Make control charts work with these detailed explanations and instructions.
The control chart serves to “sound the alarm” when a process shifts (for instance, a machine suddenly breaking on a factory floor) or if someone has a breakthrough that needs to be documented and standardized across the larger organization. Simply put (without taking anomalies into consideration), you'll know something needs to be fixed if you're below your lower control limit or above your upper control limit. See the control chart example below:
In industrial settings, control charts are designed for speed: The faster the control charts respond following a process shift, the faster the engineers can identify the broken machine and return the system back to producing high-quality products. At a factory, a lag in testing could mean that thousands of parts are produced incorrectly before anyone notices the machine is broken, which results in wasted time and materials, as well as angry customers.
In nonprofit organizations, a control chart could be used to determine when an online donation system has broken down. If the website goes offline, halting critical donations, the leadership team can quickly alert IT and ensure the page gets back up and running quickly. Alternatively, seeing a major jump in donations likely means something good is happening—be it world events or a successful marketing campaign. Either way, leadership should know as soon as possible when donation activity changes.
Because of Excel’s computing power, you can create an Excel control chart—but in order to do so, you need to know how the upper and lower limits are calculated. There are different statistical analysis tools you can use, which you can read more about here.
Control charts can be used as part of the Balanced Scorecard approach to account for an acceptable range or variation of performance. If you choose to do this, there are five key quality control rules to keep in mind when considering using control charts at your organization:
The key with control charts is to recognize when anything is happening outside the norm. Be it good or bad, you will want to develop an action plan for how to respond when the latest measure lands outside the acceptable limits.
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