How is the effectiveness of processes measured?

What are QM process indicators in the company?

In order to evaluate the effectiveness of the quality management system, companies must determine what is measured and monitored in accordance with the requirements of ISO 9001 from Section 9.1 "Monitoring, measurement, analysis and evaluation". Data and information obtained during monitoring and measurement are to be assessed and analyzed. In order to be able to implement these requirements, companies need indicators or process key figures that enable the performance of certain processes to be assessed. However, the selection and classification of useful key figures are not always easy. In the following, you will learn more about process key figures and the possible classification of these key figures. For each class we will of course also show you an example of a key process figure. You will see that metrics are essential for process analysis.

Definition of process indicators

"Process key figures are benchmarks for internal (company-specific key figures) and inter-company (industry key figures) comparison (such as company comparison, benchmarking). It is a summary of quantitative, i.e. H. information expressible in numbers. Key figures support you in your decision support, regulation and review of measures. In addition, key figures in a time comparison (key figure system; for example balanced scorecard) are important in the context of operational early warning. "(Definition of process indicators analog economy lexicon.gabler.de)


Process metrics example

In distribution policy, an example is the delivery quantity reliability (%), which can be defined as "delivery quantity with correct deliveries / all deliveries". In addition, the percentage deviations from deadlines (%) represents another example of process performance indicators in work preparation, which can be seen as "the number of orders with deviations from deadlines / total orders". Also in the chapter "Monitoring, measurement, analysis and evaluation" of ISO 9001, suitable methods for monitoring and - if applicable - measurement of the processes of the quality management system are required. These methods must demonstrate that the processes are able to achieve the planned results. This requires key figures that now relate to all relevant processes. The process indicators are divided into different categories, which are presented to you in the next section.


Outline of process indicators

Process indicators can be divided into different categories. This section gives you a possible breakdown of key figures, with an example of the respective key figure for the individual categories.

1. Earnings metrics

Result indicators are indicators that are used to check whether the process is achieving the goals that are set for it. Typical key performance indicators provide information on whether a process can do what it should. So they provide information about the quality or effectiveness and the profitability / efficiency of the process.

Example of earnings metrics

  • Flawless services, customer satisfaction, costs per service unit.

2. Control indicators

In order to achieve the desired results of a process, it is necessary to control the process. To do this, you need key figures, they are called control figures. These key figures are all key figures that the person responsible for the process can directly influence (change). The derivation also depends on the individual process.


3. Incident metrics

Every process is subject to disturbances. In order to be able to evaluate how big these disturbances are, disturbance indicators are used. These are key figures that can be traced back to undesirable influences that cannot be influenced, but only limited. The derivation ultimately depends on the individual process.

Is the influence exercised by the person responsible for the process?
‏ =Control feature

Does the influence go back to a supplier (e.g. another process)?
‏ =Supplier characteristic

Neither the process owner nor the supplier exert this influence?
‏ =Disorder

4. Input and supplier key figures

Practically every process uses an input that is provided by a supplier and that he processes further. This input must meet certain requirements so that the process can work on it to the desired result. Therefore, the input can also be measured, for this input key figures are used. The input can come from your own company, i.e. other processes, or from external suppliers.

5. Effectiveness metrics

Effectiveness is an expression of whether a process has met the expectations placed on it.

Process metrics - example effectiveness metrics:

  • Did the goods arrive on time?
  • Did the goods arrive undamaged?
  • Is the customer satisfied?
  • Were the customers well advised?


6. Efficiency indicators

Ultimately, efficiency is a consideration of the cost side

Process indicators - example efficiency indicators:

  • What did it cost to deliver the goods on time?
  • What is the cost of the process to keep customers happy?
  • How high are the investment costs for process optimization?

7. Supplier key figures

Supplier key figures are all key figures that can be used to describe the performance of the internal or external supplier. The derivation is analogous to the effectiveness indicators.