Work Study

Performance evaluation using statistical quality control techniques

Farhat Ali Burney Ibrahim Al-Darrab
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Performance
evaluation using
statistical quality
control techniques
Farhat Ali Burney
Ibrahim Al-Darrab
The authors
Downloaded by FREIE UNIVERSITAT BERLIN At 12:12 09 May 2015 (PT)
Farhat Ali Burney is an Associate Professor, Industrial
Engineering Department, King Abdul Aziz University,
Jeddah, Saudi Arabia.
Ibrahim Al-Darrab is an Assistant Professor, Industrial
Engineering Department, King Abdul Aziz University,
Jeddah, Saudi Arabia.
Abstract
Total quality management is now an established and
widely used management process. One of its associated
features is the application of statistical quality control
techniques. These have been applied to both manufactur-
ing and service industries. This paper presents an applica-
tion of this methodology to the area of human perfor-
mance evaluation in a service industry. It describes the
data, method of their collection, their analysis, and a
subjective evaluation criterion developed to evaluate the
performance.
Work Study
Volume 47 · Number 6 · 1998 · pp. 204–212
© MCB University Press · ISSN 0043-8022
204
Introduction
Total quality management (TQM) has
become more or less a household word (Rao
et al., 1996). It incorporates the concepts of
quality as presented by Garvin (1988). Its
philosophies have been advocated, slightly
differently but with the same focus, by gurus
such as Crosby (1980), Deming (1982),
Ishikawa (1985) and Juran (1986). One of its
essential features is the application of statisti-
cal quality control (SQC) techniques as first
propounded by Shewhart (1931). Application
is equally valid for both manufacturing and
service industries. In fact applications within
service industries are perhaps more common
(Rossander, 1989). There have been applica-
tions in educational institutions (Chin and
Che, 1982), hospitals (Lin, 1980), hotels
(King, 1988) and a host of other places
(Stevens and Unal, 1992).
However, application of SQC techniques
to the performance evaluation of personnel is
not well established. This paper shows the
efficiency of statistical control charts, which
are part of SQC, in evaluating the perfor-
mance of employees in the reservations office
of a service industry. It describes in detail the
data and their method of collection showing
samples of the same. It then analyzes these
–
data by X -R charts whose theory is briefly
presented. Finally, it presents a subjective
quantitative measure for performance evalua-
tion.
Data description and their collection
The data described here refer to the perfor-
mance evaluation of staff of a reservations
office of a service industry. The reservations
are mostly telephone based, for which the
incoming calls are handled by a automatic call
distribution (ACD) system. The system,
which automatically distributes the incoming
call to a free agent according to a pre-estab-
lished priority, is continuously monitored
through a computerized management infor-
mation system (MIS) which, besides other
activities, produces regular statistics about,
inter alia, the following performance measures
of the reservations office staff who handle
these calls:
The assistance provided by the graduate student,
Mr Salem Ba Abdullah, in data collection and
analysis is gratefully acknowledged.
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 6 · 1998 · 204–212

• number of calls answered per day; against the following nine criteria and
• average talk time per call in seconds; assigned a point for each if found to be
• duration an employee remains on job per acceptable:
day in minutes. (1) name tag;
(2) shirt;
These data were collected for 25 employees
(3) tie;
for a period of ten days and are shown in
(4) trousers;
Tables I-III.
(5) trouser belt;
Besides the above, data were also collected, (6) stripes;
manually through the supervisor’s subjective (7) shoes;
evaluation, of the following two measures for (8) socks;
different employees: (9) hair.
(1) transaction skills of employees;
(2) appearance of employees. A sample of the points assigned to 25 employ-
ees each of the five times is shown in Table VI.
For the first measure an employee was evalu-
ated at random five times a month by a super- –
X –R charts theory
visor against 13 “transactions”. A grade is Of the two kinds of control charts, namely
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then allocated from an arbitrarily assigned –

value as shown in Table IV. The total “score”
for each employee at each evaluation is 100.
A sample of the points assigned to 25
employees each of the five times is shown in
Table V.
For “appearance”, each employee is judged
at random five times a month by the supervisor
attributes and variables types, X –R charts
belong to the second category and are perhaps
the most powerful of these (Duncan, 1974).
They are based on the assumption that the
individual values are normally distributed and
are still valid for slightly non-normal popula-
tions. The two charts are used together, the
R-Chart for controlling the variability of the

