Meredith - Chapter 3

7/24/2019 Meredith - Chapter 3

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Copyright 2013 John Wiley & Sons, Inc.

Chapter 3

Controlling Processes


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3-2

Overview


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3-3

Intro!ction

" #ach year the Col!$%!s air $ail processingcenter '(C) processes in e*cess o+ 0$illion letters

" -n+ort!nately, ./ percent i not $eet onti$e elivery co$$it$ents

" ' Si* Sig$a i$prove$ent proect wasinitiate

" ate eliveries were re!ce %y 1.3 percentan 41,000 was save ann!ally

" On ti$e elivery is $onitore !sing a pchart


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3-4

(onitoring an Control

" (onitoring syste$ is a irect connection%etween planning an control

" (onitor processes, o!tp!t, anenviron$ent to $a5e s!re that strategy isappropriate to achieve goals67irst, ienti+y the 5ey +actors to %e

controlle

6Secon, ienti+y the relevant in+or$ation to%e collecte


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3-5

Process (onitoring

" 8here are a wie variety o+ ele$ents to

potentially $onitor

" 8oo $!ch ata can %e worse than too

little ata

6It can o%sc!re i$portant in+or$ation

" Want to $onitor o!r vario!s processes

" 'lso nee to $onitor the environ$ent


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3-6

Stages o+ Operational

#++ectiveness1. Internally ne!tral

6 (ini$i9e $an!+act!ring:s negative potential

2. #*ternally ne!tral6 In!stry practice is +ollowe

3. Internally s!pportive6 (an!+act!ring invest$ent s!pport the %!siness

strategy

. #*ternally s!pportive6 (an!+act!ring is involve !p +ront in strategic

ecision


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(eas!res +or Operational

#++ectiveness

Table 3.1


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;alance Scorecar

" In the past, it was co$$on to rely on +inancial$eas!res

" When inae

" (any organi9ations now reali9e no one type o+

$eas!re$ent is %est" 8he p!rpose o+ the %alance scorecar it to

provie a co$prehensive view


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;ene+its o+ ;alance

Scorecar" 'n e++ective way to clari+y an gain consens!s

o+ the strategy"

' $echanis$ +or co$$!nicating the strategythro!gho!t the entire organi9ation" ' $echanis$ +or aligning epart$ental an

personal goals to the strategy" ' way to ens!re that strategic o%ectives are

lin5e to ann!al %!gets" 8i$ely +ee%ac5 relate to i$proving the

strategy


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'reas (eas!re %y ;alance

Scorecar1. 7inancial per+or$ance

2. C!sto$er per+or$ance

3. Internal %!siness process per+or$ance

. Organi9ational learning an growth


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8he Strategy (ap

" -se to ill!strate an $onitor the ca!seane++ect relationships ienti+ie %y a

%alance scorecar" Provie a tool to %etter $onitor

i$portant etails a%o!t their strategic%!siness processes

" (aps sa$e +o!r perspectives as the%alance scorecar


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Sa$ple Strategy (ap

Figure 3.1


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ISO =000

" ISO =000 was evelope %y InternationalOrgani9ation +or Stanari9ation

"ISO =000 was evelope as a g!ieline +oresigning, $an!+act!ring, selling, anservicing pro!cts

" It is a >chec5list? o+ goo %!siness practices" Selecting an ISO =000 certi+ie s!pplier

provies so$e ass!rance that s!pplier +ollowsaccepte %!siness practices in areas covere

%y the stanar


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3-14

ISO 1000 an 1001

" Series o+ stanars covering environ$ental

$anage$ent syste$s, environ$ental a!iting,

eval!ation o+ environ$ental per+or$ance,environ$ental la%eling, an li+ecycle

assess$ent

" 7oc!s o+ ISO 1001 is on an organi9ation:s

environ$ent $anage$ent syste$6 ' stanar on which organi9ations can %eco$e

certi+ie


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3-15

7ail!re (oe an #++ect 'nalysis

7(#')" @evelope as a str!ct!re approach to

ienti+y an prioriti9e +or close

$onitoring" -ses a scoring $oel approach set !p in

si* steps

" One way to ienti+y ite$s +or incl!sionis %y eval!ating their process capa%ility


