Chapter 27

1. Chapter 27 Additional Analysis Methods

2. Objectives • Use various tools and techniques to compare current and future states in terms of pre defined metrics. • Root cause analysis, issues, and tools for resolving problems. • Analyze forms of waste (waste analysis).

3. GAP Analysis • A gap analysis is a tool used to identify a performance difference between a current state and a desired future state. • Gap analysis are performed at multiple levels: • 1. Business level: A business may compare its performance to its competitors or the general industry. Gaps at the business level are usually financial. • 2. Process Level: The current processes may be compared with the cost, cycle time, and quality of other processes to remain competitive. • 3. Product Level: Gaps at this level are in features, capability, cost, and quality.

4. Root Cause Analysis • Solving a problem means identifying the root cause and eliminating it. • 5 Whys: • 1. Why did this occur? • 2. Why did it occur? • … • See example 27.1 on page 284.

5. Cause and Effect Diagram • A cause and effect diagram (fishbone diagram) divides causes into several categories (fig 27.2, page 286). • A brainstorming session usually helps identify potential causes, and sub causes. • The participants should include people with a working knowledge of the process as well as subject matter experts.

6. Pareto Chart • A Pareto chart (fig 27.3, page 286) is an excellent tool for seeking out and prioritizing root causes. • The y axis identifies the number of defects and is associated with the bar height. • The x axis identifies the defect type. • The purpose of the Pareto chart is to identify the vital few from the trivial many in what is called the 80/20 rule. • The first 2 bars represent 80% of the defects, and the remaining 20% is spread over the rest.

7. Fault Tree Analysis • A fault tree analysis helps the user consider underlying causes for a failure mode and study the relationships between various failures (fig 27.6, page 290).

8. Waste Analysis • The National Institute of Standards and Technology (NIST) identifies 8 sources of waste: • 1. Overproduction: producing sooner than is needed. • 2. Inventory: excessive supply of parts or materials. • 3. Defects: additional material, labor, and time to fix problem. • 4. Processing: efforts that do not add value. • 5. Waiting: for equipment, instructions, or material does not add value. • 6. Motion: movement of persons that does not add value. • 7. Transportation: movement of parts due to poor layout. • 8. People: failing to make use of ideas and creativity to make continuous improvement.

9. Summary • A gap analysis is a tool used to identify a performance difference between a current state and a desired future state. • Solving a problem means identifying the root cause and eliminating it. • A cause and effect diagram (fishbone diagram) divides causes into several categories. • The purpose of the Pareto chart is to identify the vital few from the trivial many in what is called the 80/20 rule. • A fault tree analysis helps the user consider underlying causes for a failure mode and study the relationships between various failures. • The National Institute of Standards and Technology (NIST) identifies 8 sources of waste.

10. Home Work • 1. What is a gap analysis? • 2. Explain 3 types of gap analysis. • 3. What is root cause analysis? • 4. What does cause and effect diagram do and what is another name for it? • 5. What is the purpose of a Pareto chart? • 6. Explain 8 sources of waste.