity, allow to produce more, thus increasing global profit (30%) .
-Saving in raw material, increase profit in production, thus contributing to the 30%.
And so on.
And of course to define them, is needed to define action plans, with responsibles and due dates.
I have seen several systems wich define objectives alone, not "closing the circle" or individually.
I mean "closing the circle" that the sum of total benefit, will met the global Profit.

I hope is well explained.

Thanks
 

qualprod

Trusted Information Resource
#7
I agree with you, the idea is to reduce costs, by improving machine performance, getting low raw material prices, more
focus on productivity by the operators but without sacrificing Quality.
 

Jen Kirley

Quality and Auditing Expert
Leader
Admin
#8
I agree with all that increasing sales/profit is not a quality goal because sales and profit can be affected by so many things. We can come up with many examples.

But top management loves to talk in terms of money. So there are a number of calculators in the attachments, specifically to quality costs in the thread How to Calculate the Cost of Poor Quality (COPQ).

Watch out for poor quality when trying to reduce the amount spent on raw materials - other concerns when chasing low prices could include poor on-time delivery and unreliable availability. So you might hurt yourself in one goal while trying to achieve another one.

How productivity is defined will help determine how that is calculated. Other calculators can be found here. I didn't see my Master Scorekeeper II in the list, so I attached it here.

Lastly, you will need to keep organized. I attached a copy of my old project planner in the thread Old QMS... NEW QM.. I don't know where to start.

I hope this helps.
 

Attachments

Randy

Super Moderator
#9
Cheating on the engine emissions control software gave VW some profit…until it didn’t.
Yep and their decisions to do so didn't end up increasing profit did it? You've shown me to be correct assuming you'd demonstrate my incorrectness.

If we switch our focus to reducing costs we may reduce quality.
Therefore another bad decision causing a potential decrease in profit.


The idea that maximization of monetary profit as the only objective of a commercial enterprise is so archaic that I am surprised people still defend it (or attempt to).
If you're correct, then what is the primary mission of business? Business isn't in business to wake up in the morning with a warm fuzzy feeling.
 

Sidney Vianna

Post Responsibly
Leader
Admin
#10
You've shown me to be correct assuming you'd demonstrate my incorrectness.
If you're correct, then what is the primary mission of business?
The REAL primary goal of business is self-preservation; however the businesses with XXI century ethical leaders realize that their business also have a societal responsibility towards many stakeholders, what means that the financial profitability has to be balanced with the expectations for the environment, labor, ethics, safety, security, etc...An excerpt of the ISO 26000 introduction reads:

Screenshot 2022-07-31 165342.png
 
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