Table I Number of calls answered per day for ten days by 25 employees

Day
Employee 1 2 3 4 5 6 7 8 9 10
1 70 71 105 103 69 57 127 72 57 103
2 110 109 129 132 133 160 133 94 193 144
3 88 109 97 140 154 133 144 113 143 137
4 117 116 127 152 125 146 141 166 132 148
5 231 190 231 184 274 137 203 226 180 177
6 107 133 136 114 136 133 114 126 118 177
7 196 173 139 151 192 153 185 119 122 166
8 143 147 140 120 159 153 175 119 183 168
9 58 98 100 100 112 118 151 159 105 116
10 165 179 177 242 242 199 210 231 232 196
11 100 56 100 91 85 106 118 114 92 114
12 136 103 152 112 116 106 106 120 139 136
13 102 94 114 143 79 137 118 120 123 110
14 120 161 52 139 177 138 153 151 134 165
15 197 287 200 220 207 205 200 230 282 257
16 132 122 124 113 129 104 121 116 80 112
17 116 135 147 113 151 142 164 118 109 111
18 132 92 159 112 152 127 67 131 121 156
19 103 91 117 152 111 115 116 82 121 124
20 176 162 182 211 166 198 209 204 273 234
21 100 100 83 106 142 83 101 81 66 104
22 70 200 94 116 200 93 130 135 90 104
23 160 132 90 16 141 175 178 161 73 69
24 106 197 111 49 206 231 242 163 196 265
25 138 168 115 121 129 140 132 142 144 125

205
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 5 · 1998 · 204–212

Table II Average talk time in seconds for ten days for 25 employees

Day
Employee 1 2 3 4 5 6 7 8 9 10
1 150 102 142 159 118 124 143 118 162 165
2 168 159 138 149 148 129 156 154 111 148
3 172 151 143 133 122 149 143 146 153 154
4 154 143 140 127 136 141 149 134 168 148
5 84 159 90 111 62 111 90 89 134 86
6 135 120 116 138 115 125 126 125 139 92
7 92 87 117 114 84 131 112 102 126 110
8 137 115 132 160 112 131 123 102 118 126
9 191 166 168 201 162 153 138 151 173 187
10 101 107 118 96 96 94 93 101 93 113
11 100 140 100 199 186 168 111 148 207 169
12 103 153 111 111 161 170 170 158 130 137
13 128 151 120 129 153 135 104 110 132 120
14 116 108 119 110 111 121 109 131 112 124
15 78 61 91 91 51 90 100 100 90 90
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16 89 142 146 161 143 134 156 139 56 112

17 150 136 141 155 125 131 108 156 129 131
18 109 169 123 109 123 111 143 137 190 131
19 184 210 175 156 175 180 171 180 164 165
20 75 82 91 80 58 97 93 100 79 88
21 100 100 127 131 143 100 111 162 176 182
22 117 120 149 146 130 200 121 121 143 104
23 89 91 104 88 107 105 102 109 109 109
24 135 83 131 137 88 80 70 98 98 71
25 114 101 121 123 147 139 135 137 91 123

Table III Duration in minutes an employee remains on job per day for ten days for 25 employees

Day
Employee 1 2 3 4 5 6 7 8 9 10
1 268 337 326 308 291 250 308 246 260 287
2 360 370 368 385 370 377 350 246 382 364
3 295 346 275 359 354 350 373 284 371 364
4 350 362 360 379 324 372 369 387 376 370
5 336 326 354 344 295 256 335 349 304 320
6 388 375 412 423 408 411 372 394 401 406
7 381 366 352 357 335 372 376 226 272 379
8 378 377 369 378 347 372 370 226 364 360
9 234 372 334 390 344 319 373 383 309 372
10 322 372 401 411 411 342 331 398 398 381
11 360 198 316 321 319 313 349 310 326 336
12 344 277 303 320 343 360 360 360 340 330
13 346 323 338 350 279 325 360 360 360 360
14 358 343 374 354 352 350 360 369 401 373
15 359 381 388 386 386 383 371 374 371 376
16 360 386 360 366 386 341 360 376 360 360
17 365 361 360 355 356 355 354 358 360 340
18 360 329 360 360 305 388 360 368 360 360
19 350 378 383 404 373 363 353 390 363 367
20 345 367 407 362 300 361 370 372 375 388
21 253 332 194 245 341 270 192 220 195 323
22 192 283 271 296 335 327 279 314 227 250
23 373 320 354 316 322 316 345 360 356 360
24 309 365 330 342 357 297 280 361 326 345
25 366 347 396 375 352 360 360 334 401 390
206
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 6 · 1998 · 204–212

