SBS - The best value in QMS software

Quality Objective Measureables - Please Review

T

tomvehoski

#11
While ISO does not require financial measures, I do believe that quality and profit are closely linked. Bad quality will hurt profit through scrap, rework, lost customers, etc. Quality cannot guarantee profit - nothing stops you from intentionally selling things for less than they cost - but the contract review process should be used to ensure you are capable of selling something for a profit. (Ignoring the possibilities of non-profits using ISO).
 
Elsmar Forum Sponsor
H

Hunter36

#12
While ISO does not require financial measures, I do believe that quality and profit are closely linked. Bad quality will hurt profit through scrap, rework, lost customers, etc. Quality cannot guarantee profit - nothing stops you from intentionally selling things for less than they cost - but the contract review process should be used to ensure you are capable of selling something for a profit. (Ignoring the possibilities of non-profits using ISO).
I see where you are coming from, and I completely agree.

Closely linked but not correlated.

In my opinion, A correlation would reflect a positive or negative association, for instance: The statement "if we have poor product and service quality we will not be profitable" could be considered TRUE but "if we have good quality than we will be profitable" could be considered FALSE. Because as you stated, you could be selling things for minimal profit or less than cost, even if your quality and service is outstanding. If one statement is true then the other has to be also for it to be considered a correlation (am i thinking about this correctly?) For me, it was really a question of ISO requirements. Hence, I do not see how an analysis of profitability and gross margin could be reflective of quality or be considered a "quality policy"

Given the small size of our company, our president does his "state of the union" profit assessment on his own and acts accordingly. If I can keep it that way (which I believe he prefers) and not have to contribute it to my quality policies and the additional statisical analysis I already perform, it just makes a smoother QMS system from me to control.

It's really a question of necessity for documentation, as the "system" and "analysis" is in place, but separate from our QMS because I personally felt it wasn't involved with quality.

tomvehoski you have been very helpful to me today and I sure do appreciate it. :agree:
 
D

David Hartman

#13
While ISO does not require financial measures, I do believe that quality and profit are closely linked. Bad quality will hurt profit through scrap, rework, lost customers, etc. Quality cannot guarantee profit - nothing stops you from intentionally selling things for less than they cost - but the contract review process should be used to ensure you are capable of selling something for a profit. (Ignoring the possibilities of non-profits using ISO).
This is an excellent point! In the my early days in the DoD environment Cost of Quality reporting was a requirement (in all actuality the costs associated with poor quality along with the costs expended to assure good quality), and the company I worked for chose to illustrate these costs against sales figures to illustrate the direct impact against the bottom line.
 

howste

Thaumaturge
Super Moderator
#14
For me, it was really a question of ISO requirements. Hence, I do not see how an analysis of profitability and gross margin could be reflective of quality or be considered a "quality policy"
There is no ISO requirement for profitability as a quality objective, but if top management says it's one of their quality objectives, then it is. I personally think it's a good idea, because I believe that an effective QMS contributes to profitability, even if there's not a "direct" correlation.

Given the small size of our company, our president does his "state of the union" profit assessment on his own and acts accordingly. If I can keep it that way (which I believe he prefers) and not have to contribute it to my quality policies and the additional statisical analysis I already perform, it just makes a smoother QMS system from me to control.
Why would he want to "keep two sets of books" in the organization? One system for all would help to focus the whole organization on the common objectives that the business owners really want.
 
