Quality management has become fundamental to drive operational excellence and deliver customer satisfaction and business growth. For the quality system to remain effective, there has to be a periodic assessment of its performance as well as continuous improvement.
Today, most businesses measure Key Performance Indicators (KPIs) across the product lifecycle and value chain. But typically, this is focused on what has already happened.
For instance, enterprises often measure the number of complaints in a month or, say, the number of complaints about a particular volume of products sold. This is a lagging indicator, which helps assess the current state of business. It is certainly a useful metric to track and it is used to plan corrective action steps and prevent future occurrence.
But, is that enough? Not at all. Businesses also need leading indicators, to set goals and drive future outcomes. For businesses to reduce complaints, improve quality standards and drive customer satisfaction, leading indicators (such as establishing what percentage of complaints in ratio to the number of products sold is acceptable) are as critical.
This whitepaper will give you detailed information about:
- Leading vs Lagging indicators
- Prerequisites for Effective Metrics
- Key Metrics for Quality Management
- Key Metrics for Suppliers
- And More