Table IV Transactions and maximum assigned grades Table VI Grades for appearance of employees for five days
for 25 employees
Maximum
Name of transaction assigned grade Day
Preparation for receiving the call 10 Day 1 2 3 4 5
Welcoming the customer 7 1 6 7 6 5 7
Asking for the customer needs 7 2 7 7 7 8 6
Presentation of reservation information 10 3 6 6 5 5 7
Offering connection for return reservation 7 4 9 9 8 9 9
Providing the customer with alternatives 7 5 6 6 7 6 8
Providing the customer with other travel 6 5 5 5 6 5
information 4 7 4 5 4 5 6
Reviewing with the customer all the information 8 9 9 9 9 9
given 10 9 4 4 4 6 5
Reminding the customer about reporting time 7 10 7 7 7 7 8
Reminding the customer about reconfirmation 7 11 5 5 6 6 6
Providing special services to the customer 7 12 6 5 5 5 7
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Controlling the call duration 10 13 9 9 9 8 8

Thanking the customer before finishing 7 14 6 6 6 6 5
Total 100 15 6 7 6 7 7
16 6 7 7 6 7
17 8 8 7 8 8
18 9 9 9 8 9
19 9 9 9 9 9
Table V Grades for transaction skills for five days for 25
20 9 9 9 9 9
employees 21 5 6 6 5 6
22 7 7 7 8 7
Day 23 9 9 9 9 9
Day 1 2 3 4 5 24 7 6 7 7 7
1 91 94 91 91 91 25 6 6 6 7 6
2 95 92 95 97 95
3 96 91 92 92 96 –
process and X for controlling the process
4 92 88 90 89 90 average. The construction of these charts is
5 83 80 81 85 85 described below. It must be remembered that
6 84 86 86 85 87 the R-chart is plotted first; any points outside
7 95 92 93 94 98 the control limits are checked for assignable
8 91 89 91 94 95 causes and rejected if one is found, and the
–
9 94 95 94 95 96 data are replotted. The X chart is plotted
10 88 83 84 83 89 only when the variability of the data is under
11 96 90 96 97 97 control. Also, it must be noted that the data
12 95 97 95 93 95 are to have subgroups of a constant sample
13 84 81 75 75 79 size, n.
14 91 84 81 85 86 For an R-chart the range of each subgroup
–
15 95 96 98 96 99 is found and R calculated. The upper and
– –
16 83 79 75 79 79 lower control limits are the D4R and D3R
respectively where the values of D3 and D4
17 86 80 77 83 79
are found from a table corresponding to the
18 86 90 88 82 89 –
given value of n. For an X - chart, the value of
19 97 94 97 91 94 – –
X is computed for each subgroup and then X
20 96 95 91 89 92
calculated. The upper and lower control
21 91 92 91 95 98 – – – –
limits are then X + A2R and X – A2R where A2
22 95 96 94 95 91
is found from a table corresponding to the
23 94 92 92 94 96 given value of n. It must be noted that, for
24 92 92 94 91 94 each of the two charts, if the lower limit
25 84 79 76 77 78 becomes negative, it is taken as zero.
207
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 5 · 1998 · 204–212

