Process Entitlement is the best possible performance that a process can attain given its current design and structure, without any major adjustment. It shows the maximum that a process can actually deliver with its current capabilities.
Calculation Methods For Process Entitlement
1. Historical Best Performance
We can refer the historical data and select the best performance the process has delivered by calculating the mean or median of the periodic parameter.
2. Engineering And Scientific Methods :
We can use theoretical engineering and scientific principles to arrive at a theoretical best performance . As this is an ideal circumstance we are considering , considering variations that may actually happen is crucial before we arrive at the theoretical best performance.
3. Equipment Capacity
Refer the best performance specified by the manufacturer of the equipment or machine being used while considering the real world limitations like operator skill , maintenance and other factors that have been observed before.
4. Benchmarking
We may refer to similar processes in other organizations or industries to arrive at the Process Entitlement.
5. Statistical Analysis
We may use suitable statistical methods to arrive at the Process Entitlement.
How Does It Help In Process Improvement
1. Deciding Achievable Target
It helps us to set practical goals in six sigma green or black belt projects so that the chances of achieving the goal is very high.
2. Highlighting Areas Of Improvement
It highlights the gap between the current performance level of a process and the target performance level, resultantly highlighting the processes that need improvement the most urgently.
3. Deciding the importance of improvement initiatives
Process Entitlement helps us to decide which are the lowest hanging fruits , which improvements will impact the bigger picture the most.
4. Measuring Progress
As soon as we start implementing measures for process improvement, Process Entitlement helps us to keep an eye on the delta between the current and target performance levels. Hence, we can keep track of the progress being made.
5. Keeping Wasteful Investments At Bay
It helps us invest resources proportionate to a process' current performance level. This way we can currently strategize how much , using which methods and when a resource must be invested in a process to effectively achieve improvement in the bigger picture.