Avoid doing these poor practices
Not measuring process outputs.
Statistical manipulation of data
to support a position rather than analysis of the system.
Only one or two indicators to indicate
quality of product or service supplied (eg, "In-full
and On-time")
Measurement and process thinking
is poorly developed.
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Do these good practices
Measuring the outputs of all key,
core and support processes.
Rate of improvement is measured for
all key, core and support processes.
Special cause variation identified.
Working to reduce the variation in
all major processes, products and services.
Extensive use of control charts –
which are understood – to present and help understand
data.
Working in the levels of five or
six sigma.
Making use of the concepts of variation
and trends to assist decisions based on measuring and monitoring
of processes.
A comprehensive set of measurements
is built into the production process to ensure minimum variation
and consistently high quality of products and services.
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Principle 4 - To improve the outcome, improve the system (Item 9)
In order to improve the outcome; improve the system and its associated
processes.
Corollary: All people work in a system: outcomes are improved
when people work on improving the system
Measurement is critical to all process improvement. You must know:
- the quality and consistency of inputs
- the quality and consistency of outputs
- the volume of inputs and outputs
- progress towards targets
- calculation of the capability of the process
Related forms of measurement are discussed in other Principles. Principle
3 describes meeting customers' specifications. Principle 6 looks at
dealing with variation in measurements obtained. Principles 2 and
10 look at measurement to ensure you reach you goals, objectives and
targets and balance your stakeholder needs.
In Principle 4, we are concerned mainly with process measurements.
Useful measurements include:
- throughput measurements including rates of throughput
- ratio of throughput to maximum capacity
- process capability
- ratio of throughput to process capability
- inventory (all types, e.g. raw materials, work in process, finished
goods, delivered but not paid for)
- operational expenses
- cycle time
- response time
- maximum overdue
- idle time on bottleneck
- number of orders shipped
- value of orders shipped
- number of orders that have shipped compared with number orders
that could have shipped
- waiting time (for information or another part)
- queuing time (for a person or a machine)
You often need to set performance levels, specifications
or standards to assist on-the-job decision-making. Measurement of
in-process specifications is important and must be done as early as
possible in a process to minimize problems due to deviations from
expected performance. When deviations occur, corrective action must
be applied to restore the process to its specifications. Proper correction
involves identifying and changing the root cause of the deviation.
The correction could be technical, a process adjustment or involve
human factors. Corrections should minimize the likelihood of this
type of deviation occurring ever again, anywhere in the company. Measurement
with specifications is described in detail in Principle 6 (`Variability').
You must evaluate, by measurement, how well
the process meets the different needs of the various customers of
the process (internal and external). You should use the methods described
in Principle 3 (`Customers').
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"A simple run
chart gives a lot of insight into the capability of the
process" Deming: Out of the Crisis
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