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Re: Quality Objectives Ideas - Currently we have Scrap & rework, OTD, survey results,
Very interesting material and discussions.
With regard to all measurements it is importnat to understand the difference between leading and lagging indicators.
For example, financial indicators, "Increase sales by 10%" are measurable after the event.
However, to achieve the increase in sales we need other activities such as:
"Train 80% of salesforce in new widget selling techniques by 15 March."
So this is called a leading indicator and we will not achieve the 10% sales increase without first completing this task.
So an ideal set of measurable quality objectives would contain a balanced set of leading and lagging measurements.
An example for a manufacturing company could be:
Lagging indicator (financial) "Reduce warranty costs by 10%"
To achieve this we need to set up another 1 or more measurements based on leading indicators such as:
"Ensure material defect rate in final assembly is less than 2%"
"Ensure quality control checks 43% of finished product before shipping"
So the assumption is that if we achieve the leading indicators, then we will achieve the lagging goal.
To measure the time an athlete takes to run a mile is a lagging indicator
The leading indicators are the time spent training, coaching. The diet, etc.
Hope somebody finds this useful
Very interesting material and discussions.
With regard to all measurements it is importnat to understand the difference between leading and lagging indicators.
For example, financial indicators, "Increase sales by 10%" are measurable after the event.
However, to achieve the increase in sales we need other activities such as:
"Train 80% of salesforce in new widget selling techniques by 15 March."
So this is called a leading indicator and we will not achieve the 10% sales increase without first completing this task.
So an ideal set of measurable quality objectives would contain a balanced set of leading and lagging measurements.
An example for a manufacturing company could be:
Lagging indicator (financial) "Reduce warranty costs by 10%"
To achieve this we need to set up another 1 or more measurements based on leading indicators such as:
"Ensure material defect rate in final assembly is less than 2%"
"Ensure quality control checks 43% of finished product before shipping"
So the assumption is that if we achieve the leading indicators, then we will achieve the lagging goal.
To measure the time an athlete takes to run a mile is a lagging indicator
The leading indicators are the time spent training, coaching. The diet, etc.
Hope somebody finds this useful
Indeed these factors are important to consider for an organization but we cannot deny that thet can and do have an impact on company's bottom line. Therefore (at least some of) the related metrics should be tied to the bottom line (or profit, if you wish). Happy customers usually leads to more business (needs to satisfy by the system), unhappy ones lead to lost business; trends in $ volume of business with each customers could be a metric. Complaints are a form of customers expressing their dissatisfaction; the effectiveness of the related actions can be quantified financially (cost of failure, cost of prevention, cost of detection, etc). Regulatory issues & concerns can also be quantified through the 'cost' of compliance and 'cost' of non-compliance, and same goes for environmental considerations.
). Now I cannot see towns B and C but I can see the next electricity pole, have a good idea of what actions I must take to get there and I can see if I am making progress by doing what I set to do. Yeah, it sounds a lot simpler that being done ...
