Example: Quality Control 

Quality control not only ensures product excellence but also directly supports financial and high-level goals. Here’s how we align Job-Level Indicators to achieve the high-level objectives of Profitability, Efficiency, and Productivity. 

Categorization of Job-Level Indicators for Quality Control 

These groups can be combined into fewer roles in smaller organizations or represent distinct jobs in larger ones, based on decisions made by the Owner/Management. 

Group 1: Process and Equipment Optimization 

- Indicators: 

  1. Planned maintenance 

     - Ensures equipment functions optimally to maintain consistent quality. 

  2. Process stability 

     - Reduces variability, supporting adherence to quality standards. 

  3. Quantity of good products per equipment 

     - Tracks machine output to improve yield efficiency. 

  4. Scrap quantity/order/shift 

     - Measures rejected items to identify and mitigate process flaws. 

Financial Indicators Affected: 

  - Optimal production size 

  - Cost reduction 

  - Product profit margin 

Group 2: Material and Supplier Management 

- Indicators: 

  1. Material requirements 

     - Assesses raw materials for quality compliance. 

  2. Supplier base 

     - Manages and evaluates suppliers to secure quality inputs. 

  3. Label and cap compliance 

     - Ensures consistency in external product components. 

Financial Indicators Affected: 

  - Inventory 

  - Traceability, identifiability 

  - Planned/actual acquisition cost 

Group 3: Compliance and Auditing 

- Indicators: 

  1. Audit compliance 

     - Ensures operations meet regulatory and quality standards. 

  2. Traceability, identifiability 

     - Enables tracking of issues to their source for correction. 

  3. Accuracy of preliminary calculations 

     - Prevents resource misallocation affecting quality consistency. 

Financial Indicators Affected: 

  - Training and certification costs 

  - Cost of corrective actions 

  - Product replacement and/or compensation costs 

Group 4: Workforce and Training 

- Indicators: 

  1. Training and certification costs 

     - Invests in workforce skills to meet quality goals. 

  2. Work schedule 

     - Optimizes labor allocation to avoid rushed production. 

  3. Operations coordination - Planning 

     - Aligns production schedules with quality requirements. 

Financial Indicators Affected: 

  - Headcount plan 

  - Shift schedule plan 

  - Downtime

Our Showcases provides deeper insight.