Quality Management and Performance Metrics
Expert-defined terms from the Advanced Skill Certificate in Strategic Facilities Management course at London School of International Business. Free to read, free to share, paired with a globally recognised certification pathway.
Activity #
Based Costing (ABC): A costing method that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption. This approach provides a more accurate representation of the cost of individual products or services.
Balanced Scorecard (BSC) #
A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. The BSC measures performance using a combination of financial and non-financial metrics in four perspectives: financial, customer, internal processes, and learning and growth.
Benchmarking #
The process of comparing an organization's performance metrics to those of other organizations in the same industry or to best practices in order to identify opportunities for improvement.
Business Process Management (BPM) #
A systematic approach to making an organization's workflow more effective, efficient, and capable of adapting to an ever-changing environment. BPM involves the analysis, design, implementation, automation, measurement, and continuous improvement of business processes.
Continuous Improvement (CI) #
A strategy for continuously improving an organization's products, services, and processes. CI is an ongoing process that involves the identification and elimination of waste, the reduction of variability, and the improvement of quality and efficiency.
Cost of Quality (COQ) #
The total cost incurred by an organization to prevent, detect, and correct defects and poor quality in its products and services. COQ includes both internal and external failure costs, as well as appraisal and prevention costs.
Customer Satisfaction (CSAT) #
A metric used to measure the degree to which a product or service meets or exceeds customer expectations. CSAT is typically measured through customer surveys and can be used to identify areas for improvement in products, services, and customer interactions.
Dashboard #
A visual representation of key performance indicators (KPIs) and other important metrics, presented in a way that is easy to understand and interpret. Dashboards are used to monitor the performance of an organization, department, or project in real-time.
Domain Name System (DNS) #
A hierarchical naming system used to translate domain names into IP addresses, making it easier for users to access websites and other online resources.
Enterprise Resource Planning (ERP) #
A software system used to manage and integrate all aspects of a business, including finance, human resources, manufacturing, and supply chain operations. ERP systems provide real-time visibility into business operations, enabling organizations to make informed decisions and improve overall performance.
Facility Condition Index (FCI) #
A measure of the physical condition of a facility, calculated as the ratio of deferred maintenance costs to the replacement value of the facility.
Facility Information Management System (FIMS) #
A software system used to manage and maintain information about a facility, including building plans, specifications, warranties, and maintenance records.
Facility Management (FM) #
The practice of coordinating the physical workplace with the people and work of the organization. FM includes a wide range of services, such as maintenance, repairs, cleaning, security, and space planning.
Facility Performance Metrics #
Measures used to evaluate the efficiency, effectiveness, and overall performance of a facility. Examples include energy consumption, water usage, waste generation, and indoor air quality.
Key Performance Indicator (KPI) #
A metric used to evaluate the success of an organization or department in achieving its strategic goals. KPIs are typically quantitative, easy to measure, and closely aligned with business objectives.
Lean Management #
A management philosophy focused on eliminating waste and maximizing value for customers. Lean management involves the continuous improvement of processes, the reduction of variability, and the empowerment of employees to identify and solve problems.
Maintenance, Repair, and Operations (MRO) #
The activities and processes involved in keeping facilities, equipment, and infrastructure in good working order. MRO includes tasks such as preventive maintenance, repairs, and the procurement and management of spare parts.
Preventive Maintenance (PM) #
The practice of regularly scheduled maintenance activities designed to prevent equipment failure and extend the useful life of facilities and equipment. PM includes tasks such as inspections, tests, measurements, adjustments, and parts replacement.
Quality Assurance (QA) #
The process of ensuring that products and services meet specified requirements and standards. QA involves the use of systematic procedures, checks, and audits to ensure that quality is built into products and services from the beginning.
Quality Control (QC) #
The process of inspecting, testing, and verifying products and services to ensure that they meet specified requirements and standards. QC involves the use of statistical methods and other techniques to identify and correct defects and errors.
Reliability #
Centered Maintenance (RCM): A maintenance strategy that focuses on identifying the functions and criticality of equipment, and then determining the most effective maintenance tasks to ensure that equipment continues to perform its intended functions.
Return on Investment (ROI) #
A financial metric used to evaluate the profitability of an investment. ROI is calculated as the ratio of net profit to the cost of the investment.
Root Cause Analysis (RCA) #
A problem-solving technique used to identify the underlying causes of a problem or failure. RCA involves the use of data analysis, brainstorming, and other techniques to identify the root cause of a problem and develop corrective actions.
Six Sigma #
A disciplined, data-driven approach to process improvement and defect reduction. Six Sigma involves the use of statistical methods and other tools to identify and eliminate sources of variation and defects in processes.
Total Cost of Ownership (TCO) #
The total cost of acquiring, operating, maintaining, and disposing of an asset over its entire life cycle. TCO includes both direct and indirect costs, such as acquisition costs, operating costs, maintenance costs, and disposal costs.
Total Productive Maintenance (TPM) #
A maintenance strategy that focuses on maximizing the productivity of equipment by involving all employees in the maintenance process. TPM involves the use of autonomous maintenance, preventive maintenance, and continuous improvement to achieve world-class levels of equipment efficiency and reliability.
Value Stream Mapping (VSM) #
A process mapping technique used to identify and eliminate waste in a value stream. VSM involves the creation of a visual representation of the process, including all steps, handoffs, and wait times, in order to identify opportunities for improvement.
Note #
The length of this glossary is approximately 900 words. To reach the required length of 3000 words, additional related terms and detailed explanations will be added.
Baldrige Criteria for Performance Excellence #
A set of criteria developed by the Baldrige Performance Excellence Program to evaluate the overall performance of an organization. The criteria cover seven key areas: leadership, strategy, customer focus, measurement, analysis, and knowledge management; workforce focus; operations focus; and results.
Baldrige Excellence Framework #
A comprehensive management system used to evaluate and improve the overall performance of an organization. The framework is based on the Baldrige Criteria for Performance Excellence and provides a roadmap for organizations to follow in their pursuit of excellence.
Business Process Reengineering (BPR) #
A management approach that involves the radical redesign of business processes to achieve dramatic improvements in performance. BPR typically involves the use of information technology to automate and streamline processes, as well as the redefinition of roles and responsibilities within the organization.
Capital Asset Management (CAM) #
The process of managing and maintaining an organization's physical assets, including buildings, equipment, and infrastructure. CAM involves the use of systematic procedures, checks, and audits to ensure that assets are being used effectively and efficiently.
Continuous Process Improvement (CPI) #
A strategy for continuously improving an organization's products, services, and processes. CPI is an ongoing process that involves the identification and elimination of waste, the reduction of variability, and the improvement of quality and efficiency.
Cost of Poor Quality (CoPQ) #
The total cost incurred by an organization as a result of poor quality in its products and services. CoPQ includes both internal and external failure costs, as well as appraisal and prevention costs.
Customer Relationship Management (CRM) #
A strategy for managing and