Hi,
I have recorded couple of internal metric which I want to drive internally for the process I am working for. Can some one help me in letting me know how to set up a target (which is statistically valid) for any of the metric. Data is continous here. I know there is something known as Expected Percentage of Occurrence method but not sure how to go about it.
Please help.
Regards
First of all try to stay away from targets which are numberised. Unless you set a target that has been determined using statically valid tools, the chances are that any number you choose is just plucked out of thin air.
Try to use targets which reflect attempts to improve the capability process to deliver improvements. E.g. more good product next period than the corresponding period last year, measures that gauge the effectivness of improvements made, the effects on production of staff training.
If you need to use numbers, choose numbers that measure improvements made, e,g, the number of better outcomes as a result of changes in the process, the number of opportunities for improvement that been implemented, that kind of thing.
If you just go for 10% more this time than last time then what improvements to capabability are you going to make that will deliver 10%. If you expect to get 10% more this time than last time without improving capability then why did'nt you get 10% more last time? If you plucked 10% out of thin air then why not make it 20% or 50% for that matter? 10% more may be no more realistic than 50%. Until you measure capability of the process to deliver, you will never know what is realistic and or achievable.
