The Concept of Process Entitlement
Entitlement is one of the most important concepts in process improvement, and is particularly useful in project selection. It is defined as the best performance that you can reasonably expect to get from a process (Harry and Schroeder [2000]). As the term implies, leadership is essentially entitled to this level of performance based on the investments they have already made.
Knowing the process entitlement defines what's possible. If entitlement is 500 units per day and the baseline performance is 250 units/day, you can easily see that there is a lot of room for improving this process. On the other hand, if current baseline performance is 480 units/day there is little room for improvement. If higher production ...
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