Evaluating the processes performance is the key to success

Evaluating the processes performance is the key to success

October 7, 2014 3:56 pm 0 comments

In the past, we have focused on achieving results from your process improvement efforts. One of our key learnings from research and clients is that the development of a Process Management Process is a critical step in putting in place a process improvement mindset in an organisation. This management process shows the steps you will follow as you evaluate and improve your core processes.

The last step is always to evaluate process performance. To do that, you need to monitor and measure the performance of the process on a continuing basis.

How do you put in place what is needed to accomplish this?

During the improvement project, develop the process measures that will be used to monitor the process.
As the Process Team implements the process improvements, they will identify how the performance of the process will be measured and evaluated against customer expectations, usually following a combination of these three key criteria:

1. Time: what time steps in the process should take to complete (cycle time), such as:
• material should be delivered within 30 minutes of order;
• response time to customer request of one hour;
• an aircraft should be turned around in 30 minutes.

2. Quality: the measure of how good the process needs to be, for example:
• Order fulfilment: percentage of orders filled on-time;
• Schedule to Produce: percentage of orders produced accurately;

3. Cost: what resources the process should consume.

Measure current performance and assign the target the improved process is to achieve.

Collect results for each measure so that you know the current performance level.

The process team will work with the process owner to set targets for each measure. Some high level targets were established when the team was improving the process, so the team knows what level of performance the new process needs to achieve. With the new process now implemented and additional measures in place, new targets need to be established.

Monitor the process to close the gap between actual and targeted performance.

As the Process Team and Process Owner monitor the actual performance of the process, they will make changes in the process to achieve the targets that were established. Without this ongoing monitoring, there is no way to know how the process is actually performing. It is difficult for the process to achieve targeted performance levels without this ongoing feedback,.

Measuring and monitoring process performance provides real time feedback on how the process is performing. Since the end result of process performance is providing a product or service to a customer, this management step allows you to manage how you provide the product or service to your customer. A well-managed process provides the level of performance you are trying to achieve. A process not managed will provide inconsistent results, which you can expect your customer to notice and then respond to accordingly.

Got five minutes! Try our free quick assessments on Process Improvement or Process Based Management . Or if you like what you’ve read, why not sign up to our regular blog to find out more ways Ascent Management can help add value to your business.

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