International Logistics – A brief introduction
Supply Chains ride on Logistics Networks and IT Applications/Internet. In this topic a brief introduction to each of the Logistics Function/Industry is attempted. The foundation of logistics function is based mainly on Transportation by Road, Rail, and Air & Sea. Maritime trade has existed since times immemorial. History is replete with the major maritime routes […]
Ecommerce and Internet Enabled Supply Chains
Internet Technology has impacted our day to day life beyond imagination. It has changed the way we make purchase decisions, the process by which we compare products and finally buy the product. All this has been enabled instantly by the click of a mouse, sitting in the comfortable environs of your home. Lets take the […]
Service Module – Setting Up and Configuration Control
It is of utmost importance for any business enterprise to maintain their existing customers. A proper after sales service through quick response prompt delivery is needed for enhancing customer satisfaction. Service need may encompass scheduled as well as unscheduled maintenance, warranty management, defect identification etc. Salient feature of a service related module: Proper and Systematic […]
How Central Bankers and Policymakers are Losing Control of the Global Economy
The US Fed and Tapering of Quantitative Easing (QE) The recent announcement that the United States Federal Reserve was thinking of tapering the Quantitative Easing program or QE immediately spooked the stock markets, which went into free fall. Mind you, this was not the actual tapering off the program but just a line of thought. […]
ERP Service Module – Call Handling and Service Orders Control
Call Handling Proper operation of a help desk is an essential component of proper servicing and resolution of problems. Service module of an ERP system assists organization to respond promptly both in respect of internal and external customers and gain valuable management data which helps in retaining customers as well as improve internal operation of […]
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
