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Quality Objectives - Is this an audit nonconformity?

Is there an audit nonconformity in the situation described?


  • Total voters
    40
  • Poll closed .

Crusader

Trusted Information Resource
#21
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

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

FINDING: Exactly what the organization has done that contradicts the commitment in the requirement.
I am the odd-girl out I guess. I disagree with everyone and I'd write 'em up. I thought about the quality policy and that I would need to see it, but if the policy falls in line with the 5 objectives then it still does not meet the intent of clause 5.3, 5.4.1, and 7.1. JMHO. :bigwave:

The Requirement: The organization has commited itself to improving the company and environment, not the product, quality system, etc. IMO.
My Finding: The organization has defined objectives and a quality policy that do not meet the full intent of Clauses 5.3, 5.4.1, and 7.1. (Ex. quality objectives needed to meet requirements for the product.)

Note: Improved sales/profits are not always an indication of product requirements that have been met. IMO
 
Last edited:
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C

ccochran

#22
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
 
M

Madfox

#23
One can never equate sales and profitability to customer satisfaction!

I run J. Schmuckatelli Registrations and cut my auditors' pay 50%.
Then I hire a bunch of ex-used car salespeople and telemarketers.
Sales up, profits up...no problem! (Sound familiar?)

Also, beware of capacity.
I've often seen many a scion run a business into the ground taking on too much business. Go into overtime mode, then there goes the margins.

Boeing recently turned down business...too busy.

The Madfox
 
B

Bill Pflanz

#24
Personally, I do not think there is anything more than an insignificant nonconformance of mislabeling the objectives. But, based on the facts provided, there could be uncertainty about whether management wanted these business objectives to be the quality objectives. By writing a nonconformance, it will allow management to review the objectives along with the quality policy and do what corrective action is necessary including new communication. If I wanted to write up a noncoformance, here is how I would do it.

Requirements: Section 4.2.1 requires documented statements of quality objectives.

Finding: The quality objectives described by the auditees are listed in the quality manual as business objectives.

Before I would write any nonconformances concerning whether they are measurable, are being properly reviewed and making progress and are consistent with the quality policy, I would want the corrective action completed on the above finding. Anything else would be an assumption on your part about the requirement.

Bill Pflanz
 

Crusader

Trusted Information Resource
#26
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
After looking at your original post again, I see that the way you have requested us to make a decision is not based on what the ISO 9001 Std requires, but you are asking us to make a decision based upon what the org committed to and whether or not the org derailed from that commitment. So, in that case, there would not be a nonconformity. The org followed what they said they would do and have documented where they fell short and how they are addressing it.
 
C

chergh - 2008

#27
So where is your evidence to support your view that increasing sales and profit are not valid quality objectives.

What's 'quality' about increasing profits or sales?
Whats quality about decreasing rework?

This could be achieved by changing specs, biased measuring equipment or employing staff that don't care.

Any objective whether it be reducing rework, reducing unscheduled tool downtime, increasing yield, increasing profits or increasing sales inherets the property of what we refer to as "quality".

It's really how we go about achieving our objectives that matter and this is what in my opinion turns something into a "quality measure".

I will use sales to try and illustrate my point.

How can sales be increased?

You either need to sell more widgets to your existing customers or the same/more widgets to more customers.

Having customer requirements effectively relayed to your production, engineering and design teams helps produce a product that can be sold to a potential customer.

You can invest in further training for your sales team

You can reduce the cost of the product by sourcing a better priced supplier, perhaps by outsourcing the manufacturing, improving the inventory control system, reducing in line defects etc. Lower cost for the same quality of product seems a pretty good way of improving sales.

Sales can work with marketing departments to help improve the visbility of products to customers. I have known one salesman that used to keep a list of magazines he would see in his customers offices and if he noted magazines in common between customers he would usually be able to convince marketing to put full page adverts in those publications and it certainly seemed to work for him.

Now certainly some of these things could be the begining of a slippery slope. I don't believe that taking the view that just because there are companies that adopt these objectives and are failing for numerous reasons necessarily means these objectives cannot result in improvements to the company and its customers. I am sure there are examples of companies who state these as quality objectives and are successful, well run and produce a good quality product.

I suspect to some extent what we are actually disagreeing about here more is what "level" of objective is appropriate for a quality objective. I would consider "increasing sales" to be a high level objective where as "reducing rework" would be a lower level objective, i'm trying to use the process chart concept of high and low level as a sort of analogy here, not very good but best I can currently come up with.

I believe that including an item such as "increasing sales" can help senior management, sales, finance etc. relate a bit better to the QMS. It's how the management go about things that is important. Objectives are worthless unless their is a management team that is able to lead effectivley and to that extent objectives are in theirself completely meaningless it all comes back to how we achieve the objectives.

Is there an increased risk of somebody being more willing to cut corners if these are their objectives? Probably, I've not seen any data but I would expect it to be true. But this does not invalidate the objective.

The rest of the audit is going to tell us what we need to know anyway but to raise a NC just because the company believes increase sales or profit to be a valid quality objective isn't justifiable in my opinion.

It may be a higher level objective than perhaps is normal, expected or even desirable but is it conforming? Unless anyone can provide the evidence to support that they are not valid quality objectives I have to consider it to conform to the requirments of the standard and using the likes of Ford and GM as examples does not invalidate the objectives.
 
A

alekra

#28
I am in a mantainance assessment and the assessor will probably open a NCR due to objectives. One of our objectives is OEE that uses quality in it´s equation. The assessor argued that there should be a value for the quality (scrap). He said that a company that is worried with costs should worry about scrap.
 
C

ccochran

#29
After looking at your original post again, I see that the way you have requested us to make a decision is not based on what the ISO 9001 Std requires, but you are asking us to make a decision based upon what the org committed to and whether or not the org derailed from that commitment. So, in that case, there would not be a nonconformity. The org followed what they said they would do and have documented where they fell short and how they are addressing it.
Crusader,

Ah, but they did commit to the ISO 9001:2000 standard. Give it a go! Good commentary, by the way.

Craig
 
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