Article on ISO & Quotas

[Jim Clauson <jim@jclauson.com>]

DENizens,

The following article is from Mike Crossen, macrossen@ra.rockwell.com He
is a DEN archive reader and occasional contributor.  

There seems to be a strong emphasis in the new ISO 9001:2000 requiring
management to establish measurable objectives.   During two different
training sessions I had the instructors state that "soft" objectives
were not acceptable.   For instance "will improve our reject rate at
receiving inspection" would not be acceptable.  Your objective should be
something more like "will achieve an improvement of 20% in receiving
inspection defects over last year".  I also had one instructor suggest
using "stretch goals".

I have studied variation for a few years now and have come to the
understanding that a company should strive to continually reduce
variation throughout the process.  I think ISO's emphasis on continual
improvement fully supports this.  I have also come to understand over
the years that numerical quotas produce undesired behavior and will
actually increase variation while eroding employee morale.  I am certain
that while in the minority, I  not alone with this understanding.

It seems like the standard is open for interpretation.  This would allow
various interpretations to be taught throughout the industry.  It could
be interpreted that ISO requires objectives with specific improvement
goals identified (with the purpose of being met).  That sounds like a
numerical quota.  Meet 20% improvement.  If you don't, you fail.  
Should we be auditing to see if companies are failing to meet
objectives?  Even if they are showing continual improvement, but not
quite meeting their quota?

SO 9001:2000 4.1f states "…The Organization shall  implement actions
necessary to achieve planned results and continual improvement of these
processes.  Clause 5.1c requires management to "ensure that quality
objectives are established".    Clause 5.4.1 states  "…the quality
objectives shall be measurable and consistent with the quality policy.  
ANSI Q9000:2000 states .." The quality objectives need to be consistent
with the quality policy and the commitment to continual improvement, and
their achievement needs to be measurable.

Now I don't see anything that would state you must have a numerical
quota.  It must be measurable. For example, if  my audit program has
been successful and I feel I can  achieve continual improvement in
receiving inspection by performing three audits in that area instead of
one this year, my stated objective would be "to improve defect rates in
receiving inspection by performing three process audits this year". 
That statement might make some of those who read this cringe, but the
results are measurable.  I measure defects at receiving inspection and I
can see if they improve.   Instead of trying to predict some defect rate
I think I can hit, I choose to plan and schedule audits which will
support the ISO standard's mission of "continual improvement"    

Certainly it would not be acceptable to have an objective stating  "to
have better product".  To me, statements like these are soft and not
measurable.  But I don't think ISO, or anybody else should tell me as a
business owner to employ numerical quotas, when I know that such quotas
will add to my problems, not solve them.  I feel as though there are
some who are taking this "measurable" term and associating it with a
quota.  Is that ISO's intent?  I hope not.

I agree with  Dr.  Deming's instruction  to replace numerical quotas
with leadership.   ANSI/ISO/ASQ  Q9000-2000 ,  0.2 b lists leadership
among its principles.  I would like to believe that the intent of ISO
was not to require companies to employ numerical quotas.

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Jim Clauson:	 		                  jim@jclauson.com
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