Quality Systems 3P

Outcome Objectives and Process Objectives Defined

Posted by Bob under Articles

I was reading an article entitled “Writing SMART Objectives” (reference link: http://www.uthscsa.edu/ACET/docs/2009PreProposalWorkshops/Writing%20SMART%20Objectives.doc) and I am convinced that this is what most organizations need to establish and effectively maintain if they or to demonstrate “Performance Excellence”. In the article, it mentioned about the two types of objectives, namely, Process Objectives and Outcome Objectives. It stresses that “Process objectives focus on the activities to be completed in a specific time period. They enable accountability by setting specific activities to be completed by specific dates. Process objectives explain what you are doing and when you will do it. Outcome Objectives express the intended results or accomplishments of program or intervention activities.”

Learning the difference between the two is actually a CRITICAL requirement in establishing Quality Management System in accordance with ISO 9001 standard. If we are to look at the standard, objectives are primarily mentioned both in sub-clause 5.4.1 (Quality Objectives) and in sub-clause 7.1 (Planning of Product Realization). Looking merely at the standard’s requirement, as stated in these two sub-clauses, one would suppose that they are basically one and the same. That is why many organizations that were certified in ISO 9001:2000 have set of functional quality objectives and, at the same time, having some of those objectives written in either quality plans or procedures. As a result, REDUNDANCIES became apparent. There were even findings being raised during certification audits related to this. In this article, I will be presenting an approach in establishing Outcome Objectives and Process Objectives which is aimed to address this problem.  The key here is to put boundaries between the two objectives. Outcome Objectives can be documented using Balanced Scorecard or can be established as stand-alone objective statements per Department or Area, while Process Objectives MUST be documented using Quality Plan. To demonstrate, look at the set of Outcome Objectives below established by a Third Party Vendor-Managed Inventory (VMI) as our sample company.

Outcome Objectives

1. To achieve 100% accuracy in inventory by year end.
2. To attain 0 damage on stocks by year end.
3. To reduce customer complaints by 50% by year end.

Quality Plan

Process Name	Item to be Controlled	Dimension	Standard	Person Responsible	Control Methodology	Frequency of Monitoring	Documentation
Receiving of Incoming Shipment and Unloading of Stock	CEWE, Invoice/Packing  List, Boat Note,BL, AWB, Stock	Completeness Accuracy	Import Documents should match with the actual stocks received	Warehouseman 1	Counter Checking by Warehouseman 2	Every incoming shipment	VMI 7.5.1-005
		Quality	0 Damage			Every  unloading
Put-away and storage	Stock	Accuracy	Storage location as per Stocks Location Reference Guide Location code should be identified in the Invoice/Packing List	Warehouseman 1	Physical Count and Location Check by Order Administrator I	Every incoming Shipment	VMI 7.5.1-006
System Receiving using Inventory System (IS)	Import Documents	Accuracy	Documents should match with actual stocks received	Order Administrator 1	Review of Documents versus System  and confirmation by Warehouse Supervisor	Every Receiving Transaction	VMI 7.5.1-006
		Timeliness	Must be done within 24 hours upon unloading	Order Administrator 1	Checking of Receiving Reports against IS by Warehouse Supervisor	Every Receiving Transaction	VMI 7.5.1-006
Delivery document Preparation	Delivery documents	Accuracy and completeness	Details should match with delivery reference  documents Pull/Withdrawal Request, Delivery Invoice(if any), APC DR(if any), ASBN(if any)	Order Administrator 1	Counter checks delivery documents against Pull Request by Warehouseman	Every delivery/pick-up	VMI 7.5.1-007 VMI 7.5.1-008
		Timeliness	Must be prepared within 24 hours upon receipt of Pull Request	Order Administrator 1	Monitoring of Pull Request by Warehouse Supervisor	Daily	VMI 7.5.1-007 VMI 7.5.1-008
Picking  & Issuance	Stocks	Accuracy	Quantity and part numbers of stocks for delivery match with Pick List Actual Location code of stocks matches with the Pick List	Warehouseman 1	Check by Warehouseman 2 /  Guard on Duty Cycle count by Inventory Controller	Every Delivery Per Rotating Inventory Count Schedule	VMI 7.5.1-007 VMI 7.5.1-008 VMI 7.5.1-009
Delivery	Stocks	Completeness and quality	Stocks are in accordance with the Delivery Order	Trucker / helper	Checked by Dispatcher / Warehouseman Acknowledgment of delivery by vendor’s client	Every Delivery	VMI 7.5.1-007 VMI 7.5.1-008
Cycle Count & 100% Count	Cycle Count Report & 100% Count Report	Accuracy Timeliness	0 error in counting Must be submitted within 2 days from Rotating Inventory Count Schedule	Inventory Coordinator	Review of Count Reports by Warehouse Supervisor	As schedule	VMI 7.5.1.009 VMI 7.5.1.011

It must be noted that the above outcome objectives were based on customer requirements or the needed end result to maintain viability of the business. To attain such customer-oriented outcome objectives, the company established the processes with its objectives in the form of process standard that must be adhered to by person responsible. Such document is called the Quality Plan. Such document specifies the service or product realization processes.

Each process is composed of a combination or all of the 4M’s: man, machine, method and materials.  Each ‘M’ demonstrates some critical characteristics that need ‘controlling’ and minimize its variations. Inability to do so, problems such as erroneous documents, damage to properties and wrong data, among others, may occur. As such, ‘Item to control’ must be carefully determined. Notice also the dimensions accuracy, timeliness, quality and completeness. These dimensions are the bases for establishing the needed process standards (or the process objectives). Such are the ones to describe the critical aspect/s of the ‘Items to be controlled’ that will serve as guide in determining the needed standard. For instance, if the critical aspect of the “Item to be controlled” is timeliness, then standard must be in the form of the needed Turn-Around time (TAT)/or time-frame to do a certain requirement.

Collectively, the dimensions that were mapped-out in the quality plan, if properly addressed should fulfill one or a combination of the above outcome objectives. To ascertain adherence to the standard, a control methodology is established which serve as the check and balance for the person responsible in the process. To further the needed controls, the company established the procedures as referenced in the Support Documentation column which may detail the step-by-step activities to execute the process and ensure compliance with the set standard.

To conclude, and as mentioned, the key to value-adding QMS documentation is to avoid redundancies. That is, to document requirements where they can be relevant and will facilitate monitoring.