Chapter 27

Additional Analysis Methods

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).

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.

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.

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.

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.

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).

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.

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.

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.