AAOM Handbook

offered on the provision that specific service work is completed on the car, according to a specified schedule, and by accredited personnel.

The relationship between the performance of a Process and the application of the theory generally follows the law of diminishing returns. There are two characteristics of the interpretation of the theory that determine the shape of the curve. These are; • the design of the Process (and it’s environment) in regard to the requirements of the theory, • the strategies adopted for implementing the theory, and, there are two characteristics of the application of the theory that determine where on the curve a Process will be operating; • the execution of the strategies, and • the cost effectiveness of the resources employed.

This may be represented in the following diagram.

The consistent application of a proven theory (relating to inputs and operation) of a Process is a leading indicator of its output performance.

There can be considerable differences in the way the output of a Process responds to changes in the application of the theory. • Immediate and linear change. For example, the change in the direction of a car when the steering wheel is turned.

© McAlear Management Consultants 2005 – 2012

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