How to Create a Control Chart (Process Behavior Chart)

Learn how to create a Control Chart (also known as a Process Behavior Chart) with Graban, Senior Advisor at KaiNexus and author of "Measures of Success." This video provides an updated, in-depth guide originally presented as bonus content for a KaiNexus webinar.

Are you struggling to distinguish real improvement from mere random fluctuation (noise) in your metrics? This powerful statistical method, based on simple arithmetic, helps you turn opinions about improvement into mathematically valid conclusions. Understand your process variation and learn to react less and lead better.

In this video, you will learn:
• Why measuring matters beyond just meeting goals, focusing on sustained improvement.
• The essential steps to create your own Process Behavior Chart, including gathering initial data (20 data points are good for a baseline, though you can start with fewer and recalculate).
• How to calculate the mean (average) and moving range to understand inherent routine variation within your baseline data.
• The methodology for calculating Natural Process Limits (Upper and Lower Control Limits) to define predictable system behavior.
• The three critical rules for identifying signals in your data, indicating a significant shift or change in your system:
1. A single data point above or below the limits.
2. A run of eight or more consecutive data points above or below the average.
3. Three out of four consecutive data points closer to the same limit than to the average.
• How to differentiate between signals (real change) and noise (routine variation) to prioritize your improvement efforts effectively.
• What to do when a signal appears: investigate the root cause and potentially shift limits if a new stable process level is established.

This methodology is crucial for managing metrics efficiently and effectively, helping organizations prioritize responses and drive true continuous improvement. Mark Graban uses real-world examples, including his own blog traffic data, to illustrate the concepts.

The companion to a webinar presented in January 2017:
youtube.com/watch?v=y6-QgYNs3QI

Presented by Mark Graban of KaiNexus