Quality Metrics

Quality as a reference variable not only influences customer satisfaction, but also affects the profit of the company. A high error rate affects internal as well as external customers. [1] External customers nowadays expect clear quality standards and each faulty performance will have negative effects on customer satisfaction and thus onto the turnover of the company. 2

The investigation of quality metrics is of importance along the whole internal and external supply chain. Starting at the beginning of the supply chain the external quality of the suppliers is measured at the goods received. The next step along the supply chain is the measurement of internal failures and wastage on different measuring points along the internal added value chain continuing to the outgoing goods and the customer reclamations at the end of the supply chain. Thereby it is to be considered that quality deficits also have indirect negative effects on business processes like deadline shifts and longer processing times caused by unnecessary repetition of procedures. The quantity of these effects is measured with the means of failure costs.

That’s why just in the field of quality metrics the regular reporting of reliable, correct numbers as well as the prompt if not live supervision of the quality via indicators is of enormous importance.

For the latter the topical display of key performance indicators like failure and wastage quotes per day, per shift or even live via dashboard is a perfect solution. The process owners with their individual quality cockpits on hand are not only warned of quality deviations via visual warning signals like traffic lights or via automatic email warnings, they also can select the failure booking by mouse click, analyze the cause and immediately find a solution. All of this without having to consult the IT department and complex export procedures from the ERP system. This is done by assigning the relevant quality indicators via individual cockpits to the process owners. These can be the quality department itself, the procurement department dealing with supplier related deficits, the production management being responsible to deal with internal failures and wastage or the sales and distribution department dealing with quality problems at the end of the supply chain.

Specific care and also experience is required when determining quality costs. These often must be calculated by extracting data from diverse data sources and linking the data base correctly. Of course we always take special care that secure mechanisms eliminate manual data collection and calculations.

The successful fulfilment of these variable demands and the right measurement of quality metrics start long before the implementation of software tools. The course is set during the first concept and definition phase. We are convinced that only a comprehensive project management from the concept, the detailed definition of the specifications to the ready configured indicator system guarantees the lasting success of your project! Simmeth System offers operational and technical expertise based on 13 years of experience.

The benefits of software based quality metrics for your immediate return-on-investment:

  • Methodical project handling guarantees the right performance indicators according to the processes
  • Usage of templates on basis of 13 years of project experience guarantee streamlined projects and fast implementation
  • Fully automated consolidation of data and calculation of indicators instead of manual calculation saves enormous efforts for IT and procurement departments
  • Fully automated data processing and calculation of indicators instead of manual preparation saves enormous efforts in the IT, controlling and purchase departments
  • Personalized cockpits for process owners deliver the right information to the right people
  • Fully automated creation and distribution of the analysis and reports saves enormous preparation and secures the correct distribution of the information
  • Automating also means avoiding mistakes
  • All information, cost indicators and reports topical and on the click of a button

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1 See Schmelzer/Sesselmann, (2006), S. 261.  See Bogaschewski/Rollberg (1998), S. 9