Quality indicators: what are they and how to implement them?

By BUKINGPROPERTIES
10th September, 2024

Quality indicators are KPIs (Key Performance Indicators) that are essential for company and industry managers to monitor the performance of internal processes and customer satisfaction.

When you mention quality, your thoughts may immediately turn to the well-known ISO (International Organization for Standardization) certifications, which recognize companies that meet the organization's standards in various areas of management.

This is a recognition that attests to the company's commitment to excellence. However, before undergoing a high-level audit, it is necessary to consolidate the company's culture of quality .

Defining consistent processes, monitored by indicators, is essential work to ensure close monitoring of results, continuous improvement and the financial return of the operation.

In this article, you will find a guide with the main points to understand what quality indicators are, the main types, how to implement them and the importance of this data for the growth of companies. Continue reading to check out every detail.

What are quality indicators in a company?

A company's quality indicators are metrics that inform the efficiency of business processes and the performance achieved with available resources, maintaining efficient operations. The results help implement improvements in production stages so that workflows are optimized and more accurate .

Quality-related metrics are an important category among performance indicators (KPIs) as they monitor strategic points of the operation, such as efficiency, customer satisfaction, production capacity, profitability, among others.

The data obtained allows us to evaluate situations and make safe decisions regarding changes, clearly analyzing the possible effects on the quality of deliveries.

In this way, companies can improve the standard of their services and products in the market, generate more value for the brand and achieve strategic goals, which will allow continuous growth and make the expansion plan viable .

What are the main types of quality indicators?

The types of quality indicators are included in the management of various sectors of the company, not just the operational one. Each one meets a specific objective within its area, providing an accurate view of the functioning of the evaluated processes.

We have gathered some examples of indicators to illustrate what can be monitored in quality management. Check it out!

1. Efficiency

Efficiency is one of the quality indicators that evaluates how available resources are used within the operation in favor of results.

The main resources are: capital for investments, automation technologies, organization of workspaces, working hours model, among others.

By evaluating the costs of each process and the results generated, companies identify errors and successes and can plan improvements, such as correcting production bottlenecks .

2. Effectiveness

Following the list of types of quality indicators, we have effectiveness . The indicator measures whether the business's strategic objectives are achieved, in addition to outlining an overview of the percentage of goals achieved compared to those not achieved.

The more objectives are achieved, the higher the efficiency index of the operation, allowing the company to consolidate processes that help reduce costs and increase profitability.

To maintain efficiency, analyze current and new projects regarding their impact on revenue, error rate in execution and the relevance of the proposal for customers.

3. Production capacity

Production capacity is the indicator obtained by comparing the volume produced and the production time to deliver the products or services, according to the stipulated target.

In product manufacturing industries, a daily production target is usually established. In this way, the indicator can be broken down to analyze not only daily capacity, but also monthly and annual capacity.

In service provider companies, this capacity quality indicator assesses the percentage of services provided in a given period (day, week, month, etc.).

4. Customer satisfaction

One of the most important quality indicators is customer satisfaction . This is because a high score indicates that consumers are receiving what they expect from the company's solutions.

Using this information, it is possible to “investigate” customers, applying post-sales surveys , for example, to determine what contributed to their satisfaction and opinion on the quality of the products and services purchased.

The data also helps in planning actions aimed at loyalty, including new benefits to enrich the customer experience.

5. Product/service safety

The design of a product or service must be planned so that, during handling or execution, there are no risks to the customer's physical integrity.

There are sectors of the market, such as the chemical industry, that have rules to guarantee safety , which must be complied with or risk fines and other sanctions.

Through this quality indicator, companies can change the product to avoid unwanted side effects obtained in pre-analysis, for example, and offer a safe product on the market.

6. Market acceptance

In addition to safety testing, another important indicator of quality is market acceptance . This procedure is common in the cosmetics industry, for example.

Companies create the formula and set up a study group to use the product and report the results. The data is then used to highlight the good acceptance of the product, the benefits obtained and, thus, attract the interest of potential customers.

The opposite is also true. In other words, if a company receives negative feedback and significant criticism about a product or service, it can use the feedback to make improvements, retest the acceptance, and then launch it with a greater chance of success.

7. Customer Impact

The impact indicator shows whether customer satisfaction has reached a positive level to the point where they recommend the brand because they value the characteristics that the company's product or service offers.

The positive or negative result generates information that the company can use, whether to evolve existing solutions, create new ones or optimize points for improvement.

8. Customer service

The quality of customer service is one of the essential factors for customer loyalty. Maintaining a good relationship requires continuous effort, so it is essential that the team responsible is well trained and qualified in their work.

Post-service surveys are key tools for getting honest and objective feedback from customers. Apply, tabulate and evaluate the results to find out what went well and what can still be improved.

9. Meeting deadlines

Meeting deadlines is an indicator of quality because it means that the production flow is well aligned with the time stipulated for manufacturing an item or providing a service.

A positive result in the evaluation of orders allows us to improve the method of projecting deadlines for each customer, according to the volume requested. This care avoids delays in deliveries, which directly affects customer satisfaction.

10. Defects and failures

In the list of quality indicators, we still have the defect and failure rate . It is natural for there to be a margin of deviation, so it is essential to evaluate what is acceptable in order not to exceed the maximum rate.

Failures and defects generate financial losses, as items need to be discarded and new ones produced, or the service needs to be redone, using more materials and team time.

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