“Let’s be SMART this year!” … Always when beginning new year, some of us are asked to consider and refocus our attention on personal, departmental and company objectives. Companies committed to excellence understand that setting the right quality objectives is key to meeting customer expectations, complying with regulatory requirements, and fostering continuous improvement. In this article, we will explore “Setting Quality Objectives” to improve your organization’s current quality performance.
Quality Objective – what is it?
They are measurable goals that a company or organization defines and sets to improve its Services, Products and Processes. Quality objectives are the foundation of an effective quality management system (QMS). They provide a roadmap for achieving quality policies. Without well-defined objectives, organizations risk directionless effort, poor resource allocation, and stagnation in improvement initiatives. Moreover, quality standards such as ISO 9001 and IATF 16949 require organizations to establish measurable quality objectives as part of their compliance obligations. Further we will discuss the SMART idea of quality objectives.
Current Performance vs. SMART Quality Objectives
Let’s start with the current quality performance:
Unless you’re starting a brand-new company, the first step is to measure your current performance, this could be by checking the amount of scrap produced in the last 12 months, the number of internal issues raised by Production, the number of Supplier Concerns found, the amount of rework required and so on…
Achievable Objectives
Many organizations fail to realize their quality objectives because they are not realistic or achievable.
Example:
An organization has 300 supplier issues each month with a supply chain of 800 suppliers, setting an objective to start the year with zero defects and maintain this for 12 months is unrealistic.
Why is this unrealistic?
As Quality professionals, we want never to receive, never make and never send any defects. This is the fundamental goal of Quality Assurance and a “Zero Defect” mindset.
We should aim to achieve this state in increments. Setting unrealistic quality objectives can dishearten team members and lose focus on improvement.
Using SMART Quality Objectives
The SMART framework ensures that quality objectives are:
1. Specific
Objectives should be clear and unambiguous, leaving no room for misinterpretation. Instead of stating, “Improve product quality,” a specific objective would be, “Reduce product defect rates by 10%.”
Questions to ask:
What exactly do we want to achieve?
Who is responsible for this objective?
What resources or constraints are involved?
2. Measurable
If you can’t measure progress, you can’t manage it. Measurable objectives include clear metrics that enable tracking and evaluation. For example, instead of saying, “Enhance customer satisfaction,” a measurable objective might be, “Increase customer satisfaction scores from 85% to 90% within six months.”
Questions to ask:
How will success be measured?
What data or tools will be used to track progress?
3. Achievable
While ambition is good, objectives must be realistic given the available resources and constraints. An achievable objective acknowledges current capabilities and challenges while striving for improvement. Setting unattainable goals can lead to frustration and decreased morale.
Questions to ask:
Do we have the necessary resources, skills, and time?
Are external factors aligned with achieving this goal?
4. Relevant
Quality objectives should align with broader business goals and quality policies. For instance, a goal to reduce energy consumption is relevant for an organization committed to sustainability, while focusing on reducing lead times might be more relevant for a manufacturing company.
Questions to ask:
Is this objective aligned with our strategic priorities?
Does it contribute to customer satisfaction and regulatory compliance?
5. Time-bound
Every objective needs a deadline to create urgency and focus. A time-bound objective sets a clear timeline for achieving the goal. For example, “Reduce customer complaint resolution time to two days within the next quarter.”
Questions to ask:
What is the deadline for achieving this objective?
Are there interim milestones to track progress?
Example SMART Quality Objective
“SMART” is a great way to help set Quality Objectives. We’ve covered S.M.A.R.T. in a previous article, but repeating each step with an example helps convey the message.
Reduce internal rework of supplier defects by 10% in the second quarter of 2025.
SPECIFIC
The Objective is not vague in its statement.
MEASURABLE
The number of supplier defects and duration of time can be measured.
ACHIEVABLE
The Objective sets a realistic reduction of 10% within a certain period.
RELEVANT
The Objective is relevant to Quality.
TIMELY
The Objective is time-bound and does not have and is not endless.
Tips for Implementing SMART Quality Objectives
1. Involve stakeholders: in ISO 9001 point 6.2.2 says that when planning how to achieve quality objectives, you should specify:
- what is to be done;
- what resources are needed;
- who will be responsible;
- when it will be completed;
- how to evaluate the results.
Therefore ensure objectives are developed with input from relevant departments to promote ownership and alignment.
2. Regularly review progress: periodic reviews help keep objectives on track and allow for necessary adjustments. According to ISO 9001 point 6.2.1, the quality objectives should be monitored.
3. Use data effectively: leverage data analytics to measure outcomes accurately and inform decision-making. Remember that you must maintain documented information on quality objectives.
4. Communicate objectives clearly: make sure everyone in the organization understands the quality objectives and their role in achieving them. The quality objectives in quality management system compliant with the requirements of ISO 9001, should be established for the appropriate:
- functions,
- levels,
- processes,
needed for the quality management system.
Quality objectives in IATF 16949:2016
It’s important to understand the link between Quality Objectives and IATF 16949.
Section 6.2.2.1 specifies that objectives should be defined, established and maintained for the relevant functions, processes and levels throughout the organization. Especially if they are relevant to meet customer requirements.
IATF 16949 also states that top management is responsible for ensuring that these objectives are established and maintained.
The absolute difference from ISO 9001:2015 is the requirement in IATF 16949:2016 to set quality objectives and related performance targets (internal and external) (at a minimum) once a year.
Additionally, it should be:
- considered the results of the review regarding interested parties.
- and their relevant requirements.
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Let’s sum up!
Setting clear, relevant and achievable SMART Quality Objectives drives improvement in Quality, Performance and Customer Satisfaction. Quality Objectives must follow a SMART framework to be able to cascade into Key Performance Indicators. Many companies struggle to improve their Quality Performance due to unattainable objectives with unrealistic targets! We hope that with this articles you will avoid it in your organization.
Download the template for processes monitoring with use of objectives!
Do you want to know more?
We invite you to the ISO 9001 and IATF 16949 organized by Qualitywise, where you will learn in detail all the requirements for Quality Management System. Ask about the date.
Hope you found this article interesting.
Thank you for your presence.
For people who want to know more:
IATF 16949: 2016 Requirements for quality management systems in serial production and the production of spare parts in the automotive industry, 1st edition, 2016
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