In order to meet and improve customer satisfaction it’s essential to monitor and measure performance by using different indicators. Performance indicators are tools used for determining how and to what degree an organization is meeting guidelines, policies, objectives, requirements and targets set in their ISO 9001 QMS.
Note: These performance indicators are set by the organization and they vary from one organization to another.
Each organization must decide which performance indicators are more suitable to the nature of their industry sector and their objectives.
What should be considered is that these indicators must be measurable and achievable. They must refer to the system’s critical processes, they must accurately represent the target to be measured, and they should be quantifiable, cost-effective, reliable and allow management to know the information in real time.
Below, the critical areas to be measured and some examples of indicators are mentioned.
Cost indicators are performance indicators that evaluate the activities that consume economic resources in different processes. For example, the spend on energy consumption or other overhead costs, the percentage return on investments, and the percentage costs of carrying out correcting errors are all cost indicators.
Time performance indicators measure the time consumed in an activity or process, and considers the time from the beginning to the end of the selected process or activity.
- Percentage number of products or services delivered on time.
- Percentage number of products or services delivered late.
Productivity performance indicators measure the efficiency of resources in the operation. For example, the percentage of downtown a particular machine or process experiences.
Quality performance indicators calculate the effectiveness in the development of activities or processes, delivering results based on the number of errors, number of perfect and flawless deliveries.
- Percentage number of products or services needing rework.
- Percentage of customers ‘very satisfied’.
Remember, performance indicators are set by the organization and they vary from one organization to another, and while these indicators may vary, they should serve as a tool for improving the quality of decisions regarding the processes, and the ISO 9001 QMS itself.