This plan focuses on enhancing Quality Assurance in Finance by identifying key metrics crucial to maintaining and improving product and service quality. Metrics like Defect Rate and First Pass Yield (FPY) help in assessing the production process's efficiency and effectiveness. For instance, a low Defect Rate signifies fewer issues in products or services, aligning with customer expectations and enhancing satisfaction.
Customer Complaint Rate and Audit Compliance Rate serve as indicators of operational excellence and customer satisfaction. A high Audit Compliance Rate ensures adherence to necessary standards, reducing risks and enhancing trust in financial operations. Corrective Action Effectiveness measures ensure that solutions are effectively reducing issues, promoting a culture of continuous improvement and accountability.
Top 5 metrics for Quality Assurance in Finance
1. Defect Rate
The percentage of products or services that have defects relative to the total produced, often calculated by dividing the number of defective units by the total number of units produced.
What good looks like for this metric: Typically less than 1%
How to improve this metric:- Implement stricter quality control processes
- Enhance staff training initiatives
- Conduct regular audits and inspections
- Utilise root cause analysis tools
- Increase customer feedback collection
2. First Pass Yield (FPY)
The percentage of products manufactured correctly and to specification the first time through the process without using rework.
What good looks like for this metric: 85%-95%
How to improve this metric:- Improve process documentation
- Increase equipment maintenance frequency
- Optimise employee onboarding and training
- Reduce process variability
- Incorporate automated quality checks
3. Customer Complaint Rate
The number of customer complaints received over a specific period divided by the number of transactions within that period.
What good looks like for this metric: Less than 5 per 1,000 transactions
How to improve this metric:- Improve after-sales support
- Analyse customer feedback for trends
- Maintain open communication channels
- Enhance product/service quality
- Regularly revise protocols based on feedback
4. Audit Compliance Rate
The percentage of audits that pass compliance checks relative to the total number of audits conducted.
What good looks like for this metric: Above 95%
How to improve this metric:- Regularly update compliance training for staff
- Automate compliance tracking
- Engage third-party compliance experts
- Conduct more frequent internal audits
- Develop corrective action plans for identified issues
5. Corrective Action Effectiveness
Measures the success of implemented corrective actions, determined by the reduction in defects and issues post implementation.
What good looks like for this metric: Reduction in issues by at least 75%
How to improve this metric:- Utilise a robust change management process
- Track and measure results of actions
- Ensure clear communication of changes to all stakeholders
- Perform regular follow-up checks
- Encourage continuous improvement culture
How to track Quality Assurance in Finance metrics
It's one thing to have a plan, it's another to stick to it. We hope that the examples above will help you get started with your own strategy, but we also know that it's easy to get lost in the day-to-day effort.
That's why we built Tability: to help you track your progress, keep your team aligned, and make sure you're always moving in the right direction.
Give it a try and see how it can help you bring accountability to your metrics.
