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The Quality Performance Kit HandbookChapter 7 of 20

Setting targets and watch limits

A target says where the business wants a measure to be. Set it from one of four starting points, and write down which:

Starting pointWhen to use itExample
The customer's requirementWhenever a customer scores you or writes a level into the contractCustomer returns below 500 PPM, from the customer's scorecard
The objectiveWhen the measure carries a quality objective for the yearOn-time delivery 95 percent, objective O-26-01
The baseline plus a planned stepWhen you have a year of data and an action plan big enough to move itScrap and rework from 1.9 to 1.5 percent of sales
ZeroFor events that should never happen and are rare enough to count one by oneCustomer escapes

Then set a watch limit: how far short of the target you accept before the measure counts as off target and needs an action. Between the target and the watch limit, the measure is on watch: noticed, commented on, not yet acted on. Leave the watch limit blank where any miss needs action.

Targets are changed only at management review, with the reason in the minutes. A target that moves between reviews teaches everyone that targets are negotiable, and the twelve-month trend stops meaning anything.

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A management aid, not certification or a registrar audit. Using it does not by itself show conformity to AS9100D or any other standard, and your customers' requirements may add to it.

Clause numbers refer to AS9100D (SAE AS9100 Rev D) unless another document is named. The standards' text is not reproduced here: use your own licensed copy.

Aegis Insights are our own guidance, labeled wherever they appear: how we approach this work, not a requirement of any standard or customer.