– Using the matrix, companies can easily identify their own relevant key figures that will help them gain control of their entire supply chain, from start to finish in the production. What you cannot measure, becomes difficult to improve, says Aron Chibba who recently presented his thesis in Quality Engineering at Luleå University of Technology.
A company that holds a specific quality standard can certificate themselves according to the ISO standard. This increases their competitive advantage and their ability to attract new customers. In 2015, the requirements for ISO 9001 certification got stricter and now companies need to measure their processes using for them specific figures. The matrix that Aron Chibba has developed can help to ensure the quality of the supply chain, ie the flows of products, services, finance and information that a manufacturing process consists of.
– To meet the new standards of ISO 9001, organisations must apply the right methods to ensure the effective operation and control of its processes. This includes monitoring and measuring performance indicators, he says.
Improvement in the entire supply chain
Previous studies show that large companies often measure the efficiency with KPIs that do not depict the characteristics that are crucial to the organisation's performance. It makes them inadequate when the supply chains will be analysed.
– One of the conclusions of my thesis is that a company should focus on product quality and delivery reliability in all processes within the organisation, not just the final product quality. In this way, the company can get information about the current situation and assess what improvements are needed at every stage of the production chain, says Aron Chibba.
The matrix should be updated on regular basis
The companies also need to revise their KPT-matrix and the key figures that they identified, says Aron Chibba.
– They should be evaluated at least once a year and replaced if there are changes in the supply chain. For example, if the company enters a new market, changes the product or changes suppliers.