Intended learning outcomes: Explain the problems of the measurability of indicators and the step from measurement to corrective actions. Describe the issue using the example of the measurement of customer satisfaction.
The International Organization for Standardization (ISO) gives a formal definition of quality.
“Quality is the totality of characteristics of an entity that bear on its ability to satisfy stated and implied needs” [ISO8402].
In contrast to quantities (amounts), measurability is not contained in the term quality (nature, quality, character) from the start. But the nature, quality, and character of an object are nevertheless assessed. The measurability of quality could be advantageous for quality management: “You can only improve what you measure,” say some executives. However, measurability requires a measurement system.
The measurement system contains a goal or target that is to be achieved through the measurement (measurement objective), from which an indicator must be derived.
The indicator must be scaled appropriately, that is, divided into units of measure, and sensors collecting data to obtain a measurement in these units of measure must be made available. Moreover, the indicator must be of a kind that can be translated into concrete corrective actions. Figure 18.1.4.1 shows well-known problems that arise with this endeavor.
Fig. 18.1.4.1 Problems of the measurability of indicators and the step from measurement to corrective actions.
Characteristics that are relatively easy to measure are the physical characteristics of products and processes. This is the realm of traditional quality inspection and quality assurance. Both favorable outcomes and failures can be measured.
If the quantitative measures and the desired values are laid down in the product requirement specifications, the object can be measured accordingly. It is more difficult to determine whether the measurements obtained also satisfy stakeholders. It can happen that certain characteristics that are of crucial importance to stakeholders have not even been identified.
In connection with people, the measures are frequently combined and are general in content. Take, for instance, the characteristic customer satisfaction. Here it is not sufficient to measure some general value. The problem to be mastered is assessment of the customer’s judgment of performance as to individual quality characteristics, while keeping cost and effort within reasonable bounds. On the time axis, the assessment should take place, where possible, in an events-related manner (for example, in reference to products or services sold). However, in the area of consumer goods particularly, many characteristics of customer satisfaction lie within the individual realm of the customer and may even be subconscious on the part of the customer. Measurement that provides objective and interpretable cause and effect analyses is thus often an illusion.
Similarly difficult is the measurement of employee satisfaction. People are not easily willing or even capable of openly explaining their conscious or unconscious needs. However, the effort that is required should not prevent us from measuring that which is feasible to measure.
It is interesting that frequently there will be some employees that have exact knowledge of their own needs and the needs of other stakeholders. It is therefore very important that these people be involved in the development and use of measurement systems in those areas.
Course section 18.1: Subsections and their intended learning outcomes
18.1 Quality: Concept and Measurement
Intended learning outcomes: Produce an overview on the quality of processes, products and organizations as well as its measurability. Present the concept of quality measurement and Six Sigma.
18.1.1 Process Quality
Intended learning outcomes: Produce an overview on process, service, and a service provided to dependents. Present the characteristics of the quality of processes. Identify process quality, process time, and process load.
18.1.2 Product Quality
Intended learning outcomes: Identify product quality. Differentiate between a simple product and a product in a broad sense. Present the characteristics of the quality of products.
18.1.3 Organizational Quality — Quality Towards the Stakeholders of an Organization
Intended learning outcomes: Identify organizational quality. Describe the concept of quality toward the stakeholders of an organization.
18.1.4 Quality and Its Measurability
Intended learning outcomes: Explain the problems of the measurability of indicators and the step from measurement to corrective actions. Describe the issue using the example of the measurement of customer satisfaction.
18.1.5 Quality Measurement and Six Sigma (6σ)
Intended learning outcomes: Describe the metric of six sigma (6σ) and the sigma conversion table. Identify Six Sigma Quality. Differentiate between three Sigma and Six Sigma process reliability.
