Are you meeting your Customer's Needs?
How do you know if your customer's requirements are being met? Indicators, with facts help us
determine whether or not our processes are capable of meeting our customer's needs. An
indicator is defined as a measure of meeting valid requirements. Indicators are used to monitor
both the quality of the service or outcome of the process (quality indicators) and the effectiveness
or condition of a part of the work process (process indicators).
Whichever type of indicator you use, all indicators should be:

Measurable

Verifiable
(able to observe and
audit)

Cost Effective
They can be expressed quantitatively (in time, dollars, customer
specifications, etc.)
Multiple, independent observers of the process must be able to
agree on the results obtained from measuring the process.
Accurate records to be kept so that the measurements can be
tracked over time.
Indicators must be chosen with economy of time and cost in
mind. Ideally, dates for indicators will be available from existing
sources and/or management information systems. The benefits
gained from using an indicator should exceed the costs associated
with tracking it.
Quality Indicators: Measures used to determine the quality of the product or service provided to
the customers. By linking them closely to customer's negotiated requirements and reasonable
expectations (valid requirements) we are able to accurately assess our performance. In most
instances, customers have multiple valid requirements involving the accuracy, timeliness,
dependability or cost of the product/service provided. Before developing quality indicators, be
sure all of the valid requirements are understood.
While quality indicators assess the degree of conformance to valid requirements, they are usually
after the fact and are not useful in identifying the cause of nonconformance. A different type of
indicator, upstream in the process is needed for this purpose.
Process Indicators: Upstream measures taken at critical points in a process for assessing the
performance of a process before it's too late to do anything about it. Long before the service or
outcome of the process occurs, these indicators serve as early warning signs that something is
wrong. By monitoring and evaluating process indicators, corrective action can be taken on a
process before there is a significant adverse impact on the outcome of a process, hence, to our
customers.