NB: This is an excerpt from our eGuide “Top 4 KPIs for Data-Driven Quality Management.” To download the full eGuide, click here.
Data-driven quality management provides you with the unique opportunity to fill in information gaps by giving you 360-degree visibility within your production network. The next great step in data-driven quality management is the utilization of artificial intelligence (A.I.) and machine learning to optimize data collection and analysis in real time—giving brands and retailers better opportunities than before to catch problems early on.
Since quality control and assurance are tricky to measure, the resulting lack of measurement leaves companies with no way to pinpoint the issues that need solving or to navigate their efforts towards improvement. For this reason, KPIs are invaluable. We summarize the top 4 KPIs to measure your quality management:
1. Right First Time (RFT)
This highly useful KPI helps you gauge the quality level of your production process by taking a critical look at the final product. RFT measures the number of garments out of your total production quantity that emerge from your production line with no defects and no modifications to be made before the sale. In other words, RFT answers the question: Out of all the total garments you produce, how many of them are perfect?
Once that number is obtained, you can use it to figure out your RFT percentage. The fewer defective items that leave your production line, the higher your percentage. The ultimate goal is to reach a point where you’re producing zero defective products for an RFT of 100%.
The defect rate is another handy KPI that can help you gauge what kinds of defects are most likely to pop up in the future and where. This KPI tells you how many defects you can expect to find in any given unit, based on historical data gathered via inspections over time. The defect rate is calculated by dividing the number of defects observed over the number of units inspected.
Since quality is such a huge determining factor in whether or not your company will be able to get a leg up on the competition, you want to ensure that you’re collecting and analyzing the quality data needed to actually cut down your defect rate. The lower the defect rate, the better this KPI is—and the better your production strategy is working.
Out of all the inspections that are carried out, the “inspection pass rate” addresses the number of those inspections that pass. This metric is a good one to keep an eye on since it gives you a good idea of how well each specific link in the supply chain is performing. The higher the inspection pass rate, the better this KPI is.
You’re undoubtedly already familiar with the fact that customer satisfaction is a massive factor in the success of a company, and the internet has made it easier than ever for you to use customer feedback to your advantage. The voice of the customer (VOC) is highly valuable as a tool to gather data on your level of success—especially when it comes to boosting your brand’s reputation and demonstrating concern for the customer’s needs. Retailers and brands should encourage customers to leave feedback and ratings on their purchases, and then use their overall ratings as a KPI. And, of course: The better your rating, the better the KPI.
How can you collect customer ratings and use the voice of the customer in your approach to data-driven quality management?