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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Answer
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.
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How to Write Good Quality Objectives - https://advisera.com/9001academy/knowledgebase/how-to-write-good-quality-objectives/
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Sep 09, 2019