These performance indicators are set by the organization and they vary from one organization to another. Each organization must decide which performance indicators are more suitable to the nature of their industry sector and their objectives.
What should be considered is that these indicators must be measurable and achievable. They must refer to the system’s critical processes, they must accurately represent the target to be measured, and they should be quantifiable, cost-effective, reliable and allow management to know the information in real time.
Below, the critical areas to be measured and some examples of indicators are mentioned.
Cost Indicators
These are performance indicators that evaluate the activities that consume economic resources in different processes.
- Percentage costs spent on energy consumption.
- Percentage return on investment.
- Percentage cost of carrying out reworking or correcting errors.
Time Indicators
These performance indicators measure the time consumed in an activity or process and considers the time from the beginning to the end of the selected process or activity. For example:
- Percentage number of products or services delivered on time.
- Percentage number of products or services delivered late.
Productivity Indicators
These performance indicators measure the efficiency of resources in the operation. Some of these could be:
- Percentage machine/equipment utilization.
- Percentage of downtime.
Quality Indicators
These performance indicators calculate the effectiveness in the development of activities or processes, delivering results based on the number of errors, number of perfect and flawless deliveries. An example is:
- Percentage number of products or services needing rework.
- Percentage of customers ‘very satisfied’.
While these indicators may vary, the important thing to keep in mind is that they should serve as a tool for improving the quality of decisions regarding the processes and the ISO 9001 QMS itself.
Source: ISO Update
This article is reproduced with permission http://isoupdate.com/resources/performance-indicators-iso-9001-qms/
