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As Robert Kaplan and David Norton, creators of the BSC (Balanced Scorecard) methodology said: “What is not measured is not managed.”
To explain, in practice, you have probably already bought a product with a lower value than another, knowing that its quality could also be lower. Or that the service at a particular location was not very good, but you ended up giving in to it to save money.
Each company should deliver what it proposes, setting a monetary value on the services or products it offers. But what happens if the company does not deliver what it promises at all? It’s frustrating, to say the least, isn’t it?
Quality control would avoid mistakes (and frustrations). This is because a quality meter shows whether what is being proposed actually matches what is being delivered.
In order to address the topic of Quality Indicators, it is important that we first get to know some key ideas present in indicators in general.
What are quality indicators?
Indicators are instruments that synthesize a set of information into a single value, therefore, they allow certain phenomena to be measured among themselves, or over a given period. Still, we can say that quality indicators are tools, that is, they are not an end in themselves, but a mean. Also known as KPIs (Key Performance Indicators, or Key Performance Indicators), they identify trends and behaviors and usually provide factual data about the performance of an organization.
In this way, they allow the correction of possible deviations from the paths or directions of a company. We cannot forget to mention that the indicators are essential for a quality system, whose implementation brings benefits such as:
● Operating costs reduction;
● Greater customer satisfaction;
● Standardization and guarantee of greater process efficiency;
● Company organization.
About the types of indicators, we highlight the following:
Effectiveness Indicator (Customer Satisfaction and Loyalty)
Measuring the degree of customer loyalty and satisfaction for any type of business is essential. Therefore, among quality indicators, effectiveness is very important. Some functions of this indicator include:
▪ Research customer satisfaction, studying the strength of the product or service in the market;
▪ Check if the customer would buy or use the services offered by the company again, or if they would recommend their services to others; ▪ Provide feedback, which is often the starting point for a performance evaluation process.
Efficiency Indicator
Among the quality indicators, this one analyzes productivity through production management software, for example, with purchase, cost, and delivery time modules, etc.
It’s important to know how many times something needed or needs to be redone, or the resource that was used in that process. With this diagnosis, it is possible to identify the problems, and waste that must be avoided and, finally, allow for greater productivity.
Service Indicator (Customer Complaints)
Of the quality indicators, this understands that: the happier your customer is with the company, the more loyal they will be. It is important to stay tuned to this index, especially to monitor whether contact with the customer (including after-sales) is flowing correctly.
Among the functions of this indicator, the following stand out:
● Check if the company’s “mechanism” is working well, if employees are successfully carrying out their duties and striving to provide the best service;
● Create a good relationship (always worrying about the customer even after closing the deal);
● Win customer loyalty and earn the company’s good reputation in the market.
Effectiveness Indicator
This one aims at the importance of always being aware of the news in your area of activity and competitors. If you want to know if your product or service really works, of the quality indicators discussed so far, this is the one that helps you understand what you offer your customers.
Safety Indicator (Quality)
It is these quality indicators that concretely demonstrate the performance of the product or service, to verify whether the health or physical integrity of the customer can be compromised.
Through safety indicators, managers verify safety measures, certification requirements, and national and international standards.
As you can see, the quality indicators discussed here allow the observation of certain aspects of reality, since they measure, observe and analyze reality according to a certain point of view.
But be careful: don’t overdo the number or complexity of the indicators. They must talk to the demands of their customers and the criteria defined for the quality system.
How can I use KPIs in my organization and how can this help boost my results?
KPIs aid in your business processes’ effectiveness. Based on the indicator analysis results, managers can have a better view of whether it is necessary to change their strategy or whether the current strategy should be maintained, verifying how positive the results are.
Quality indicators include everything related to the effectiveness, efficiency, and effectiveness of a company’s processes and the services offered to the customer. They evaluate the business performance in several aspects, including factors such as profitability, market competitiveness, sales, and turnover rates.
Any company that aims at good performance needs to measure quality indicators, especially since they are tools that map organizational processes.
To exemplify, a company must always have a critical view of service and product quality in order to create improvements that stand out from the competition.
And for the company to make profits at the end of the month, two elements are essential: good service and quality products. Without them, you can even attract customers to the store, but you won’t be able to turn them into loyal customers.
This is where the great importance of quality indicators comes in: they will allow the manager to have this critical view of quality, service, and product and especially how to create improvements, pointing out failures and also successes. If you are interested in the subject, also read the post: KPIs: what are they and how to define them to use them in the management of your company?
Concluding
Always follow up on quality indicators. Have an action plan in case the recorded data point to any deviation from the desired quality standard. Also, do not forget to establish collaborators responsible for this activity, also defining the follow-up sequence.
