The standard says; “c. determine and apply the criteria and methods (including monitoring, measurements and related performance indicators) needed to ensure the effective operation and control of these processes;”
To comply with AS9100D and/or ISO9001:2015 you must define your QMS processes. In so doing, you must also define the measurement(s) that will be used to track performance for each of these processes. The measure must be numeric, specific to the process and add value. In addition, you need to establish acceptance performance criteria. For example, if you have a process you call “Production” you may have a process measure like “percent defective per month to be less than 1.5%.” You must measure, monitor and report the percent defective each month as an indicator of performance of the process called Production. This data and data over time (some graphic to show trends) must also be reported in management review (see AS9100 and ISO9001 paragraph 9.3).
This requirement applies to all processes (defined by you) which fall within section 8.0 of AS9100D or ISO9001:2015. Likely processes are:
Design and Development
You cannot have one key process indicator (KPI) like “Customer Satisfaction” or “On Time Delivery” and apply it to all processes. Of course, all of your processes contribute to customer satisfaction and on time delivery; however, it is not specific, that is, not telling of the process performance. If on time delivery is poor, which process needs improvement? All of them?
Measures need to add value to the business and be important to the organizations’ success. Don’t limit yourself to traditional “quality control” measures. Consider; profit, planned cost variance, customer satisfaction, sales capture rate, inventory turns and the like.
Establish targets that are real based on actual performance data. If your on time delivery averages 65%, then maybe your KPI (aka objective) should not be 100% on time delivery (OTD). In this case, maybe 75% would be realistic. If Production quality is high, say 98% or better, then your KPI should be >98% per month. Do not state 100% only to later beat yourself up because your quality was only 99.2%. There is probably no value in that!
You are likely to have a “Quality” process that includes final inspection activities (AS9100D 8.6) and control of non-conforming product activities (AS9100D 8.7). Given that these requirements are within section 8.0, must you have a KPI for this process of “Quality?” The answer is NO, if you have defined the processes correctly. If your interaction of processes diagram (IOP) shows the process of Quality as a support process, then a KPI (objective) is not required. See our news post titled “Interaction of Processes.” You may have a measure for the process of Quality if you like, but it is not required. Warning: The standard requires monitoring, measurement where applicable, and analysis of QMS processes.
Some data must be collected and reported. These are: on time delivery, supplier quality and supplier on time delivery. In addition; Information to be monitored and used for the evaluation of customer satisfaction shall include, but is not limited to, product and service conformity, on-time delivery performance, customer complaints, and corrective action requests. The organization shall develop and implement plans for customer satisfaction improvement that address deficiencies identified by these evaluations, and assess the effectiveness of the results.
Further, performance to KPIs must be trended over time and reported in management review. KPIs that are not meeting the established criteria must be acted upon, aka, corrective action.
For AS9100D audits, your PEAR score will be affected by performance to objectives. Failure to implement improvements will lower your PEAR score even further.
Processes can have more than one objective (KPI). Keep your objectives, simple, realistic, measurable, numeric, defined time frame and defined responsibility.