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Improvement targets and budget targets

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Guest user Created:   Sep 10, 2019 Last commented:   Sep 10, 2019

Improvement targets and budget targets

I would like to know if the quality objective for scrap has to be similar to the budget number for the scrap for the same facility. At the plant I work, we have a quality objective for scrap as one percentage number of production cost and our budget target is different number of total production cost, one of the internal auditor mentioned, they need to be same/linked, I am in disagreement as our budget is what my plant manager agrees to the finance and says this is what we budget for this year based on our volume past performance etc. and then our quality objective is set as a target to drive the improvement over reported scrap numbers.

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Carlos Pereira da Cruz Sep 10, 2019

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I agree with your organization’s approach. One target is for the budget and has to be communicated to the Finance. The other target is for internal use to guide an improvement project. There is no guarantee that the improvement target will attain. When the budget is prepared, the organization sometimes has no idea about what should be done to meet the improvement target.

The following material will provide you more information about quality objectives:
How to Write Good Quality Objectives - https://advisera.com/9001academy/knowledgebase/how-to-write-good-quality-objectives/
- Free webinar on demand - 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/
- Enroll for free course - ISO 9001:2015 Foundations Course - https://training.advisera.com/course/iso-9001-foundations-course/
- book – Discover ISO 9001:2015 Through Practical Examples – https://advisera.com/books/discover-iso-9001-2015-through-practical-examples/
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Sep 09, 2019

Sep 09, 2019

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