Thread starter Similar threads Forum Replies Date
N Quality Objective - Scrap Measureables ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 13
J Quality Objective for QMS prior to Certification AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 8
T Can we remove a quality objective if we decide it is not measurable? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 11
Ashok sunder What are the criteria for setting a target KPI value against a quality objective? Benchmarking 7
qualprod Is a Corrective Action Expected if a Quality Objective is not in compliance? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 38
Q Department Expansion as a Quality Objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 4
O Is the Quality Objective for Company-wide Training as >90% too high? Training - Internal, External, Online and Distance Learning 4
F Quality Objective Reference Chart Customer Complaints 4
Y Must every Process have a Quality Objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 21
W Quality Objective clarification - Requirements for "levels within the organization" Quality Manager and Management Related Issues 9
T Quality Objective related Surveillance Audit Finding IATF 16949 - Automotive Quality Systems Standard 6
N How would you approach failing quality objective measurables? Quality Tools, Improvement and Analysis 12
P Quality Objectives - How can we make our quality objective? Quality Manager and Management Related Issues 32
R Can a Quality Policy include Health and Safety as an Objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 26
P Can 'adding a new service' be a Quality Objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
P Quality Objective not being met - Nonconformance or Observation? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 22
J Internal Audit NC ISO 9001 Clause Mapping - Quality Objective Achievement Plan ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 6
S Criteria for setting a target value against a quality objective/KPI? Benchmarking 6
J Can "Compliance to ALL Requirements" be an Acceptable Quality Objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 6
I Tracking Delivery Performance - A "Quality Objective" is "On Time Delivery" Supplier Quality Assurance and other Supplier Issues 13
A Difference between a Quality Policy and a Quality Objective ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 1
D Can CPK be a good manufacturing processor?s quality objective? Capability, Accuracy and Stability - Processes, Machines, etc. 14
A Can a requirement be a quality objective? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
M Is a Sales Growth Objective a 'Quality' Objective ? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 76
C Customer Quality Objective - Mandatory to have documented inside QMS? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 7
K Seeking sample quality objective(s) for IMPEX (Import / Export) ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 3
M Vision Mission, Quality Policy, Quality Objective, Divisional Objective Misc. Quality Assurance and Business Systems Related Topics 10
J Calculating Repeat Business for the purpose of quantifying a Quality Objective ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 2
M How to define Quality Objective and How to breakdown ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 9
M Objective Tracking - Methods being used to track quality objectives ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 5
M ISO 9001:2000 quality objective vs acceptance criteria ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 1
B Quality Manager Retiring IATF 16949 - Automotive Quality Systems Standard 5
S Outsourced storage Quality Agreement ISO 13485:2016 - Medical Device Quality Management Systems 7
G Does FDA allows remote approvals of quality documentation. Is there any specific guidance on signing any quality records remotely? Document Control Systems, Procedures, Forms and Templates 1
N Guidance - Cost of Good Quality Misc. Quality Assurance and Business Systems Related Topics 2
D Quality plan for moving locations ISO 13485:2016 - Medical Device Quality Management Systems 3
was named killer Job Opportunity-Quality Engineer-Tampa Florida Job Openings, Consulting and Employment Opportunities 0
Marc Job Opportunity – Quality Assurance Specialist - Suspense 7 April 2021 Job Openings, Consulting and Employment Opportunities 0
C Requirement to link Quality Manual to ISO 9001 clause numbers? ISO 13485:2016 - Medical Device Quality Management Systems 13
normhowe "The Problem with Quality Management: Process orientation, controllability and zero-defect processes as modern myths" Book, Video, Blog and Web Site Reviews and Recommendations 2
J Quality Objectives and resources ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 11
M PSA Suppliers - CSR matrix and need the quality manual of PSA APQP and PPAP 3
A Quality Control Datasheets Inspection, Prints (Drawings), Testing, Sampling and Related Topics 0
T Quality auditor legal right to see Board meeting minutes ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 12
D Any recommendations on where to find experienced quality hires in Chicago area? Job Openings, Consulting and Employment Opportunities 3
C Budgetary cost to obtain ASME NQA-1 Quality Program Certification Quality Management System (QMS) Manuals 0
O Soft and technical skills for a VP of Quality Career and Occupation Discussions 1
P MedWatch Report from a hospital due to a quality issue US Food and Drug Administration (FDA) 5
Sidney Vianna Release of ISO 10013:2021, Quality management systems – Guidance for documented information Other ISO and International Standards and European Regulations 0
M Unique Quality Management System for 2 sites ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 5

Similar threads

Top Bottom