IAS News

Performance Metrics Strategies to Achieve a Successful, Continually
Improving Quality Management Program

By Prasanth Ramakrishnan, IAS Accreditation Officer

A top-notch quality management system regularly defines and assesses key performance metrics, combines quantitative and qualitative tools—and allows for continuous improvement. But what does that really mean?

While ISO/IEC Standard 17025, General requirements for the competence of testing and calibration laboratories requires continuous improvement of the quality management system, continuous improvement is subjective in nature and varies from organization to organization. Metrics, by their nature, can vary depending upon an organization’s goals and objectives. As well, metrics for a testing laboratory might vary significantly from the metrics defined by an inspection agency.

Regardless of your organization’s service—testing laboratory, inspection agency or other building industry service—there are some fundamental industry best practices that should be included in every quality system and technical management program to ensure continual improvement.

Define performance metrics based on the objectives and target goals for the fiscal year. Then, have a brainstorming session on the possible performance metrics that will effectively measure progress toward achieving the proposed goals and objectives.

Performance metrics can be quantitative, qualitative or a combination of both–but should include all of the following:

1. Quality System Awareness
Assessing your quality system should include an awareness of the quality policy and procedures, as appropriate. This includes understanding the effectiveness of your document control, revision and identification policies, communication among the staff, internal audits, follow-up audits and the effectiveness of proposed actions in management review meeting minutes. It should also include a clear understanding of management’s commitment toward the overall quality system implementation.

2. Technical Assessment
What are the technical capabilities of your staff? Define the level of technical competency and the adequacy of the associated training for staff. If you have equipment, make sure these critical tools are maintained and calibrated properly to ensure reliability and accuracy. Make sure maintenance records are easily retrievable and calibration records are traceable. It’s also important to assess your organization’s timeliness in meeting project deadlines and avoiding idle time in project scheduling.

3. Customer Feedback Metrics
Every organization must understand the cost of the services they provide as well as the associated timeliness in the delivery of that service. The performance metrics defined here must incorporate periodic reviews and analysis of customer feedback to make sure your organization is meeting the needs of those it serves, and the overall effectiveness of new programs to drive improvements.

4. Data Analysis Metrics
Are your data analysis measures satisfactory and appropriate? Data analysis should meet the optimum level as required by the operating standard and/or proposed target goals. The performance metrics should define whether your goals are below, above or rightly placed. The methodology used in analyzing the data collected must be simple, easy, effective and time-efficient.

5. Business Metrics
Finally, every effective quality management system must be able to track effectiveness and the commitment of management to quality business practices. Your performance metrics should track the level of attainment of business goals and objectives, employee satisfaction, customer satisfaction and financial success.

The information derived from the five basic performance metrics outlined above provides the foundation for sound, continually improving quality management practices. Set target levels for each performance metric that are dependent on a specific department’s activities. Periodically, the goals, objectives and metrics must be reviewed and corrective actions, if necessary, deployed.

These good practices will ensure the effectiveness and continual improvement of your quality management program.

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