How it works
Two loops, one objective
Top management and operations each run their own control loop. Both work toward the same planned OCFR, and they meet at management review.
Top management loop
Planned OCFR and the risks to it
Top management sets the planned OCFR for the period, the figure the business needs operations to generate. It scans its context across seven domains (social, technological, economic, environmental, political, legal and ethical) and records each risk as something that could stop the organization from reaching that objective. Each risk carries its own plan.
Operations loop
Every run measured against its plan
Each order receives its own planned OCFR at contract review, set with the Strategic Alignment Configurator and approved by top management. As production runs, each run is measured against that plan. Across the period the runs form a distribution that shows where the process sits and where the shortfall is.
Where the loops meet
Management review that answers a question
- 9.3.1 · What to look forWhether operations' measured OCFR is aligned with top management's planned OCFR.
- 9.3.2 · Inputs from both sidesTop management brings the planned OCFR and its context risks. Operations brings the measured OCFR and its trend.
- 9.3.3 · The reportThe review's exhibits: the trend graph, the run matrix and the decisions taken.
Reading the band
Green, amber, red
Every controlled characteristic has an operating band. What happens next depends on where the reading falls.
The process is holding. An adverse trend inside the band opens an improvement action, not a corrective action.
The process is drifting. It is watched, and the cause is investigated before it reaches exception.
A corrective action opens automatically. It closes only when the process returns to the green band and the next run confirms it holds.
Closing the loop
Every correction becomes a better plan
A corrective action is not complete when the paperwork is signed. It must update the risk register: either the control or resource is improved, or a new risk is raised. An improved control changes the work instruction, and the people who run it are trained on the new revision before it takes effect.
That is how a correction on the shop floor becomes part of the plan top management reviews.