Data analysis and discussion Table VII Control charts values for number of calls answered per day by 25
employees for ten days
For each of the five data sets mentioned earli-
er and shown in Tables I-III, V and VI the Avg Cl Ucl Lcl Rnge Cl Ucl Lcl
normalcy condition was first checked by 83 140 164 116 70 79 141 17
134 99
plotting on normal probability paper: calcula-
– – – 126 66
tions of X,R, X, R , and the upper and lower 137 50
control limits for the two charts are shown in 203 137
Tables VII-XI. The control charts, one R and 129 70
– 160 77
the other X for each of these five data sets are
151 64
shown in Figures 1-10. It may be noted that
112 101
for each of the five R-charts, all the points fall 207 77
within the control limits. Hence, it is consid- 98 62
ered that the variability of the process was 123 49
– 114 64
under control in each case and the X-charts
139 125
can then be analyzed.
229 90
The following points values were assigned 115 52
to different employees for the different kinds 131 55
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of data: 125 92
• for all the measures except the “Average 113 70
202 111
talk time per call”;
97 76
• zero point if the employee’s sample average 141 79
is below the lower control limit; 142 79
• one point if the employee’s sample average 143 78
is between the limits; 143 79
Notes:
• two points if the employee’s sample average – –
Avg = Average ( X); Ucl = upper control limit: Cl = central line
– ( X); Lcl
is above the upper control limit. = Lower control limit; Rnge = Range (R); Cl = Central line ( R).
For the “Average talk time per call” the fol-
lowing points system was developed: Table VIII Control charts values for average talk time per call in seconds for
• zero point if the employee’s sample average 25 employees for ten days
is above the upper control limit; Avg Cl Ucl Lcl Rnge Cl Ucl Lcl
• one point if the employee’s sample average 138 127 146 108 63 60 107 13
is between the control limits; 146 57
• two points if the employee’s sample average 147 50
is below the lower control limit. 144 41
102 97
The total points thus accumulated are shown 123 47
in Table XII. This shows a minimum of 2 and 108 47
126 58
a maximum of 9 points. This can be used for
169 63
(1) identifying the causes of low performance 101 25
of some employees; 153 107
(2) devising training methods for improving 140 67
the above; 128 49
116 23
(3) future monitoring of the performance.
84 49
Furthermore, comparative studies can be 128 105
136 48
carried out between the set of employees of
135 81
one reservations office and that of the other. 176 54
The overall performance of different reserva- 84 42
tions offices can be analyzed using a consis- 133 82
tent methodology. 135 96
101 21
It may be mentioned that, since in the
99 67
above analysis the employees were arbitarily 123 56
sequenced on the control chart, no other Notes: –
–
analysis such as the application of run theory Avg = Average ( X); Ucl = upper control limit: Cl = central line –( X);
(Duncan, 1974) is possible. Lcl = Lower control limit; Rnge = Range (R); Cl = Central line ( R).

208
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 6 · 1998 · 204–212

Table IX Control charts values for duration an employee remains on job per Table XI Control charts values for grades of appearance of 25 employees for
day in minutes for 25 employees for ten days ten days
Avg Cl Ucl Lcl Rnge Cl Ucl Lcl Avg Cl Ucl Lcl Rnge Cl Ucl Lcl
288 345 374 316 91 92 164 20 6 7 8 6 2 1 3 0
357 139 7 2
337 98 6 2
365 63 9 1
322 98 7 2
400 51 5 1
336 155 5 2
355 152 9 0
344 156 5 2
378 89 7 1
316 162 6 1
335 83 6 2
341 81 9 1
365 58 6 1
379 29 7 1
367 45 7 1
358 25 8 1
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357 83 9 1
374 54 9 0
367 107 9 0
259 149 6 1
280 143 7 1
345 57 9 0
334 85 7 1
371 67 6 1
Notes: Notes:
– – – –
Avg = Average ( X); Ucl = upper control limit: Cl = central line –( X); Avg = Average ( X); Ucl = upper control limit: Cl = central line –( X);
Lcl = Lower control limit; Rnge = Range (R); Cl = Central line ( R). Lcl = Lower control limit; Rnge = Range (R); Cl = Central line ( R).

