Performance Measurement Training
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PART II. Quality The quality measurements provide an ongoing assessment to both outside supplier quality and reduction of internal defects in the production processes. 1. Percent reduction in total cost of quality The reduction in total cost of quality would be measured on a monthly basis and typically is displayed in graph format. The elements of costs of quality measured are prevention, appraisal, internal failure and external failure. These four elements are measured monthly as a percent of sales. 2. Percent reduction in defects The reduction in defects is measured in parts per million. The measurement is defects per unit relative to the number of opportunities possible for defects to occur. Reduction in defects is measured weekly and monthly. Normally this is displayed on a trend chart and is one million divided by total opportunities times the number of defects. 3. Percent of certified suppliers Certified suppliers require, at the minimum, that the supplier's process has been certified to the point that there is no incoming material inspection required. Many companies that are working on certification certify by individual part rather than source of the part. Whichever method is used, the data should be displayed on a trend line and reviewed monthly and appropriate actions taken. 4. Percent reduction in supplier base This measurement is utilized to review improvements in quality of source of supplier. The supplier base typically is reduced by rewarding those sources that continuously improve quality, reduce lead time, improve on-time performance and supply materials that can be delivered to the point of use. The measurement is monthly and displayed as a trend line. 5. Percent reduction in time between defect occurrence, detection and correction There are actually three measurements: defect occurrence, defect detection and defect correction. This could be measured by way of a chart located in each work area with time horizontally displayed and defects vertically displayed. Operators would record time of occurrence, detection and correction. Results are summarized weekly and monthly. STAY CONNECTED To stay current on bullet-proofed manufacturing solutions, subscribe to our free ezine, "The Business Basics and Best Practices Bulletin." Simply fill in the below form and click on the subscribe button. We'll also send you our free Special Report, "Five Change Initiatives for Personal and Company Success." Your
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