This document discusses two case studies: (1) best practices in process improvement which recommends identifying problems, choosing a cross-functional team, process mapping to identify gaps, setting goals and communicating progress; and (2) the role of statistical thinking in management which involves understanding variation, using data to guide actions, and learning workshops to evaluate processes. Statistical thinking benefits managers by viewing work as interconnected processes, understanding that variation exists, and reducing variation leads to success.

1. Process
Improvement &
Statistical Thinking
Carey Turner and Felix Llanos
October 31, 2012

2. What we will cover…
(1) Case Study: Best Practices In Process Improvement
(2) Case Study: The Role of Statistical Thinking in
Management
(3) Questions

3. Case: Best Practices in Process
Improvement
Process Improvement is “used to evaluate business processes
ranging from employee satisfaction to customer desk support”

4. Surveyed Participant’s Problems

5. Recommendations
(1) Identify the cause of the problem, and why there is a need for change
• Impacts Customer Satisfaction
• Employee Involvement
• Financial Return
• Potential Risks
(2) Choosing your team.
• Cross-functional
• Unbiased opinions are important, so employees from unrelated departments
are essential
(3) Answer the question “What is broken?” and “Why Should it be
Improved?”
• Process Mapping: tool used to visually display the overall process and
identifies gaps in the process
• Set aggressive goals instead of incremental improvements
• Move Fast: “Don’t let the project drift…It is better to reschedule or cancel the
project than to let it coast”

6. Recommendations (cont.)
(4) Communicate, Communicate, Communicate
Develop a communication plan that articulates the vision and status of the
project, whether it be through regular meetings or a software, employees
need to be informed about the progress and benefits from the project.
(5) Empower based on Action
“Management will be more receptive to accepting change if you
demonstrate a financial benefit for the company”
(6) Celebrate Milestones
By celebrating and recognizing team achievements, it will build
enthusiasm
(7) Build for the Future…
It is important to ensure sufficient controls are in place to prevent the
backslide of problems.

7. Case: The Role of Statistical
Thinking in Management
Statistical techniques such as statistical process control and
experimental design has played an important role in the U.S business
and industry.
Unfortunately, the effective integration of statistics into management
science has been hampered due to plenty of issues.
Four Issues:
• Understanding
• Developing
• Taking measures
• Assessing

8. What Managers Should Know
about Statistics
• The word “statistics” invokes fear in many people
• Interconnected processes that are variables and reduction of
variation provides improvement opportunities
• Short term: it can improve quality of decisions
• Long term: it can help turn managers into leaders

9. Key Components of Statistical
Thinking
Statistical Thinking: a philosophy of learning and action based on viewing all work
as a system of interconnected process, understanding that variation exists in all
processes, and recognizing that understanding and reducing variation are keys to
success
Key Components:
• Process Thinking
• Understanding Variation
• Using Data whenever possible to guide actions
Key Aspects of Process Thinking:
• All work is a series of interconnected processes
• The Majority of the problems are in the process
• Managers must focus on fixing processes, not blaming people
Key Aspects of Understanding Variation
• Reducing the number of suppliers reduces variation in the quality of incoming
materials
• Over-controlling processes increases variation

10. Learning Methods
Learning Methods are important when using data whenever
possible to guide actions
• Learning Workshops
Each manager should report on five ket items at these
workshops
• Uses of Statistical Thinking
• What worked?
• What should be done differently?
• Key lessons from the experience
• Concerns and questions
Will help them plan future “learn-use-evaluate” cycle

11. Levels of Activity
Three fundamental levels
of activity:
• Strategic Level
• Managerial Level
• Operational Level

12. Statistical Thinking Reaps
Many Benefits
Overall, managers will benefit greatly by understanding
statistical thinking and the principles that are necessary to
capitalize on it advantages.
Statistical Thinking creates mind-sets such as:
• Providing leadership
• Delighting customers
• Promoting team-work
• Working towards continuous improvement
• Creating innovative channels of communication

13. Questions?

14. References
• Dolan, T. (2003). Process improvement: Best practices in
process improvement. Retrieved from www.asq.org
• Hare, L., Hoerl, R., Hromi, J., & Snee, R. (1995). The role of
statistical thinking in management. Retrieved from
www.asqc.org
• Evans , J. R., & Lindsay, W. M. (2011). Managing for quality and
performance excellence. (8th ed.). Thomas South-Western.
• Harvard Business Review. (2010). Improving business
processes. (p. 12). Harvard Business School Publishing