{"id":6364,"date":"2024-09-26T09:10:21","date_gmt":"2024-09-26T07:10:21","guid":{"rendered":"https:\/\/getnave.com\/blog\/?p=6364"},"modified":"2025-11-11T12:56:20","modified_gmt":"2025-11-11T11:56:20","slug":"thresholds-that-drive-continuous-improvement","status":"publish","type":"post","link":"https:\/\/getnave.com\/blog\/thresholds-that-drive-continuous-improvement\/","title":{"rendered":"Natural Process Limits 101: How to Set Thresholds That Drive Continuous Improvement"},"content":{"rendered":"<div class=\"cf-14869-area-150045\"><\/div>\n<p>Hey there!<\/p>\n<p>If you caught my last post, <a href=\"https:\/\/getnave.com\/blog\/cycle-time-spikes\/\" target=\"_blank\" rel=\"noopener\">\u201cCycle Time Spikes? Here\u2019s Why You Shouldn\u2019t Panic Just Yet\u201d<\/a>, we talked about how not every fluctuation in your flow metrics is a crisis. We covered how natural variation is part of the process and how constantly reacting to every spike or dip can actually do more harm than good.<\/p>\n<p>Now, I know what you\u2019re thinking\u2014how do you tell the difference between normal variation and a real issue that actually needs your attention?<\/p>\n<p>Great question, and that\u2019s exactly what we\u2019re diving into today!<\/p>\n<p>So, let\u2019s pick up where we left off. You\u2019ve got your flow metrics in front of you. Your cycle time is fluctuating and you\u2019re left wondering: <strong>\u201cIs this normal? Or do we need to address it and take action?\u201d<\/strong><\/p>\n<p>That\u2019s where setting boundaries around your data comes in. These boundaries help you figure out what\u2019s just part of the usual ebb and flow, and what\u2019s signaling something\u2019s off and requires your attention.<\/p>\n<p>Variation happens in every process but when you see a spike or a dip that\u2019s outside of what you expect, that\u2019s when you should start investigating.<\/p>\n<h2>How to Draw Boundaries Around Your Data<\/h2>\n<p>Here\u2019s the key to staying on top of your flow metrics: setting what\u2019s called <strong>natural process limits<\/strong>. These limits will help you separate normal variation from exceptional changes in your process.<\/p>\n<p>Here\u2019s a step-by-step guide on how to calculate your natural process limits for cycle time:<\/p>\n<p>1. <strong>Gather Your Data:<\/strong> Start by taking a set of the most recent completed items and listing them in a column in Excel.<\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6362\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image.png\" alt=\"Gather Your Data by Nave | Image \" width=\"1999\" height=\"812\" srcset=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image.png 1999w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image-768x312.png 768w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image-1536x624.png 1536w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/gather-your-data-by-nave-image-585x238.png 585w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/a><\/p>\n<p>2. <strong>Calculate Your Average Cycle Time: <\/strong>In the next column, calculate the average of all the cycle times.<\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6360\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image.png\" alt=\"Calculate Your Average Cycle Time by Nave | Image\" width=\"1999\" height=\"744\" srcset=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image.png 1999w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image-768x286.png 768w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image-1536x572.png 1536w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-your-average-cycle-time-by-nave-image-585x218.png 585w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/a><\/p>\n<p>3. <strong>Calculate the Moving Range:<\/strong> In the next column, calculate the difference between each pair of consecutive data points. This shows how much variation there is from one completed item to the next.<\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6359\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image.png\" alt=\"Calculate the Moving Range by Nave | Image\" width=\"1999\" height=\"741\" srcset=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image.png 1999w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image-768x285.png 768w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image-1536x569.png 1536w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/calculate-the-moving-range-by-nave-image-585x217.png 585w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/a><\/p>\n<p>4. <strong>Find the Average Moving Range:<\/strong> Once you have the moving ranges, find their average. This gives you a sense of your process\u2019s natural variation.