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Old Way to View an Organization Customers are implicit. The organization will succeed if everyone does his or her job as directed. Quality is an event resulting from individual (or team) effort. The traditional view of the of the organization focuses on pleasing the managers and controlling the workforce:

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Deming’s Systems View The systems view of the organization focuses on pleasing the customers and improving the systems, processes and methods by which we create and deliver goods and services to the customer.

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Management is implicit. Quality is the net result of the interaction of the system. The steps of the system are interdependent. For the output to be improved the system must be improved. Deming’s Systems View

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A System of Activities to Focus the Library on Continuous Improvement

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Process Behavior Charts

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Studying Processes Run Chart

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A Run Chart visually represents data over time or in sequence. Why is it used? Shows variation in a process Shows the average of the data When should I use it? To see trends and shifts in the data To present data as input for a Process Behavior Chart To monitor progress after making changes in a process

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Studying Processes Process Behavior Chart A Process Behavior Chart is a graphic tool used to study variation in a process over time. Helps leaders determine whether and when to take action Assists library board members, administrators, and staff in learning about and measuring variation in library processes Identifies and distinguishes common and special causes of variation in a process Allows organizations to make predictions about what will occur in the future Provides a visual picture that helps employees improve processes by eliminating special causes of variation, reducing common causes of variation, and raising or lowering the average outcome to better meet customer needs

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Studying Processes Process Behavior Chart 1.Begin by filling out the initial data at the top of the X and Moving Range Chart page for your process similar to the example. 2.Write down the data points (X’s) for the most recent 20 – 25 measurements. If you have fewer points, use what you have. 3.Choose an appropriate scale and plot and connect the points on the X/Sample graph. Remember to leave space for the upper and lower natural process limits.

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Studying Processes Process Behavior Chart 4.Calculate the moving ranges (MR’s). Find the difference in value between the first and second X and pencil it into the Moving Range (MR) row. Do the same for points 2 and 3, 3 and 4, etc. Note that it is the absolute difference between the numbers that is important. Therefore don’t worry if you get a negative number. Write it down as a positive number. Choose an appropriate scale and plot the points on the Range chart at the bottom of the page. 5.Calculate the average MR (MR bar). Add up all the MR values and divide the total by the number of MR’s to get MBbar. Place the MRbar value in the blank at the top of the page, and draw a dashed horizontal line at that value on the Range chart

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Studying Processes Process Behavior Chart 6.Calculate the Upper Control Limit for the Moving Ranges (UCL MR ) by substituting into the following formula: UCL MR = MRbar x 3.267 Write this value in the blank at the top of the page. 7. Check for special causes in X’s. Are any MR’s greater than the UCL MR ? If yes, delete the X that is out of whack and calculate a new MRbar and a new UCL MR. If no, continue to calculate the standard deviation (S). 8. Calculate the standard deviation, S, as follows. S = MRbar final divided by 1.128 Write the value of S in the blank at top of page.

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Studying Processes Process Behavior Chart 9.Calculate the average of the X’s (Xbar). Find the sum of all the X’s and divide that total by the number of X’s. Write this value in the blank at the top of the page, and draw a horizontal line on the X/SAMPLE chart at the value of Xbar. 10.Calculate the Upper Control Limit for the X’s (UCL X ): UCL X = Xbar + 3S Draw a dashed horizontal line on the X/SAMPLE chart at the value of the UCL X 11.Calculate the Lower Control Limit for the X’s (LCL X ): LCL X = Xbar – 3S Draw a dashed horizontal line on the X/SAMPLE chart at the value of the LCL X

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Studying Processes Process Behavior Chart 12.Analyze what your process is telling you. Is the process in-control or out-of-control? Is there a great deal of variation? Is the average higher or lower than your customers expect? Is your process getting better, getting worse, or staying about the same? Does your process go through cycles?

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© 2008 Prentice-Hall, Inc. Chapter 17 To accompany Quantitative Analysis for Management, Tenth Edition, by Render, Stair, and Hanna Power Point slides.

© 2008 Prentice-Hall, Inc. Chapter 17 To accompany Quantitative Analysis for Management, Tenth Edition, by Render, Stair, and Hanna Power Point slides.

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