Control charts incorporate statistical control limits that show the amount of variation in process performance due to common cause variation, meaning it is inherent in the process itself. If any points lie outside those control limits, the proper conclusion is that special cause is present. Other special cause tests provide information about the existence of trends or process shifts.
Without control charts, business leaders often misinterpret data, leading to actions that either do not address the underlying problem or, even worse, exacerbate the problem. For instance, it is tempting to assume that if a metric increased from one month to the next, something specific must have changed resulting in different process performance. However, random variation exists in any process, and it is possible that nothing at all changed, and that the following month the metric will decrease again.
This type of mistake is particularly problematic when managers are conducting employee performance evaluations or running an incentive program. For instance, if one customer service representative has an increased average call handle time, it may in fact be due to a slip in efficiency, but it could also be because of variation in the types of calls all representatives handle.
Because control charts provide information about the variation inherent in a process, they give leaders a good idea of the range of performance they can expect from a process in the future. By comparing this range to the customer specification or business requirements, they can determine whether the process is capable of achieving the target level of performance or whether process improvements are needed. Learn more about control charts in Introduction to Control Charts and Types of Control Charts.