Understanding The ISO/TS 16949:2002 Standard 

5.4 Planning  

5.4.1 Quality Objectives 

Top management shall: 

        Ensure quality objectives are established (including those needed to meet product requirements (see 7.1a)  

        Set them at relevant functions and levels within the organization 

        Set measurable quality objectives 

        Keep these quality objectives consistent with the quality policy 

5.4.1.1 Supplemental Objectives 

        Top management shall define quality objectives and measurements 

        These shall be included in the business plan and use to deploy quality policy. (See IATF guidance) 

Note : Quality objectives should address customer expectations and be achievable within a defined time period 

Key Explanation Points and Tips: 

Þ      Clause 4.1e requires you to plan quality objectives for QMS processes and clause 7.1 requires objectives for product. Clause 8.2.3 and 8.2.4 require you to monitor and measure and evaluate results to your planned objectives. This clause 5.4.1 sets out specific requirements for planning of quality objectives. 

Þ      Top management must provide the leadership, organization and resources to deploy and achieve quality objectives. 

Þ      From the previous clause 5.3 we learned that the quality policy must provide the framework for establishing quality objectives in order to be consistent with it and provided examples of such consistency. In this clause, top management must ensure that specific quality objectives are established.  

Þ      Use quality objectives to measure the performance of products; processes; customer satisfaction; suppliers; use of resources; and the overall performance and effectiveness of the QMS. Quality objectives may be established for all QMS processes. 

Þ       Examples of quality objectives: 

Þ      Product - reduction in defect rates, PPM’s (defective parts per million); improvement in product life; durability; reliability; timing; cost; on time delivery; etc. (see clause 7.1a; 7.3.2.1). Also review specific PPM requirements at OEM customer or IATF websites. 

Þ      Cost of poor quality (internal and external) – reduction in - scrap; rework; disposal; re-inspection; product recall; warranty; etc. 

Þ      Process – objectives generally focus on improving process productivity through the elimination or reduction of variation and waste in process – inputs, outputs, conversion activity and related use of resources. Objectives may be used to monitor and improve process – productivity; reduction of cycle time, errors, omissions and failures; etc. Examples could include objectives for - set-up time; run rates; process cycle time; scrap rates; etc. (see clause 7.3.2.2; 7.5.1.4; 7.4.3.1). 

Þ      Customers - # of complaints; customer satisfaction rating; on time delivery; service; support, etc, (see clause 8.2). 

Þ      Suppliers – material defects; on time delivery; # of complaints with supplier. 

Þ      Resources – (includes facility; equipment; labor; etc.) – objectives could be established based on availability; capability; maintenance; personnel competency, absenteeism; production rates; efficiency; safety; etc. 

Þ      For the QMS – customer satisfaction feedback; internal audit results; # of improvement opportunities; etc.  

Þ      Remember the purpose of quality objectives is to determine conformity to (customer and regulatory) requirements, and effective deployment and improvement of the QMS 

Þ      Quality objectives may be set at various functional levels of the organization – top management; departments; processes; functional groups; work cells; project teams; individuals; etc. It would be useful to cover all these levels as all should add value and contribute to customer or organizational objectives.  

Þ      Quality objectives must be measurable. Measurement can be done quantitatively or qualitatively. Qualitative measures are generally more objective in determining whether conformity or effectiveness has been achieved. In some situations, the use of qualitative measurements may be appropriate. Objectives based on yes/no criteria, (e.g. – develop new product by March 2006), are also acceptable.  

Þ      Clause 5.4.1.1 Supplemental - Under TS 16949, you must have a business plan approved by top management that contains quality goals, objectives and measurements for the organization, including those for quality.  You must have a process for creating, distributing and monitoring the quality objectives defined in the business plan. 

Þ      These quality objectives must be deployed and measured (see clause 8) and top management must conduct an effective review of the measurement results. These measurement results must also be used for corrective action and continual improvement.   

Þ      The quality objectives must be achieved within a defined time period to ensure accountability. This could be determined by your customer, your management, your head office, regulatory bodies, etc. Your business plan must establish these time periods and your business planning process must include the communication of objectives and timelines to those responsible for achieving them. 

Þ       The establishment of quality objectives should be part of the business planning or QMS planning processes. The output of business planning should be a Business Plan which must include your quality objectives. A review of the quality objectives should be part of your management review process (see clause 5.6). As a quality document, your business plan must be controlled by 4.2.3 control of documents.  

You have to be careful not to overwhelm your organization with too many objectives as this may cause more frustration than positive results. Start with objectives that focus on meeting customer requirements and then slowly develop meaningful objectives for key processes and risk prone processes, as initial targets are achieved.