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5 Quality Metrics Every Business Needs to Have in Mind
quality metrics

5 Quality Metrics Every Business Needs to Have in Mind

All companies should improve their processes to achieve success and profitability. Furthermore, they need to keep track of their progress which is done with the help of quality metrics. These calculation tools will define what improvement means for a specific industry or business. It is useless to implement something without measuring its effects. Here are the most useful quality metrics you should consider.

The Most Effective Quality Metrics You Should Use for Your Business

1. Operating Productivity

If you want your company to be successful, you need to measure your staff’s productivity. Your employees are a valuable asset for your business. They are what keeps the company functioning in a proper way. If they are happy and pleased with your management, their productivity levels will increase. This will further lead to happy, satisfied customers. Your company can be in jeopardy if your employees are not content with their jobs. Make sure to measure their productivity and apply these rations to all your business’ other aspects.

2. On-Time Delivery

This is one of the most important quality metrics that any business should consider. How many times you have managed to deliver the products to your clients in the agreed time? If you find out this percentage, you can discover your rate of on-time delivery. Don’t rely on the fact that dissatisfied customers are just a few and those who are happy with your service are outnumbering the first ones. An unhappy client will talk negatively about your brand to at least 10 people, which will damage your company’s image.

3. Supplier Quality

Once you start a business, you will probably have to find good suppliers to collaborate with. They are the ones who provide your necessary raw materials which can impact your final product’s quality. This is why you must carefully assess both the costs and quality of your materials and procured products. You need to develop a strong relation with your suppliers because this way you can replace certain materials that don’t meet the required specifications. It is an effective way to cut losses.

4. Customer Satisfaction

Your clients are among the most important aspects of your business along with your employees. Therefore, their level of dissatisfaction should never be ignored by you. You can measure how well your business is doing, by using quality metrics such as the following ones: meeting clients’ needs, exceeding their expectations, handling complaints in an effective and quick way, and more. Your customers’ feedback is valuable information that can contribute to your company’s development.

5. Hours Worked Per Process

Total labor hours will provide you an overall image of your production quality. When it comes to processes such as assembly, manufacturing and support operations, this quality metric will help you decide whether is time to optimize your business or not. On the other hand, you shouldn’t rely on it as an absolute quantifier because although labor is the least affordable raw input, the only business constant is change. You can easily replace unproductive operations with automated processes. However, the cost of the automation needs to be justified.

Let’s Recap

If you want your business to succeed, you need to start measuring quality metrics. They will offer you an overall image of the way your company works. Moreover, you will be able to find out innovative ways to optimize your business’ aspects and operations by calculating these metrics.

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