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@MarkGraban
Mark@MarkGraban.com
www.MeasuresOfSuccessBook.com
Measures of Success
React Less, Lead Better, Improve More
(A Webinar)
Slides & More: www.MarkGraban.com/IEX
“There is not a day
I don’t think about what
Dr. Deming meant to us.
Deming is the core of
our management.”
– Shoichiro Toyoda
What problem are we trying to solve?
8
Daily Lean Management & Strategy Deployment
What gets
measured,
gets managed
How do we manage
the metric?
(or manage the system?)
75
80
85
90
95
100
Weekly New Premium User Registrations
GOAL
GOOD
(Do nothing)
BAD
(Do something!)
Three Core Questions
1. Are we achieving our goal?
2. How is our performance trending?
3. How do we improve?
We don't have
enough time to
improve!
Stop wasting time
explaining noise
"While every data set
contains noise,
some data sets may
contain signals."
"Before you can
detect a signal
within any given data
set, you must first
filter out the noise."
Process
Behavior
Charts
Predictable System
Routine Variation
"Noise"
Three Rules for Detecting a Signal
• Rule 1: Any single data point
outside of the limits.
• Rule 2: Eight consecutive
points on the same side of
the average.
• Rule 3: 3 out of 3 (or 3 out of
4) points closer to the same
limit than the average.
• Also apply Rule 1 to the MR
chart, if that's being used
Three Rules for Detecting a Signal
• Rule 1: Any single data point
outside of the limits.
• Rule 2: Eight consecutive
points on the same side of
the average.
• Rule 3: 3 out of 3 (or 3 out of
4) points closer to the same
limit than the average.
• Also apply Rule 1 to the MR
chart, if that's being used
RULE 3
Wheeler Says
"SPC is a way of
thinking, with some
tools attached."
25
This Should be Part of Lean
"… consistently plot the measures on
simple visual trend charts…"
Goal = 36
Don't miss
signals
"…the
results are
OK because
it's below
our goal."
A Run Chart Helps
Process Behavior Chart
What
Happened?
There IS a time
to react
Standardize the New System
Keep it
Happening
Show a Shift in Performance
Predict Future, Better Performance
Don't use the
wrong signals
What Does "Red" Tell Us?
37
Process Behavior Chart View
38
What Does "Yellow" Tell Us?
Goal
39
Process Behavior Chart View
Goal
40
Stabilize and
Improve the System
Unpredictable Performance
STABILIZE THE SYSTEM!
ROOT CAUSE?
How to Ensure You Never Hit Goals
IMPROVE THE SYSTEM!
How to Create A Lot of Wasted Motion
IMPROVE THE SYSTEM!
DON'T OVERREACT!
How to Ensure You Always Hit Goals
IMPROVE THE SYSTEM?
React Less
Lead Better
Improve More
9/10 to 9/13
Knoxville, TN
Thank You!
• Slides & More:
http://www.markgraban.com/IEX
• Email: mark@MarkGraban.com
• Website: www.MarkGraban.com
• Blog: www.LeanBlog.org
• Twitter: @MarkGraban
• Book: www.MeasuresofSuccessBook.com

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Measures of Success - Webinar