Table X Control charts values for grades for transaction skills of 25 employ-
ees for ten days
Table XII Performance measure grades for 25 employees
Avg Cl Ucl Lcl Rnge Cl Ucl Lcl
92 90 93 87 3 6 12 0 PM Total
95 5 Employee Calls ATT Duration Skills Appearance points
93 5 1 0 1 0 1 0 2
90 4 2 1 1 1 2 1 6
83 5 3 1 0 1 1 0 3
86 3 4 1 1 1 1 2 6
94 6 5 2 2 1 0 1 6
92 6 6 1 1 2 0 0 4
95 2 7 1 2 1 2 0 6
85 6 8 1 1 1 1 2 6
95 7 9 0 0 1 2 0 3
95 4 10 2 2 2 0 1 7
79 9 11 0 0 1 2 1 4
85 10
12 1 1 1 2 1 6
97 4
13 1 1 1 0 2 5
79 8
81 9 14 1 1 1 0 0 3
87 8 15 2 2 2 2 1 9
95 6 16 1 1 1 0 1 4
93 7 17 1 1 1 0 1 4
93 7 18 1 1 1 1 2 6
94 5 19 0 0 1 2 2 5
94 4 20 2 2 1 1 2 8
93 3 21 0 1 0 1 0 2
79 8 22 1 1 0 2 1 5
Notes: – 23 1 2 1 2 2 8
–
Avg = Average ( X); Ucl = upper control limit: Cl = central line –( X); 24 1 2 1 1 1 6
Lcl = Lower control limit; Rnge = Range (R); Cl = Central line ( R). 25 1 1 1 0 0 3
209
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 5 · 1998 · 204–212

Figure 1 R Chart for number of calls answered per day

160
140
120
Number of Calls

100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

–
Figure 2 X Chart for number of calls answered per day
240
220
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200
180
Calls

160
140
120
100
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

Figure 3 R Chart for average talk time (ATT) per call

120

100

80

60

40

20

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2
EMPLOYEE

–
Figure 4 X Chart for average talk time (ATT) per call
180
170
160
150
140
ATT

130
120
110
100
90
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

210
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 6 · 1998 · 204–212

Figure 5 R Chart for duration an employee remains on job per day in minutes
180
160
140
120
MINUTES

100
80
60
40
20
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

–
Figure 6 X Chart for duration an employee remains on job per day in minutes
410
390
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370
350
330
310
290
270
250
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

Figure 7 R Chart of grades for transaction skillls for employees

14

12

10

8
Grade

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

–
Figure 8 X Chart of grades for transaction skills for employees
100

95

90
Grade

85

80

75
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
EMPLOYEE

211
 Performance evaluation using statistical quality control techniques Work Study
Farhat Ali Burney and Ibrahim Al-Darrab Volume 47 · Number 5 · 1998 · 204–212

Figure 9 R Chart of grades for appearance of employees

2.5

2
Grade
1.5

0.5

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Employee

–
Figure 10 X Chart of grades for appearance of employees

9
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8
7
6
5
Grade

4
3
2
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
Employee

Summary Deming, W.E. (1982), Quality, Productivity and Competi-

This paper has presented the results of a
simple application of SQC to employee per-
formance evaluation.
It shows that standard SQC techniques can
be used to present complex performance data
in a simple form. The data are analyzed using
established techniques and can be compared
over time and across similar organizations.
The results can highlight quality problem
areas and indicate training or development
need.
SQC techniques are well established in
other areas of quality control and develop-
ment. This paper indicates that they may be of
use in performance evaluation, even where
such evaluation is based (in part) on subjec-
tive criteria.
References
Chin, Y.Y. and Che, T.T. (1982), “Quality control in the
educational service – a Singapore experience”, Asia
Pacific Journal of Quality Management.
Crosby, P.B. (1980), Quality is Free, New American Library,
New York, NY.
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Duncan, A.J. (1974), Quality Control and Industrial Statis-
tics, Richard D. Irwin Inc., Homewood, IL.
Garvin, D.A. (1988), Managing Quality: The Strategic and
Competitive Edge, Free Press, New York, NY.
Ishkiwa, K. (1985), What is Total Quality Control? The
Japanese Way, Prentice Hall, Englewood Cliffs, NJ.
Juran, J.M. (1986), “The quality trilogy: a universal
approach to managing quality”, Quality Progress,
August.
King, C.A. (1988), “Service oriented quality control”,
Cornell Hotel and Restaurant Administrative
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Lin, B. (1980), “Building quality control systems for
hospital food service operations”, International
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