KPIs and KRIs for Quality: Why We Need Both

KPIs and KRIs

When managing quality, most companies focus on KPIs (Key Performance Indicators) – the measures that show how well goals are being achieved: defect rates, customer complaints, on-time deliveries. KPIs are essential, but by nature they are reactive – they measure what has already happened.

On the other hand, there are KRIs (Key Risk Indicators) – measures that highlight potential risks before they turn into real problems. If a KPI tells us how many defects were found, a KRI reveals where defects are most likely to occur. KRIs are therefore proactive – they help prevent issues, not just fix them.

Example:

  • KPI: Customer complaint rate < 50 ppm.
  • KRI: % of complaints without corrective actions > 0%.

Together, KPIs and KRIs give a complete picture: they show how successful we have been and where the biggest risks may lie in the future.

Table: KPI & KRI for Quality

How DAM and PMB Support Quality Management

DAM – Daily Audit Management

Indicators alone are not enough. Companies need a system to check whether processes, controls, and quality systems are actually working in practice. This is where DAM – Daily Audit Management comes in: a digital tool that enables easy, systematic, and consistent audits.

With DAM, companies can:

  • perform daily audits across all levels (from incoming quality to customer complaints),
  • quickly identify deviations and risks,
  • ensure full traceability and transparency of findings,
  • make sure corrective actions are actually implemented and monitored.

The result? Problems are prevented before they reach the customer.

PMB – Performance Management Board

While DAM handles audits and supports the management of  KRIs, the PMB – Performance Management Board is designed for managing and visualizing KPIs and KRIs. It ensures that performance indicators are not just numbers in a spreadsheet, but are actively monitored, communicated, and acted upon.

With PMB, companies gain:

  • transparent, real-time KPI dashboards,
  • a single communication platform across all organizational levels,
  • faster decision-making thanks to clear visibility of deviations and trends,
  • a culture of accountability – KPIs as drivers of action, not just reports.

The result? KPIs guide everyday decision-making and improvement efforts.

Figure: Example of goals and performance indicators visualized in the PMB tool

Conclusion

  • KPIs tell us how well we are meeting our goals.
  • KRIs warn us where risks may arise.
  • DAM – Daily Audit Management ensures risks are systematically controlled and problems prevented.
  • PMB – Performance Management Board makes sure KPIs are actively managed and used to drive organizational excellence.

Together, they form a powerful combination for any company aiming to master quality management and build a culture of continuous improvement.

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