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5.4.1 Quality Objectives

Top management shall ensure that quality objectives, including those needed to meet requirements for product [see 7.1 a)], are established at relevant functions and levels within the organization. The quality objectives shall be measurable and consistent with the quality policy. From BS EN ISO 9001:2000

This is a new section in the standard and is the cornerstone to connect business operations with the planning stage of ISO 9001:2000 implementation. The setting of objectives was implied in the 1994 version concerning customer needs, but it wasn't specific. Now, all objectives must be measurable and they must come from top management.

Top management is responsible for this important step, because if an organization delegates the setting of objectives too far down the organizational chart, there is a risk that the objectives may not align with the overall objectives of the business.

A quality objective is defined in ISO 9000:2000 as "something sought, or aimed for, related to quality." There is no prescribed number of objectives that must be set for the organization, and the standard doesn't say that each part of the business must have them. But the objectives should be able to demonstrate product quality and they should be cross-functional across the organization. And if your quality policy states you will produce defect-free products, you'd better have an objective that measures defect levels. If the policy states on-time delivery, you'd better have a shipping objective. (Note: Organizations should understand that process objectives also are required in this clause and that reporting on process performance is a required management review agenda item.)

This easy-to-understand language was developed to be more compatible with ISO 14001 and environmental management systems, where the objectives for continual improvement and environmental performance are required to be measured. And, as with ISO 14001, your quality policy and objectives should go hand in hand.

To set objectives, organizations need to know where they currently are. In other words, you need to measure first to determine the appropriate target to set.

Chances are, even if you're registered under the ISO 9001:1994 standard, you'll need to revise your quality policy and objectives for the new requirements. But don't make the mistake of establishing too many objectives for the organization. This can become cumbersome and difficult to manage. Strive to set the correct number of objectives. To do that, make sure top management is involved or, at the very least, make sure top management gives its approval.

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