Key Points

• A quality target is a nominal target given to a production or process to meet customer needs.
• Adherence to good targets results in higher customer satisfaction.
• It can also reduce costs, making it useful for any corporation to use.

What Is a Quality Target?

A Quality Target refers to a qualitative or quantitative value assigned to a required operation in the manufacturing or service process that affects a product’s end conformance to customer specifications. This value represents the maximum allowable discrepancies per 1,000 opportunities. Quality targets are determined by either the customer or the client. Depending on the process, there are different kinds of quality target values customers will expect. The end goal is to have as little variation around these targets as possible.

The most common quality targets are: (1) smaller is better, (2) larger is better, and (3) nominal is best. Specification limits can also help product designers understand where quality targets would fall in the product lifecycle.

1. Smaller Is Better

If the quality target is a smaller better type parameter, then it will generally just have one specification limit, the maximum. For example, consider how long a customer waits on hold to get a service request addressed. Ideally, the customer would like this to be as close to zero minutes as possible. Other examples include delay times, power consumption, or product defects. The target in an achievable low value is considered optimal by the client.

2. Larger Is Better

If the quality target is a larger is better type parameter, the specification limit will correspond to the minimum. A client will consider a product defective or unacceptable if it does not meet the target value. For example, if a fast food company promises speedy delivery, its target value would be 99.8% of deliveries made on time. Other examples include the battery life of electronics and test scores. Here, the target is an achievable high value considered optimal by the client.

3. Nominal Is Best

If the quality target is a nominal best-type parameter, it will have both upper and lower specification limits. The quality target sits between these two limits, or “the sweet spot.” Consider the example of a customer service call. An operator has to be sure to keep the call as short and productive as possible while still solving the issue at hand. The main quality target is an achievable value that would be considered optimal by most clients.

Striving for Quality

There are many reasons why you’ll want to set quality targets. However, what is paramount to keep in mind is that setting good quality targets is going to yield better returns to your business for the foreseeable future. If you’ve established customer trust, you’re guaranteeing customer loyalty in the long term.

3 Benefits of Quality Targets

1. Higher Customer Satisfaction Rates

Incorporating quality targets within the manufacturing or service process helps companies deliver consistent quality value to the customer. It gives them a product they are happy with, leading to higher customer satisfaction rates overall.

2. Better Quality

Critically-defined quality targets will ultimately push the quality of the ultimate product or service to be better overall, leading to reduced defects.

3. Reduced Costs

When quality targets are met and customers are satisfied, nonconformance costs go down and business profits can increase.

An Industry Example

To deliver the highest value to their customers, airline companies have to hit their target values as frequently as possible. Customers pay top dollar for flights, so usually expect their flight to not be delayed or canceled (smaller is better) and their luggage to arrive at the right destination 99.8% of the time (larger is better).

But, with so many external factors affecting this industry (including weather, global politics, and health concerns), airlines often set nominal as best parameters that will please the greatest amount of customers most of the time.

Best Practices When Thinking About Quality Targets

1. Quality Targets Should Be Well-Researched

There are many examples of companies assigning quality targets or specification limits arbitrarily to a random percentage. Project managers should consider what is needed to meet customer expectations instead of focusing on the most marginally-accepted product.

2. It Can Be Difficult to Set Quality Targets

Different customers or different customer sets can have vastly different expectations. Project managers should consider how, in the design phase, a product can be customized to meet the greatest number of customer expectations possible.

3. Any Business Can Implement Quality Targets

Quality targets aren’t just for companies that manufacture products. Any company that provides end-to-end service to a customer or client can benefit from highly-defined quality values that deliver better satisfaction rates.

Other Useful Tools and Concepts

Looking for other ways to bolster your business’s fortunes? Looking into containment might be a great way to ensure that products that aren’t meeting your quality targets are isolated before reaching your customers.

Additionally, taking a close look at the likes of tolerance range corresponds directly to quality targets. You’re going to have variance in your production, that’s just a part of life. However, learning how these ranges correspond to product quality is going to be something to keep in mind.