The Internet of Things
The “internet of things” is the latest buzzword that can be heard in Silicon Valley. It is the newest avenue for innovation and bright minds all over the world are moving towards this rapidly advancing sector. Almost, every business report predicts a massive rise in the value of goods and service that will be enabled […]
Finished Goods Inventory Classifications and Terminologies
While inventory classification of raw materials for Inventory Management purposes follows ABC Classification, Finished Goods inventory is classified under additional categories based on various attributes including sales volumes/patterns, functional attributes and operational requirements. Stock Category depending upon Sales Channels Finished Goods at the very basic level is manufactured and stocked separately depending upon the Business […]
Information System in Retail Sector
Introduction An important element of the supply chain is the retail. Retail is the place where the products and goods are sold to the end users. Retailer purchases goods and products from producers in large quantities and in turn sells them to consumers in smaller quantities. Information Flow It is very important for the retailer […]
Why Project Managers Should Not Overpromise and Underestimate at the Same Time
The Perils of Overpromising It is often said that project management is both an art and a science. It is a science because project managers have to estimate time and cost that it takes to actualize the deliverables. It is an art, as they have to manage resources, people, and other stakeholders. In this context, […]
Disaster Recovery, Crisis Management Plans and Ownership
When and if a disaster strikes any business operation or organization, what helps the Organization to deal with the crisis effectively, continue to run the business operations to the extent possible and get back on the recovery path are the Disaster Recovery and Business Continuity plans. However the effectiveness of the plans depends largely upon […]
Shift in the Process: A shift in the process is defined as a pattern in which seven consecutive data points appear on only one side of the mean. Statistical studies have shown that if the number of points on one side of the mean is less than 7 then it is not a non-random pattern and could have occurred due to random causes.
A shift in the process is very important for the management to detect. This is because it signifies that the average of the process has moved to a different level. Therefore, the control chart with the mean and control specifications based on old measures is redundant and will give wrong information. It is for this reason that it is important for the organization to detect this pattern as early as possible and take corresponding measures. The most common causes of the appearance of non- random shift patterns is as follows:
Process Improvement: Shifts in process means usually happen as a result of a deliberate attempt through a process improvement initiative. The best practises to do any task are continuously evolving. Introduction of new technologies enables newer and better ways of performing the work. This pattern can be detected on the control charts and the process improvement can be institutionalised.
Introduction of New Inputs: Another common reason for shift in the process mean is the introduction of new inputs. These new inputs could be markedly better or worse than the inputs used earlier and as a result change the performance of the entire process
Change in Quality Control Measures: The shift could also be the result of a change in quality control measures. The thrust may have changed from cure to prevention and as a result the quality checks may have dramatically improved the process, shifting its mean.
As the name suggests, this may be quite straightforward. However the logic behind this pattern is interesting. The normal curve states that 95% of all data points will lie between 2 standard deviations. However, if 2 out of 3 consecutive points are lying on or above the standard deviation, we can be rest assured that the 95% criteria is not being met, at least in that point in time.
This is therefore an early sign to the management that the process may be about to go out of control. A thoughtful management will make corrective action plans that will look into the process, understand the issue and correct it as soon as possible.
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Step 3B: Choosing the Correct Control Chart (Continuous Data)
February 12, 2025
