6.3 Analyze - Evans Chapter 5 George Chapter 8 M GSC 485...

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MGSC 485 – Business Process Management Moore School of Business University of South Carolina 1 Evans Chapter 5; George Chapter 8
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Analyze Highlights Purpose: Pinpoint and verify causes affecting key input and output variables. 2
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Root Cause Analysis 3
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What is Root Cause Analysis Part of Analyze Phase Purpose : used to find and correct the most important reasons for performance problems Method : Use Tools to analyze data collection & process map to determine root cause of defects. Looking for gaps between current performance and goal performance 4
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What is Root Cause Analysis Utilize numerous tools to identify true root causes of problems Tools for Identifying potential causes Tools for Verifying potential causes Steps to Root Cause Analysis Define Problem (Define) Gather Data (Measure) Identify defect/causal factors that contribute to problem (Analyze) Develop solution Recommendations (Analyze) Implement solutions (Implement) 5
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Qualitative Techniques pareto analysis 5 whys fishbone diagram C & E matrix tree diagram 6
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Tools for Identifying Potential Causes Purpose : increase the chances of determining the true root cause of a problem Method : to consider a wide range of potential causes that will enable you to find patterns in your data These tools are techniques for spurring creative thinking Deciding which tools to use? Data Displays (Pareto Charts) Cause-focus brainstorming (5Whys, fishbone diagram, C&E Matrix) 7
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Pareto Charts Purpose : to display data that help the observer in determining the “vital few” sources of trouble in a problem A type of bar chart that allow the viewer to get a general idea of what (defects, errors, or sources) most effect a problem 80/20 rule Method : Develop a chart with histogram of the data from the largest in frequency to the smallest. 8
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Pareto Charts (Example of Delay in processing credit cards) 9 Method : Develop a chart with histogram of the data  from the largest in frequency to the smallest.  
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Pareto Charts Interpreting Pareto Charts Clear Pareto Effect No Pareto Effect Tips The most frequent problems may not have the biggest impact in terms of quality, time, or cost When possible construct two Pareto charts for a set of data First focuses on count or frequency Other focuses on impact 10
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Colonial Insurance (Never Effects) 11
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5 Whys Purpose : to push members of the team to think about and identify the root cause through continually asking Why? Good rule of thumb is to use 5 Whys? Method : Start from a problem or cause and work backward asking Why? Goal is to continue until reaching a potential root cause 12
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5 Whys Toyota Example: Problem- Machine Fails Why? Fuse Blew Why? Lack of lubricant Why? Pump axle worn Why? Sludge Why? Missing something to keep out sludge 13
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Fishbone Diagram Purpose : Provide a pictorial analysis for
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This note was uploaded on 07/02/2011 for the course MGSC 485 taught by Professor Ahire during the Spring '10 term at South Carolina.

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6.3 Analyze - Evans Chapter 5 George Chapter 8 M GSC 485...

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