1 lecture 6 process measurement business process improvement 2010
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LECTURE 6LECTURE 6
Process Measurement
Business Process Improvement2010
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Process Metrics
Measurement – the act of quantifying the performance dimensions of products, services, processes, and other business activities.
Measures and indicators - numerical information that results from measurement – Defects/unit– Errors/opportunity– dpmo
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Types of Metrics
Discrete metric – something that is countable
Continuous metric – something concerned with the degree of conformance to specifications
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Effective Metrics
SMART– simple, – measurable, – actionable (they provide a basis for
decision-making), – related (to customer requirements
and to each other), and – timely.
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Identifying and Selecting Process Metrics
Identify all customers and their requirements and expectations
Define work processes Define value-adding activities and
process outputs Develop measures for each key
process Evaluate measures for their
usefulness
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Dashboards and Scorecards
Dashboard – collection of key operational measures– Graphs, charts, visual aids– Daily information for management
and control Balanced Scorecard – summary of
broad performance measures across the organization– Strategic guidance
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Data Collection
Key Questions– What questions are we trying to
answer?– What type of data will we need to
answer the question?– Where can we find the data?– Who can provide the data?– How can we collect the data with
minimum effort and with minimum chance of error?
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PRASETIYA MULYA’s ADMINISTRATION TEAM
What types of defects/errors might occur?
How to measure them?
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Check Sheets
Check sheets are special types of data collection forms in which the results may be interpreted on the form directly without additional processing.
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Check Sheet
Creates easy-to-understand data Builds, with each observation, a
clearer picture of the facts Forces agreement on the definition
of each condition or event of interest
Makes patterns in the data become obvious quickly
xx xxxxxx x
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Sampling
What is the objective of the study?
What type of sample should be used?
What possible error might result from sampling?
What will the study cost?
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Sampling Methods
Simple random sampling Cluster sampling Judgment sampling
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Selecting a Sampling Plan
A good sampling plan should select a sample at the lowest cost that will provide the best possible representation of the population, consistent with the objectives of precision and reliability that have been determined for the study.
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Data Classification
Type of data–Cross-sectional —data that are collected over a single period of time
–Time series —data collected over time
Number of variables–Univariate —data consisting of a single variable
–Multivariate —data consisting of two or more (often related) variables
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Sample Statistics
Sample Size
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ProblemA utility requires service operators to answer telephone calls from customers in an average time of 0.1 minute or less and either respond to them or refer the customer to the proper department within 0.5 minute. The manager is interested in estimating the actual overall time for both components, in total. A pilot study sample of 30 actual operator times was drawn, and the results are given in the following table.
If the service manager wants to be 95 percent confident that the overall time is correctly estimated, with a 3 percent probability of error, what size sample should be taken?
Component Mean Time Standard Deviation
Answer 0.1023 0.0183Service 0.529 0.0902
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Metrology - Science of Measurement
Accuracy - closeness of agreement between an observed value and a standard
Precision - closeness of agreement between randomly selected individual measurements
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Repeatability & Reproducibility Studies
Quantify and evaluate the capability of a measurement system– Select m operators and n parts– Calibrate the measuring instrument– Randomly measure each part by
each operator for r trials– Compute key statistics to quantify
repeatability and reproducibility
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Process Capability
The range over which the natural variation of a process occurs as determined by the system of common causes
Measured by the proportion of output that can be produced within design specifications
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Process Capability Study
1. Choose a representative machine or process
2. Define the process conditions3. Select a representative operator4. Provide the right materials5. Specify the gauging or measurement
method6. Record the measurements7. Construct a histogram and compute
descriptive statistics: mean and standard deviation
8. Compare results with specified tolerances
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Process Capability Index
The process capability index, Cp (sometimes called the process potential index), is defined as the ratio of the specification width to the natural tolerance of the process. Cp relates the natural variation of the process with the design specifications in a single, quantitative measure.
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Calculating Process Capability Indexes
Cp = USL - LSL 6s
Cpl, Cpu }
USL - m 3s
Cpl = m - LSL 3s
Cpk = min{
Cpu =
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Nominal specification 5
Upper tolerance limit 6.75
Lower tolerance limit 3.25
PROBLEM
DATA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
1 4.92 4.65 5.77 6.25 5.27 5.22 5.47 5.71 5.24 4.42 5.14 4.92 5.79 4.92 5.68
2 4.26 5.54 5.26 4.88 5.41 5.38 4.68 4.54 5.58 5.18 4.26 5.78 3.83 4.80 5.74
3 4.94 5.00 4.76 5.66 6.02 5.08 4.56 4.17 4.72 4.79 4.71 5.50 4.30 4.75 4.65
4 4.29 5.42 4.79 4.44 4.91 4.65 4.70 4.87 5.41 4.73 5.48 5.05 4.78 5.59 5.20
5 5.43 4.79 5.03 4.30 6.07 5.11 4.50 4.91 4.65 4.70
6 4.81 6.04 4.66 5.47 4.97 4.90 5.24 4.79 4.71 5.50
7 5.27 4.47 5.25 4.27 5.51 5.91 4.86 5.74 4.81 6.04
8 4.96 5.18 4.46 4.34 5.02 4.66 4.35 5.03 5.32 4.30
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Spreadsheet Template