Nonconformance for Objectives and Metrics
Another of the Common nonconformances relating to the standard requirements we will discuss in this article is how Metrics and Objectives are addressed in a management system.
Objectives and Metrics
ISO 9001: 2015 requires:
4.4.1 The organization shall determine the processes needed for the QMS… and shall:c) determine and apply the criteria and methods (including monitoring, measurements and related performance indicators) needed to ensure the effective operation and control of these processes;
There are also other requirements in section 9.1.3 (Analysis and evaluation) and 6.1 (Quality Objectives and planning to achieve them) and 5.3 leadership that address setting objectives / goals and measure them.
IATF 16949: 2016 adds 126.96.36.199 Process effectiveness and efficiency, 188.8.131.52 Quality objectives and planning to achieve them, and 184.108.40.206 Monitoring and measurement of manufacturing processes: all with requirements additional to ISO 9001: 2015 for setting objectives and monitoring effectiveness and efficiency.
At the minimum for ISO 9001 an organization must identify how the processes it determines to be needed and measured for effectiveness. This does not mean that ever process needs to have a unique metric. Some metrics might be effectiveness indicators for multiple processes. This should be well established for an organization and include the actions taken if the objectives or goals for each metric is not met. This might include specific actions for some metrics and formal corrective action for others.
IATF 16949 adds requirements for specific metrics for efficiency in addition to effectiveness. In actual practice all organizations really should have 2 metrics for every process (Again, not necessarily separate or unique metrics for each). One should address effectiveness and one efficiency.
The effectiveness metric would address the quality of the process and efficiency would address the money or resources needed and how well they were applied.
A different way to explain effectiveness and efficiency would be – effectiveness is doing the correct thing for the process customer (Could be internal customer) and efficiency is doing the correct thing for the company.
A good way to think of these metrics and goals (Each metric needs a goal / objective) is like a pyramid. At the top the organization is concerned by several overall metrics such as customer satisfaction, profitability, employee satisfaction… the number of metrics grows as you move down in the organization, but they all support the top metrics. Examples of these would be goals for equipment uptime or OEE that relate to proper preventive maintenance, resource usage in manufacturing, scrap rates… these are more focused on areas and processes within the organization.
We see several different methods for documenting these metrics including listing them on each defined process or creating a matrix of all metrics within the organization. Each has advantages.
When working to develop, review, or revise metrics, one good place to start is to determine what metrics exist already, or are easy to obtain, then review the defined processes and areas of the organization. Then determine what metrics are indicators of specific processes. This can be done in a way that does not create new and additional reporting burdens for an organization. In the end an organization may choose to monitor and measure some new items based on internal needs and risks.