API Q1, 9th Ed., Quality Policy vs. Objectives

QUESTION:
From: T.S. , Tercel Oilfield
Sent: Jan. 20, 2014
To: ATCS – QBlog, Ask The Experts
Subject: API Q1, 9th Ed., Quality policy and Objectives

Am I correct in saying that Objectives should establish the highest overall expectation and direction of the Top Management and that S.M.A.R.T. Goals should then established by the different departments and personnel that are in support of achievement of the Objective?

For instance, each department can have their own yet different Smart Goals but all the Goals should be designed to help the department or employees achieve the Objective established by Top Management?

 For instance in a football game “winning the game” isn’t that the ultimate outcome? Is that a Goal or an Objective? Wouldn’t different goals then be established by the offense and defense and the players all  in support of the objective? Or am I not saying that correctly?

RESPONSE:

From: Bill Aston, ATCS – QBlog, Ask The Experts
Sent: Jan. 20, 2014
To: T.S., Tercel Oilfiled
Subject: API Q1, 9th Ed., Quality policy and Objectives

Hello T.S.,

Good question.  But, as you’ve mentioned, API Q1, 9^th edition, requires top management to define the company’s quality objectives.  These objectives must be measurable and consistence with the quality policy.

In addition, the quality objective must be supported by key performance indicators (KPIs).  Typically, the KPIs would be established at relevant levels within the company to support the measurement of progress toward meeting the company’s objective.

Example:  If the quality objective was to improve customer satisfaction, then KPIs could be setup as:

1. Reducing warranty claims (Sales, QA, Engrg, Mfg)
2. Improving on time deliveries (Sales, QA, Engrg, Mfg)
3. Reduce product NCR disposition as repair, scrap or rework – (Mfg & QA)
4. Improve supplier performance (Purchasing & QA)
5. Prevent the recurrence of customer complaints  (QA)

All of the aforementioned items must be measured on a periodic basis.  This data can be used as information presented doing future management reviews to show that measureable objectives have been established and implemented at relevant levels within the company.

I hope this helps….

Best regards,
Bill Aston, Managing Director, ATCS
Kingwood, Texas