How to Plan Quality Goals | How to Meet Quality Objectives | Developing Quality Goals and Objectives

This video shows how to plan quality goals and objectives. By the end, you will see how to establish meaningful quality and business objectives to comply with standards and drive continual management system improvement. Most companies develop "end-of-the-line" quality objectives such as timely shipping, warranty costs, customer complaints, etc. However, just a few businesses create quality goals and objectives for "relevant functions" or departments.

Often, a discussion of this topic goes like this:
"Sir, what is your on-time shipping objective?" an Auditor asks.
"Per our KPIs, it is 95%, Sir," the Quality Manager replies.
"Perfect," the Auditor continues, "and what is your Packaging on-time completion target?"
"All our departments target the same 95%," the Quality Manager answers.

I am puzzled by the countless businesses in various industries applying this odd school of thought to setting departmental quality objectives. How in the world can Shipping be 95% on-time when Packaging, the operation right before it, also has a 95% target? Isn't a system's capability equal to the product of its factors? If both Packaging and Shipping have 95% on-time completion objectives, the resulting performance ought to be 95% x 95% = some 90%.

To resolve this paradox, we have two options:
Assign targets to the departments in a way that the final result of the entire process mathematically equals your goal or
Set targets to 100 percent and deal with the variances to improve your process capabilities continually!

The first option is a nightmare! I can guarantee that this route will quickly give everybody severe headaches, so think twice before considering. We have now met our objective: we learned how to plan quality goals for "relevant functions."

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