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Benchmarking: 8 Key Areas for Measuring Quality Effectively

Most of the efforts of the organization are focused on evaluating quality within specific supply chain or processes of product development. They also focus solely on results or finished products.

A Collaborative Benchmarking study was conducted by APQC. This Collaborative Benchmarking study was performed by using enterprise quality management to drive business value. The purpose of the benchmarking study was to determine how organizations trail and evaluate quality in processes throughout their businesses.

The foundational and emerging practices in quality measurement are:

  1. Align Enterprise Quality with Strategic Goals and Initiatives: The first foundational practice is aligning all quality activities with enterprise goal. The second is to accomplish senior-level commitment to enterprise quality. The first emerging practice is to drive in quality activities into main processes. The second is to completely incorporate ISO certification and auditing programs into systems of enterprise quality.
  2. Establish Structures and Resources to Get the Desired Results: The first foundational practice is to make an individual accountable for quality activities. The second is to create a strong quality group. The third is to assign appropriate resources to the quality function.
  3. Create No Mandates But Supporting Policies, Tools, and Procedures The foundational practice is that the quality function supports and evaluates quality throughout the enterprise. The first emerging practice is the quality function leads efforts of continuous improvement. The second is the quality function builds and upholds a set of standardized quality tools. The third is the quality function supervises enterprise compliance and product evaluation and/or service quality. The fourth is the quality function offering quality-specific training to employees.
  4. Select, Define, and Standardize Quality Measures Across the Enterprise
    The first foundational practice is to define and implement standard guidelines. The second is not more than 10 quality measures can be reported at the executive level. The third is to replace lagging outcome measures with leading predictive indicators. The emerging practice is to develop a quality scorecard.
  5. Allow Business Unit Leaders to Establish the Performance Targets for Enterprise Quality Measures
    The first foundational practice is to permit business unit leaders to establish targets of performance for enterprise quality measures. The second is to establish targets of performance at the business unit level and grant them at the enterprise or executive level. The third is to report quality measures.
  6. Report Quality Measures at Least Quarterly: The first foundational practice is to gather enterprise quality data. The second is to compute metrics using individual data components. The third is to report results of quality measurement. The first emerging practice is to automate collection of quality data. The second is to use a dashboard that offers thorough detail.
  7. Design Quality Measures to Focus on Value-Added Quality Activities and Core Strategic Objectives
    The first emerging practice is to sync quality measures with customer expectations throughout the value chain. The second is to link quality data to continuous improvement activities. The third is to connect quality measures to compensation. The emerging practice is to share with all employees a central dashboard.
  8. Use Measures to Promote a Culture of Quality: The first foundational practice is to appreciate quality practices and achievements with rewards and recognition. The second is to develop challenging goals. The first emerging practice is to coach all new recruits on basic principle of quality management. The second is to offer transparent access to quality data to everyone.

See full story on processexcellencenetwork.com

April 2, 2015   Benchmark Six Sigma
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