GSOE9810 – Week 1 – Issue Analysis

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GSOE9810 Week 1 – Issue Analysis. Source McK&Co 1

Quality as an Investment Decision

•  What is the aim?
–  Improved return, competitiveness
–  Reduced risk
•  Identify what needs to be “managed”
–  Product quality
–  Reliability
–  Supply chain characteristics (e.g. JIT, service)
•  Invest & allocate resources
•  Need to prioritize

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 2

1
 The Scientific Method (briefly)
•  Data
–  Observe
–  Measure
–  Experiment (design)
•  Hypothesis
–  Formulate hypotheses
–  Test hypothesis (predict future values)
–  Modify hypothesis

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 3

Data- (fact) based Decision Making

DATA ANALYSIS INFORMATION

KNOWLEDGE UNDERSTANDING

DECISION

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 4

2
 Issue Analysis

•  Defines the scope of the (quality) issue (problem)

•  Breaks a large problem into smaller pieces
•  Generates multiple possible solutions
(“Hypotheses”)
•  Suggests a path to resolving the issue (problem)
•  Indicates a sequence and priority for solving
multiple issues
•  Comprehensive and still efficient

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 5

Issue Tree + Process Flow Analysis

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 6

3
 Issue Analysis Framework
Issue Hypothesis Analysis Data (source) End Product

This can be a This is the likely To make the Decisions are data- This is the output
question, an solution to the issue decision “yes” or driven. Analysis is from the analysis –
opportunity, any or problem. It is the “no” we need performed on data. in other words the
statement so that it reason for information that we The quality of the information and
can be answered answering “yes” or get from models decision depends on knowledge gained.
“yes” or “no”. “no” (e.g. cost, stress) quality data.
1. Is poor quality a Yes – and with Customer buying Customer interviews Market share trends
reason for loss in targeted decision analysis Customer returns Correlation with
market share? improvement in Market analysis Service calls quality
specific areas, we Defect analysis Warranty repairs Customer views
can reverse this Reliability analysis Market figures
trend
2. Should ABC Yes – ABC’s quality Technology trend Trade Journals Forecast of
invest $10m in new will become analysis increasing gap
manufacturing uncompetitive Benchmarking and Process data: print between us and
technology? without upgrading review of registration error competitors as a
to digital drive competitive trends (vision function of time
systems. investment system dump)
Process capability Loss forecast
analysis

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 7

Issue Analysis is Part of a Structured Analytical

Problem Solving Process

Analyze Design + Specify Capture

Capabilities
Understand Strategies & Implement &
&
Issues Solutions sustain
shortcomings

Much more on this later ….

GSOE9810 Week 1 – Issue Analysis. Source McK&Co 8