For example, a company wins business by being the lower bidder in public contracts. So, its Quality Policy assumes that efficiency is a top priority. Efficiency is translated into an overall QMS objective called “Improve productivity”.
An organization can be seen as a set of processes:
Meeting a particular QMS objective will be a function of one or more processes. For example:
In this organization, processes “4.Prepare production” and “6.Maintain equipment” are considered the two most relevant to “Improve productivity”.
Now, the organization can consider several ways of monitoring processes 4 and 6 performance. For example, measures for process 6 can be:
* Maintenance costs
* Mean time between failure of critical equipment
* Lost production time
All measures are relevant and have their reason, but the organization decides that “Lost production time” is a KPI because it is a good proxy for improved productivity. This is an example of “(e.g. one objective for the whole QMS, then individual objectives for the product or process that supports the overall objective).”
Now, back to your question. The overall QMS objective is, sometimes, very abstract and the final result of a long chain of cause-effect. With KPI’s an organization can monitor in real time measures that will affect the overall QMS objective that will only be measurable much later.