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Quality Policy Department Quality Metrics Targets/Goals LPI is committed to achieving customer satisfaction by providing quality products delivered on time We accomplish this, while maintaining profitability, through the use of efficient processes and the continual improvement of our system Finance Complaints vs. parts shipped Customer survey Customer scorecard 0.8% by 3/31/15 Overall 8.9 by 12/31/15 “Superior” by 6/30/15 Production Scrap rate (good vs. total parts) Packaging/Shipping Errors % Receiving Errors % Supplier Quality Rejects PPM 2.5% by 9/30/15 0.5% by 3/31/15 0.5% by 3/31/15 <100 PPM by 6/30/15 Purchasing On-Time Delivery % Average Time to Develop Part Supplier On-Time Delivery 98.5% by 3/31/15 2 mo. by 6/30/15 85% by 12/31/09 Sales Bookings (by customer, date, etc.) 27% by EOY 2015 67% by 6/30/15 24 turns by 12/31/15 <5% of sales by 9/30/15 Quality and Continual Improvement % recurring corrective actions CAPA average closure time Trends in process metrics Comparison of internal audits vs. external audits <5% by 3/31/15 <2 mo by 6/30/15 80% improving ongoing No external audit surprises

Example of Quality Metrics - KPIs

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Quality Policy & Objectives

Quality PolicyDepartmentQuality MetricsTargets/Goals

LPI is committed to achieving customer satisfaction

by providing quality products

delivered on time

We accomplish this, while maintaining profitability,

through the use of efficient processes

and the continual improvement of our systemFinance Complaints vs. parts shipped

Customer survey

Customer scorecard 0.8% by 3/31/15 Overall 8.9 by 12/31/15 Superior by 6/30/15

Production Scrap rate (good vs. total parts)

Packaging/Shipping Errors %

Receiving Errors %

Supplier Quality Rejects PPM 2.5% by 9/30/15 0.5% by 3/31/15 0.5% by 3/31/15