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KPI Library – Quality Index

Quality Index


The word “Quality” requires qualification in terms of its context and to what extent it is considered to be poor or good; in business the objective is usually to ensure that the goods/service are fit for purpose and meet with the customer’s expectations while still affording a commercial organisation the opportunity to make a profit. The Quality index is intended to allow evaluation of key factors which contribute to the makeup of “appropriate quality” and may including the following; fit for purpose, customer expectation, cost of quality, component percentage error, components identified as outside specified tolerance etc.


Select appropriate key factors (5 – 10) for evaluation, each is then scored and where necessary weighted to highlight the importance to the organisation. The final figure is usually expressed as a percentage.


A design agency might select a time to complete, rework hours and customer complaints as three factors with a 2x weighting on rework hours.  Each factor could be expressed as a percentage and then averaged to provide the final percentage.