<\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6361\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image.png\" alt=\"Find the Average Moving Range by Nave | Image\" width=\"1999\" height=\"764\" srcset=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image.png 1999w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image-768x294.png 768w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image-1536x587.png 1536w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/find-the-average-moving-range-by-nave-image-585x224.png 585w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/a><\/p>\n<p>5. <strong>Set Your Limits:<\/strong> Finally, multiply the average moving range by 2.66, then add that to the overall average to get your <strong>Upper Limit <\/strong>and subtract it to find your <strong>Lower Limit<\/strong><\/p>\n<p style=\"text-align: center;\"><span style=\"text-align: center;\">Natural Process Limits = Average \u00b1 2.66 \u00d7 Average Moving Range<\/span><\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image.png\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-6358\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image.png\" alt=\"Set Your Limits by Nave | Image\" width=\"1999\" height=\"780\" srcset=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image.png 1999w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image-768x300.png 768w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image-1536x599.png 1536w, https:\/\/getnave.com\/blog\/wp-content\/uploads\/set-your-limits-by-nave-image-585x228.png 585w\" sizes=\"auto, (max-width: 1999px) 100vw, 1999px\" \/><\/a><\/p>\n<p><em>If you\u2019d like a copy of this spreadsheet, <a href=\"https:\/\/www.linkedin.com\/in\/siderova\/\" target=\"_blank\" rel=\"noopener\">reach out to me on LinkedIn<\/a> and I\u2019ll share it with you!<\/em><\/p>\n<div class=\"cf-14869-area-150047\"><\/div>\n<h2>So, When Should You Take Action?<\/h2>\n<p>Now that your limits are in place, it\u2019s time to put them to good use. If your data points stay within those limits, this means that your process is stable, and there\u2019s no need to make any sudden changes.<\/p>\n<p>But if something falls outside those boundaries, like item 16 above, it\u2019s your cue to dig deeper and see where the opportunity for improvement is.<\/p>\n<p>It\u2019s as simple as that!<\/p>\n<p>And if you\u2019d like to see this in action with your own data, go ahead and check Nave\u2019s Process Improvement dashboard. <a href=\"https:\/\/getnave.com\/kanban-dashboards?utm_source=blog&amp;utm_medium=post&amp;utm_campaign=avoid-delivery-delays-strategies-product-engineering-teams\" target=\"_blank\" rel=\"noopener\">It\u2019s free for 14 days, no strings attached<\/a> \u2192<\/p>\n<p><a href=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/16_9-screen-mockup.svg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-7381\" src=\"https:\/\/getnave.com\/blog\/wp-content\/uploads\/16_9-screen-mockup.svg\" alt=\"\" width=\"1206\" height=\"687\" \/><\/a><\/p>\n<p><em>Agile teams across the globe use the Nave Analytics suite to identify opportunities for improvement and deliver better products faster!<\/em><\/p>\n<p><strong>In the next article,<\/strong> \u201c<a href=\"https:\/\/getnave.com\/blog\/set-accurate-process-limits\" target=\"_blank\" rel=\"noopener\">How Much Data Do You Really Need to Set Accurate Process Limits?<\/a>\u201d, we\u2019ll go even deeper into how much data you actually need to calculate these limits and take full control of your process.<\/p>\n<p>Until then, keep calm, and let the data be your guide!<\/p>\n<p>Thanks for tuning in, and I\u2019ll see you next Thursday, same time and place for more managerial insights!<\/p>\n<p>Bye for now!<\/p>\n<div class=\"cf-14869-area-125960\"><\/div>\n<div class=\"cf-14869-area-150046\"><\/div>\n<p><em><strong>Source:<\/strong> <a href=\"https:\/\/leanpub.com\/actionableagilemetricsii\" target=\"_blank\" rel=\"noopener\">Vacanti, D. &#8220;Actionable Agile Metrics for Predictability Volume II&#8221;<\/a><\/em><\/p>\n<div class=\"brz-root__container\"><\/div>\n<div style='text-align:left' class='yasr-auto-insert-visitor'><\/div>","protected":false},"excerpt":{"rendered":"<p>Hey there! If you caught my last post, \u201cCycle Time Spikes? Here\u2019s Why You Shouldn\u2019t Panic Just Yet\u201d, we talked about how not every fluctuation in your flow metrics is a crisis. We covered how natural variation is part of the process and how constantly reacting to every spike or dip can actually do more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6363,"comment_status":"open","ping_status":"open","sticky":false,"template":"brizy-blank-template.php","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[69],"tags":[],"class_list":["post-6364","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-process-improvement"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Set Thresholds That Drive Continuous Improvement | Nave<\/title>\n<meta name=\"description\" content=\"How do you tell the difference between normal variation and a real issue that actually needs your attention? 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