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3-16

7(#' Steps

1. ist ways a pro!ction syste$ $ight +ail

2. #val!ate the severity S) o+ each +ail!re

3. #sti$ate the li5elihoo L) o+ each +ail!re

. #sti$ate the a%ility to etect D) +or each

ca!se

. 7in ris5 priority n!$%er APBS @D. Consier ways to re!ce S, , an @ where

APB is high


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3-17

Process Control

" Process control is the act o+ re!cingi++erence %etween plan an reality +or each

process6 8o no avail i+ corrections not $ae

" Control is one o+ the $anager:s $ost i++ic!lttas5s involving $echanistic an h!$an

ele$ents" Control %rings per+or$ance %ac5 in line withthe plan


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3-18

Characteristics o+ a Eoo Control

Syste$" 7le*i%le

" Cost e++ective

" Si$ple" 8i$ely

" S!++iciently precise

" #asy to $aintain" Signal i+ o!t o+ orer

" Capa%le o+ %eing

e*tene

" 7!lly oc!$ente" #thical


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3-19

Statistical Process Control

1. Inspection +or varia%les

6 (eas!ring a varia%le that can %e scale

s!ch as weight, length, te$perat!re, ania$eter

2. Inspection o+ characteristic attri%!te)

6 @eter$ining the e*istence o+ acharacteristic s!ch as accepta%le

e+ective, ti$elylate, an rightwrong


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3-20

Chance Fers!s 'ssigna%le

Fariation" Chance variation is varia%ility %!ilt into

the syste$

" 'ssigna%le variation occ!rs %eca!seso$e ele$ent o+ the syste$ or so$eoperating conition is o!t o+ control

" G!ality control see5s to ienti+y whenassigna%le variation is present so thatcorrective action can %e ta5en


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3-21

Control ChartsControl Charts

" @evelope to isting!ish %etween chancevariation an assigna%le variation

" (eas!re$ents +ro$ the contin!e repetition o+so$e process are a pop!lation6Bor$ally istri%!te with so$e $ean an stanar

eviation

" 's long as istri%!tion stays the sa$e, theprocess is in control

" I+ it changes, the process is o!t o+ control


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3-22

Control Chart with i$its Set

at 8hree Stanar @eviations

Figure 3.2


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3-23

8wo Control Charts +or Faria%les

1. Sa$ple (eans Chart

2. Aange Chart


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3-24

Sa$ple @ata o+ Process 8i$es

Table 3.3


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3-25

Sa$ple Calc!lations

" Scenario 16Sa$ple 1H $ean , range 2

6Sa$ple 2H $ean /, range 26Sa$ple 3H $ean , range 2

" Scenario 2

6Sa$ple 1H $ean , range 26Sa$ple 2H $ean , range

6Sa$ple 3H $ean , range D


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3-26

Patterns o+ Change in Process

@istri%!tions

Figure 3.3


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3-27

Control i$its +or Sa$ple (eans

an Aange Charts


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3-28

Constr!cting Control Charts

" ' %an5 has 10 %ranches

" Wishes to $onitor the age o+

applications +or ho$e $ortgages" ;ranches selecte at rano$ an ages o+

the applications note

" Sa$ple si9e o+ +o!r o!t o+ the 10%ranches each ay

" @ata s!$$ary on ne*t slie


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3-29

(ean an Aange o+ 'ges o+

(ortgage 'pplications

Table 3.5


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3-30

7ining Control i$its


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3-31

(ean (ortgage 'pplication 'ge

Figure 3.4


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3-32

Aange in (ortgage 'pplication

'ge

Figure 3.4


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3-33

7raction@e+ective ) Charts

pp

pp

p

zp

zp

n

pp

p

=

+=

=

=

C

-C

)1

sa$ple!nitso+n!$%ertotal

e+ectso+n!$%ertotal


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3-34

B!$%ero+@e+ects c) Charts

cc

cc

c

zc

zc

c

c

=

+=

=

=

C-C

sa$ple!nitso+n!$%er

o%serveincientso+n!$%er


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3-35

Controlling Service G!ality

" Process control, strategy $aps, an control

charts can also %e !se +or

services" (eas!ring service

6 Service is a%stract, transient, an psychological

" Can cope !sing c!sto$er satis+action s!rveys

" 8raining e$ployees in stanar proce!res can

i$prove


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Service @e+ections

" 7ee%ac5 +ro$ e+ecting c!sto$ers can

%e !se to ienti+y pro%le$ areas

" Can eter$ine what is neee to winthe$ %ac5

" Changes in e+ection rate can %e !se as

early warning signal

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Meredith - Chapter 3

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