Setting objectives and targets
How to set objectives and Targets efficiently
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Good objectives are SMART (specific, measurable, achievable, realistic and time-based). Measurable means having an indicator. Target means having success criteria.
It is possible to consider 3 types of indicators:
- Effectiveness indicators;
- Efficiency indicators;
- Quantity indicators.
For me, the most important are the effectiveness indicators, they measure if the purpose of the process is being met.
For example, for a company that has a strategic direction around innovation and has a process called “Develop new products” one can ask:
- What is the purpose of such process?
- Quickly develop new products that are market hits.
Effectiveness indicators will measure “Quickly” and “hits”. For example:
- Average time to market
- Revenue from new products
- Average price of new products
Efficiency indicators are the classic QCD indicators:
- Quality
- Cost
- Deliver
For example, for a company that installs wireless networks for telecom companies, with a process called “Install network”, efficiency indicators can be:
- Number of daily nonconformities raised by the customer
- Actual network installation costs versus budgeted costs
- On-time delivery rate
Quantity indicators give information about the need to manage resources accordingly. For example, number of incoming calls at a call center is a way of evaluating the need to contract more people to handle more calls without raising waiting time.
In this free webinar on demand I develop the challenge of working with relevant indicators - Measurement, analysis, and improvement according to ISO 9001:2015 - https://advisera.com/9001academy/webinar/measurement-analysis-and-improvement-according-to-iso-9001-2015-free-webinar/
The following material will provide you more information:
- How to define Key performance indicators for a QMS based ISO 9001: https://advisera.com/9001academy/24/define-key-performance-indicators-qms-based-iso-9001/-iso-9001/
- How to Write Good Quality Objectives - https://advisera.com/9001academy/knowledgebase/how-to-write-good-quality-objectives/
- Free online training ISO 9001:2015 Foundations Course – https://advisera.com/training/iso-9001-foundations-course/
- Discover ISO 9001:2015 Through Practical Examples - https://advisera.com/books/discover-iso-9001-2015-through-practical-examples/
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Jul 07, 2020