“To increase process performance, know-how your processes are performing by visibly measuring it.”
The following statement is not new to any of us “What gets measured gets done.” And this is true for your business KPIs as for your process’ performance too.
Businesses often measure their health with Key Performance Indicators (KPIs) that revolve around sales volume, profit, cash flow, etc. All valid measures, however, the performance of the business processes, that ultimately drive these top KPIs, are given less attention.
Know How to Increase Process Performance By Using Correct Measurement Approach
Whether the aim is to improve the performance of product or service quality or to increase profits, it is key to know how the business processes are performing at all times.
Typically processes should be measured more frequently than company KPIs are, and should ideally be done as close to real-time as possible. The outcome or output of the process is measured. That is, the final service or product produced.
Typically, two process measurement categories are employed. These are the (1) quality of the outcome and (2) the efficiency with which it has been produced.
Know Your Process Performance with Control Charts
Statistical Process Control charts have been in use for centuries as the standard measurement tool. When one adopts a more friendly name, such as “Control Charts”, the tool becomes more accessible to most, the intimidation factor falls away.
As process history is developed, the stability of the process can be monitored and deviations quickly noticed and corrective action taken.
Tips and Hints for Measuring Process Performance
To know your processes start with measuring the appropriate performance, whether a quality attribute, a process variable, or other aspects of a process.
It goes without saying that the characteristic performance measured needs to be appropriate, accurate, and reliable. If not, all that is then achieved is the Katherina of useless information on which poor decision-making is the result.
When considering measures or metrics they should,
- be relative, as opposed to absolute numbers, by nature. That is expressed as a percentage of
- be clear, simple and measurable
- have an operational definition on how to measure it
- measure the process outcome performance
- tracked at the proper frequency (hourly, daily, weekly, monthly etc)
- be expressed graphically, for all to see as a run chart, time series or control chart
- the correctness of the measurment data should be validated