TVP – Metric 36 Defects Reported

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1. Metric Definition

A measure of the lack of quality in a finished product or service of R&D or the innovation process, for example, the number of defects reported at any stage by downstream operations, “bugs” found in computer programs, defects as shown by the number of change orders issued to manufacturing or operations, or number of end customer complaints.

This metric provides an overall measure of issues not usually identified as part of the R&D process.

2. Advantages and Limitations

The advantage of this metric is that it tabulates ultimate causes of customer dissatisfaction. It is important for diagnosis to identify which defects were caused by design in R&D, and which were caused by downstream operations and not attributable to R&D such as faulty scale-up, manufacturing flaws, or packaging problems. This has the advantage over the Product Quality and Reliability metric because it records the deficiencies identified along the technology transfer process.

Its primary limitation is that it comes rather late, after the internal or external customer has found the problem that was missed in the R&D process. Just as for any quality inspection system, it is better to do it right the first time. Quality cannot be inspected after the project has left R&D.  The company must also be careful to develop a historical norm for this metric, as simple counts of defects or consumer complaints may not account for the increased response as a result of the product being new and innovative.

3. How to use the Metric

Like other quality metrics, this is best kept as a running average over a time period; short enough to provide as prompt a feedback as it can, but sufficiently long to smooth out the ups and downs.

4. Options and Variations.

See also Product Quality & Reliability metric.

5. Champions and Contacts

6. References

Lutz, Robert A. 1994. Implementing Technological Change with Cross-Functional Teams. Research-Technology Management, 37(2), March-April, pp. 14-18.