ABSTRACT
Monitoring performance of a business process enables a manager to determine if objectives are being met or when changes have occurred that need attention. Effective analysis of performance data can identify problems and assist in finding their root causes. It can eliminate the reaction to performance data that vary due to normal variation when the business process is unchanged. Business process managers should know that outcomes will change even when the process is unchanged. This mantra is key to effectively evaluating performance data to set the stage for appropriate action (or inaction). Stable processes are unchanged – if they generate acceptable results they should be left alone. Control charts are effective at determining if a business process is operating in a stable fashion. Unstable processes should be identified quickly and the root cause addressed. A stable process will generate predictable results that should be evaluated using a statistical confidence interval to determine if output meets suitable benchmark values (while considering the effect of random variation). Stable processes that are unacceptable require improvement projects because their issues are systematic. Unstable processes need to be made stable before they can be compared with a target or benchmark.
