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Key Performance Indicators (KPI) by Bernard Marr

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Quality index

Strategic perspective

Operational processes and supply chain perspective

Key performance question this indicator helps to answer

How is the organisation ensuring that it is delivering products/services that are fit for purpose?

Why is this indicator important?

The pursuit of ‘quality’ has been something of an obsession within many organisations across most industries and sectors since quality gurus such as W. Edwards Deming, Josef Juran and Philip Crosby introduced the principles of Total Quality Management (TQM) to Western firms struggling to compete with quality-savvy Eastern competitors (most notably from Japan).

However, the challenge is that there are many definitions of what the term ‘quality’ means in an organisational ...

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