Quality Progress - December 2017 - 15

Four areas of potential measurables

1. Financial and business. When evaluating the quality of new products from development, management will be interested in financial
and business metrics, including:
+ Actual revenue from a new product versus plan.
+ Percentage of total revenue from all new products developed in a
timeframe, such as the last three years.
+ New product return on investment, net present value or
If process time or cycle
other financials versus plan.
time is too long, prob+ Penetration rates or market
lematic process steps
share versus plan.
creating bottlenecks
+ Cost of purchased materials
should be studied in
that were selected during
detail for improvement.
development.
+ Supplier nonconformances
and corrective action requests. Supplier selection and initial management activities should occur during development.
+ Inventory versus plan, backorders, ship holds, on-time shipping
performance and anything that affects the availability of good quality, acceptable product getting into the customers' hands on time.
These metrics also are related to manufacturing quality.
2. Design and manufacturing. Considering quality directly, product
development and production performance can be monitored simultaneously by counting the following events and keeping track of
whether the causes can be attributed to design or manufacturing:
+ Customer complaints and recalls assigned to the new product.
+ Internal nonconformances.
+ The number and significance of corrective and preventive action
projects or other improvement projects that must be initiated.
Design causes imply an opportunity for product development
improvement, and manufacturing causes identify improvement needs
in production.
3. Production processes. A series of potential metrics related to
production processes can be included, such as:
+ Process time-The actual time it takes to make the product. This is
an element of cost to manufacture and ultimately part of the overall
cost of goods sold.
+ Cycle time-Also called lead time. Cycle time measures the length of
time it takes to manufacture the product in terms of calendar days.
+ Yield-Yield by process step or process, ultimately rolling up to an
overall yield. Alternately, yields can be converted to defects per
million or defects per 10,000 depending on the production rates.
+ First-time percentage complete and accurate (% C&A)-An alternative to yield, % C&A represents how much product moves through
each process and all processes together without any rework or nonconformances. The difference between first-time % C&A and overall
yield is that yield may consider some positive gain from rework.
+ Process capability metrics-Process capability metrics, such as Cpk ,
measure key process parameters.
+ Uptime-Production system availability or manufacturing uptime
versus plan.

4. Design transfer. Audits are a good
tool for determining the quality of the
design transfer. Consider monitoring:
+ Internal process audit nonconformances, including planned process
steps being executed incorrectly or
incompletely.
+ Internal product audit
nonconformances.

What to include

Considering all these metrics, a list of
the critical few metrics for new products
implemented in manufacturing could
include:
1. Overall yield.
2. Customer complaints attributed to
design, manufacturing and supplier
causes.
3. Process time.
4. Cycle time.
These four metrics reflect internal and
external failures, and process effectiveness and efficiency. They also tie into
the cost-related business metrics, which
must be tracked and made visible for top
management.
Depending on where the data identify
issues, investigation into more detailed
metrics may be necessary. If overall yield
is problematic, for example, the yield by
process or process step should be determined to ensure problems are resolved at
the correct level. If process time or cycle
time is too long, problematic process
steps creating bottlenecks should be studied in detail for improvement.
Ultimately, there are many options, so
internal discussions and decision-making
tools should be used to determine the
right metrics for your organization.
This response was written by Scott A.
Laman, Teleflex Inc., Reading, PA.

qualityprogress.com ❘ December 2017

QP 15


http://www.qualityprogress.com

Table of Contents for the Digital Edition of Quality Progress - December 2017

Seen and Heard
Progress Report
Mr. Pareto Head
Expert Answers
Career Coach
The Next Rung
Titles and Take-Home
Certification Certainty
Six Sigma Satisfaction
Stay the Course
Maintenance Makeover
Confronting Confusion
Standard Issues
Statistics Spotlight
Marketplace
Footnotes
Try This Today
Quality Progress - December 2017 - intro
Quality Progress - December 2017 - cover1
Quality Progress - December 2017 - cover2
Quality Progress - December 2017 - 1
Quality Progress - December 2017 - 2
Quality Progress - December 2017 - 3
Quality Progress - December 2017 - 4
Quality Progress - December 2017 - 5
Quality Progress - December 2017 - Seen and Heard
Quality Progress - December 2017 - 7
Quality Progress - December 2017 - Progress Report
Quality Progress - December 2017 - 9
Quality Progress - December 2017 - 10
Quality Progress - December 2017 - 11
Quality Progress - December 2017 - 12
Quality Progress - December 2017 - Mr. Pareto Head
Quality Progress - December 2017 - Expert Answers
Quality Progress - December 2017 - 15
Quality Progress - December 2017 - Career Coach
Quality Progress - December 2017 - 17
Quality Progress - December 2017 - 18
Quality Progress - December 2017 - 19
Quality Progress - December 2017 - The Next Rung
Quality Progress - December 2017 - 21
Quality Progress - December 2017 - 22
Quality Progress - December 2017 - 23
Quality Progress - December 2017 - 24
Quality Progress - December 2017 - 25
Quality Progress - December 2017 - 26
Quality Progress - December 2017 - 27
Quality Progress - December 2017 - 28
Quality Progress - December 2017 - 29
Quality Progress - December 2017 - Titles and Take-Home
Quality Progress - December 2017 - 31
Quality Progress - December 2017 - 32
Quality Progress - December 2017 - 33
Quality Progress - December 2017 - 34
Quality Progress - December 2017 - 35
Quality Progress - December 2017 - Certification Certainty
Quality Progress - December 2017 - 37
Quality Progress - December 2017 - 38
Quality Progress - December 2017 - 39
Quality Progress - December 2017 - 40
Quality Progress - December 2017 - 41
Quality Progress - December 2017 - 42
Quality Progress - December 2017 - 43
Quality Progress - December 2017 - Six Sigma Satisfaction
Quality Progress - December 2017 - 45
Quality Progress - December 2017 - 46
Quality Progress - December 2017 - 47
Quality Progress - December 2017 - Stay the Course
Quality Progress - December 2017 - 49
Quality Progress - December 2017 - 50
Quality Progress - December 2017 - 51
Quality Progress - December 2017 - 52
Quality Progress - December 2017 - 53
Quality Progress - December 2017 - Maintenance Makeover
Quality Progress - December 2017 - 55
Quality Progress - December 2017 - 56
Quality Progress - December 2017 - 57
Quality Progress - December 2017 - 58
Quality Progress - December 2017 - 59
Quality Progress - December 2017 - Confronting Confusion
Quality Progress - December 2017 - 61
Quality Progress - December 2017 - 62
Quality Progress - December 2017 - 63
Quality Progress - December 2017 - 64
Quality Progress - December 2017 - 65
Quality Progress - December 2017 - Standard Issues
Quality Progress - December 2017 - 67
Quality Progress - December 2017 - 68
Quality Progress - December 2017 - 69
Quality Progress - December 2017 - Statistics Spotlight
Quality Progress - December 2017 - 71
Quality Progress - December 2017 - 72
Quality Progress - December 2017 - 73
Quality Progress - December 2017 - Marketplace
Quality Progress - December 2017 - 75
Quality Progress - December 2017 - Footnotes
Quality Progress - December 2017 - 77
Quality Progress - December 2017 - 78
Quality Progress - December 2017 - 79
Quality Progress - December 2017 - Try This Today
Quality Progress - December 2017 - cover3
Quality Progress - December 2017 - cover4
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