ISO 9001 KPIs

First, let us answer considering each process in isolation.

It is possible to consider 3 types of indicators:

• Effectiveness indicators;
• Efficiency indicators;
• Quantity indicators. 

For me, the most important is 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 a 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
• Delivery

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, a 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.

Should effectiveness indicators be always the indicators to follow? An organization is made of a set of processes but not all processes contribute in the same way to execute a strategy. Some processes are critical for strategy execution and for those processes’ effectiveness is of paramount importance. Some processes must exist but are not critical for strategy execution. If an organization is excellent at those processes it will spend more resources and customers will not value the difference. However, if an organization fails to comply with the minimum, customers will be upset and will be dissatisfied. So, for these processes’ efficiency is the best.

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/
• Please check this free webinar on demand - The Process Approach - What it is, why it is important, and how to do it - https://advisera.com/9001academy/webinar/iso-9001-process-approach-free-webinar-on-demand/  - how to relate processes and 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/