Nonfinancial Measures of Internal-Business-Process Quality
Companies routinely use nonfinancial measures to track the quality improvements they are making. Photon’s managers use the following nonfinancial measures of internal-business-process quality:
- Percentage of defective products manufactured
- Percentage of reworked products
- Number of different types of defects analyzed using control charts, Pareto diagrams, and cause-and effect diagrams
- Number of design and process changes made to improve design quality or reduce the costs of quality
Photon’s managers believe that improving these measures will lead to greater customer satisfaction, lower costs of quality, and better financial performance.