I have always used the term metric for a measure of process performance. Metrics - for me - are measures of characteristics of a process overtime.
Characteristics are dimensions, features, properties and functions of an individual part, event or thing that can be measured and has specification or tolerance limits. Within the specification limits the thing is acceptable and it is unacceptable when it exceeds these limits. So a metric is a measure of how one or more characteristics perform over time. Examples are:
Yield (or RTY or Defect Rate)
Cycle time
Inventory accuracy
On-Time Shipment (or delivery)
Turnaround time
Return Rate
Customer Complaints
COPQ…
Every metric should have a target (used by buyers, planners, budgets, etc. to manage the business). The target is usually one sided. (Greater than or less than) and managers should be managing to the targets. Supervisors, process engineers, technicians, equipment engineers, maintenance techs, SQEs and others are usually assigned with the responsibility of making daily adjustments, corrections and small improvements to keep the processes at target.
Objectives - for me - are those critical metrics that are either missing the target and having a substantial effect on the business (profit, sales, Customer Retention…aka “True North” in the Toyota Production System.) or that must be improved beyond what was an acceptable level to meet a new business requirement. This should be a short prioritized list. (Achievement of any improvement goal will require assigned resources as goals are not achieved through wishing, hoping or praying) We simple cannot improve everything everywhere all at once.
