Mbpfc9 - ManagingBusinessProcessFlows: OperationsD30

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    Process Control and Capability (Chapter 9) Improvement Process Process Measurement and Analysis Process Variability and Control Process Capability Product and Process Design Operations D30 Managing Business Process Flows: Managing Flow Variability  Module
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    Process Control and Capability Managing Business Process Flows,  River, NJ: Prentice Hall Feedback control Collect information about critical performance  measures Take corrective actions based on observed  variability in real time Improve Plan-Do-Check-Act (PDCA)
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    Meaning of Variation ( Deming,  Out of the Crisis, 1986, p. 20) Central problem for managers is to Understand the meaning of variation  Extract the information contained in  variation
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    Meaning of Variation (Deming, Out of the Crisis, 1986, p. 20) Central problem of all management is to  understand the meaning of variation  extract the information contained in variation Variation is reduced by improving process improving the process includes better allocation of  human effort putting out fires is not process improvement discovery and removal of special causes is not  process improvement
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    Distributions Distributions have 3 basic properties: Location: typical value Spread: amount by which smaller values differ from larger  ones (i.e., range or standard deviation) Shape: Pattern (peakedness, symmetry etc.) Location Spread Shape
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    Central Limit Theorem Regardless of distribution, distribution of  sample means tends to be normal Mean of samples equals mean of population 95.5% 99.7%
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    Control Limits Typically processes with the mean within ±3 σ  of  the target value   IN CONTROL 99.7% Confidence Interval is: X ± 3 σ + 3 σ - 3 σ
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    Control Limits are NOT  Specification Limits Control limits ± 3  σ  of average LCL = X - 3  σ   Specification limits Target value ± tolerance  .5 in. ± .01 in. LSL = .49  USL = .51
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    PROCESS CAPABILITY  MEASURES Processes Exhibit variation measured by Process mean  Process standard deviation. Process width  Plus and minus three standard deviations about  the process mean. Specification width  Interval between the upper and lower limits of  acceptable performance for that product.
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    PROCESS CAPABILITY  MEASURES Process Width Mean +3 σ -3 σ Specification Width
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20 40 15 45 A S = 20 P = 45-15 = 30 Cp = 20/30 = .67 20 40 B S = 20 P = 40-20 = 20 Cp = 20/20 = 1.0 20 40 24 36 S = 20 P = 36-24 = 12 Cp = 20/12 = 1.67 C Process width exceeds specification width. Bad parts inevitable
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Mbpfc9 - ManagingBusinessProcessFlows: OperationsD30

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