Discuss why organizations need to have the correct performance metrics to drive quality. Think of examples in the news and their outcomes. For example:
Toyota and the recalls
BP and the Gulf oil disaster
NASA and the Space Shuttle disasters
What behaviors were being driven by their metrics? Identify whether they were the correct behaviors or the wrong behaviors.
Importance of correct performance metrics in quality
Performance measurement is gaining momentum in measuring how well an organization or individuals has performed against set standards and others in the same field. Performance measurement is essential in total quality management in an organization and also in ensuring efficiency and effectiveness (Pekkola & Ukko, 2011). An organization conducts performance measurement in order to improve products, in setting goals, improving communication and in order to provide information for driving improvement within the organization (Pekkola & Ukko, 2011).
Performance measurement is important in ensuring that an organization is running optimally to maximize on revenue generation and is also used to identify quality problems and determine areas that require immediate attention. Through appropriate performance measurement, an organization can improve quality since investigations will provide systems and practices that require an adjustment in order to improve performance (Slizyte & Bakanauskiene, 2007). When performance is improved the end result is improved quality of service or good and in working conditions. It is, therefore, important to ...
The following posting discusses why it is important to have correct performance metrics to drive quality.