Quality Objectives - Is this an audit nonconformity?

[dbzman]

I’m afraid that I am getting in on this discussion late so my comments may have been mentioned before. I apologize if this is true.

First, the standard says about Quality Objectives:

“Top Management shall ensure that quality objectives, including those needed to meet requirements for product [see 7.1a]] are established at relevant functions and levels within the organization. The quality objectives shall be measurable and consistent with the quality policy.”

Now, do the company’s quality objectives meet this?

You and a partner are performing an ISO 9001 audit on a medium-sized company that manufacturers widgets. The company has developed and deployed 5 quality objectives:
1. Improve sales by 40%
2. Improve profit by 20%
3. Reduce energy consumption by $1 million
4. Reduce loss time accidents to 0
5. Reduce product rework to 0.2% of total production

Your auditing reveals more facts regarding these objectives:
*** The company does not call their quality objectives by that name. They are called business objectives, and their quality manual defines them as such.
*** You interview 15 people in various departments, and all of them are able to describe the objectives and exactly how they contribute to them in their jobs.
*** Records of management review indicate that the objectives are covered and progress is reviewed.
*** The company has made improvements in 3 of the objectives in the past year. Specific plans are in place to improve the others.

1. Are any of these ties to the product? (Rework?)
2. Are they established at relevant functions and levels within the organization? (Employees are aware so maybe they are established?)
3. Are they measurable? (All have measures associated with them)
4. Are they consistent with the quality policy? (Haven’t seen it yet so don’t know)

I do not want to complicate things when I perform an audit because I believe that customer satisfaction and market share/profits are the reason that we audit. Does this satisfy customer and make us money while meeting the standard. With the info that I have seen I would not write a finding for this.
Business Objectives vs. Quality Objectives, what does it matter if they are being done?
Write an Opportunity to correct this discrepancy and go on.

WOW, I think I said too much!

 

[ralphsulser]

I do not want to complicate things when I perform an audit because I believe that customer satisfaction and market share/profits are the reason that we audit. Does this satisfy customer and make us money while meeting the standard. With the info that I have seen I would not write a finding for this.
Business Objectives vs. Quality Objectives, what does it matter if they are being done?
Write an Opportunity to correct this discrepancy and go on.

I agree with this statement. Business objectives contain quality, and environmental system objectives.
Many here on the Cove have said that the quality systems should be re-named as business systems. If your customer is happy and you are complying with the standard, making improvements, and you are making a profit what more do you need. You sure don't need some outside auditor trying to justify their existence.

 

[Stijloor]

Have we reached a final conclusion?

Stijloor.

 

[Jim Wynne]

Have we reached a final conclusion?

Stijloor.

Yes: the poll is two years old and should be closed.

 

[LUV-d-4UM]

Observation: I would ask for the "Quality Policy" then determine if indeed the Quality Policy is linked to the Quality Objectives. If these two are not linked, then I might consider it a non-conformance based on the SHALL of ISO9001:2008.

 

[LUV-d-4UM]

Thanks for everyone's fine responses. None of the folks who believe these aren't appropriate quality objectives have taken me up on my challenge. Write the nonconformity! If you need more information, just let me know. If you think you can write the nonconformity, please use this format:

REQUIREMENT: Exactly what they organization has committed itself to doing.

FINDING: Exactly what the organization has done that contradicts the commitment in the requirement.

Craig

I just discovered this while looking for EBSC. I responded by calling it an Observation because I needed more information. However, since you ask to write a nonconformity, here it is based on what is given:

5.4.1 Quality objectives
Top management shall ensure that quality objectives, including those needed to meet requirements for product
[see 7.1 a)], are established at relevant functions and levels within the organization.

The company has developed and deployed 5 quality objectives:
1. Improve sales by 40%
2. Improve profit by 20%
3. Reduce energy consumption by $1 million
4. Reduce loss time accidents to 0
5. Reduce product rework to 0.2% of total production

Nonconformance: The establishment of quality objective is not effectively implemented
Evidence: The company’s 5 quality objectives are not established at different levels of the organization.

 

[JoShmo]

The company has developed and deployed 5 quality objectives:
1. Improve sales by 40%
2. Improve profit by 20%
3. Reduce energy consumption by $1 million
4. Reduce loss time accidents to 0
5. Reduce product rework to 0.2% of total production

The first 4 aren't even quality objectives!

 

[Jen Kirley]

The first four are business results, not quality objectives.

The problem is, they can be achieved by so many means not having to do with quality. Like profit: the current news is filled with such an example.

Objectives should reflect the outcomes of actions taken to meet the expectations of customers, and perhaps other relevant interested parties (looking forward to 2015 version).

An objective of quality can include things like % yield or first-time pass rate. This is a recognition of keeping cost of poor quality low, as it can indeed impact profit. An organization can even declare a cost-of-poor-quality target, but that would require set up and diligent maintenance of a monitoring and measurement system to capture that, and I suspect your organization's top management is not ready for that.

 

[Sidney Vianna]

The problem is, they can be achieved by so many means not having to do with quality.

It's even worse; many times, in order to increase sales and profits, organizations shortcut processes which lead to product failures and customer dissatisfaction. In other words, SOME business objectives, when poorly managed, will actually negatively impact quality.

Anyone who thinks any business objective is, automatically, a quality objective does not understand what a quality objective is.

 

[Jen Kirley]

It's even worse; many times, in order to increase sales and profits, organizations shortcut processes which lead to product failures and customer dissatisfaction.

Anyone who thinks any business objective is, automatically, a quality objective does not understand what a quality objective is.

Exactly: a case in point is laying off the highest paid personnel, who also happen to be the most experienced and often possess knowledge in detail that can't be included in procedures... the results can be catastrophic and very difficult to recover from.