This article will provide you with an introduction to Qualitin's ICG methodology.More >
This article will explain how the monthly KPI Meetings should work and how they provide the foundation to the Management Methodology.More >
This article will show you how to set the ranges for a Process KPI.More >
This article will outline the difference between Process KPIs and Period KPs on Qualitin's ICG Management SystemMore >
This article will introduce you to the Process Range.
As we all know, managing data can be a rather difficult exercise.
We all tend to gather lots of it to measure and manage, and then try to make sense of it all. However doing this means it can be diffult to know:
- What results to focus on
- What to compare it to
- What is considered to be good, bad and normal
Furthermore there is a common misconception that consistenstly not hitting a target means the process is underperforming.
Doesn't the below graph look all too familiar?
Looking for the signals
The signals are where your data is telling you to focus and where to act.
Identifying these signals is important so you can take the right action on the right results.
It is imperative to understand that variation in data will naturally occur. Every result will fluctuate to some extent.
The natural fluctuations though are just ‘noise’; preventing you from focusing on the reaults that really need your attention.
If you are constantly achieving similar results, it means these results are 'normal'.
To support this and look for the real ‘signals’ we use the process range.
We can now see the result that we should be focusing on.
Whether it is better than expected or worse than expected, the same principle applies -
It is an opportunity to learn
The Process Range is what your process is capable of delivering, or what you expect it to deliver. It is where we currently are, NOT the target (Client Range)
To set the process range you need to set the Upper and Lower Process Range, as shown below.
Anything within the Process Range is considered to be a normal result and will be represented by a green bubble on the dashboard.
As we are filtering out the ‘noise’ you would not need to analyse this result or even present it in your monthly KPI Meeting.
After all, it performed as expected.
For Month 5, the result is outside of the Process Range; turning the bubble yellow.
This indicates an abnormal result because it is not what we normally expect.
We have to understand what happened because we want the process to be stable after all.
We take action by creating an FCA. (Fact Cause Action)