TQM Implementation Project Part 2a - The Analyze Phase, How To Do It
This TQM article is a continuation of the article titled: TQM Implementation Project published on 13-May-2006. This issue is part 2a of the detail article on the subject. It will deal with the "How To" part of the ANALYZE phase of the D.A.I.C. methodology described in the article. More detail sequential steps will be explained as well as the use of the appropriate tools in this ANALYZE Phase. The scope of this article will limit to Data Collection, Trench Charting and Pareto Analysis.
The ANALYZE Phase
This is a critical phase where the current state of the subject matter as well as root causes of the problem will be analyzed in detail. This analysis is done systematically and logically as follows:-
For the ease of illustration of this article, I would use one typical project as a case study. This is a Reduction of Material Loss project.
To recap from my article "TQM Implementation Project: Part 1 DEFINE Phase, example of a "Problem Statement" is described as follows:-
Current State : Material Loss level is 5 percent against a target of 2 percent
Impact to Organization : The extra material loss has cost the organization $200,000 per year in negative variation in profit margin
Desire State : Material loss is reduced to 2 percent by December 2005
Given the Problem Statement, the team has to understand the extent of the loss by using a systematic approach i.e. to use the appropriate tools:-
Data collection | Trend Charting | Pareto Analysis | Fish-Bone Diagram | Why-Why Analysis
Data Collection
As the project deals with Material Loss of a production line, the team decided to understand the extent of the loss for a period of last 12 months. The team managed to collate these data from the production log sheet though manual, data are informative.
In the event data are not available, a data collection sheet needed to be designed to capture relevant data. The format of the data collection sheet will depends on the team member but it should be as simple as possible. Team leader need to assign a member to do the data collection, agree on what, where, when, who, how on data collection.
Trend Charting
With the data collected, team need to create a trend chart which is informative for the team to analysis. Simple trend chart such as a line graph, bar graph will be useful. From the trend of the material loss, team can identify whether. From the overall loss data, team need to stratify the data to understand the make up of this overall loss.
Pareto Analysis
From these loss components, team need to stratify them such a way that a Pareto Chart can be developed. As a Pareto Chart is a 80/20 analytical tool, team will select the top 20 percent of the components that contributes to the overall 80 percent of the loss.
My next article will continue Part 2b of this ANALYZE Phase, i.e. to deal with Fish Bone Diagram and Why-Why Analysis
-----------------------------------------------------------------
Free to reprint or re-publish
All rights reserved. You are free to reprint or re-publish this article as long as you include my resource box at the end of this article. Please ensure that the URL in the resource box remain intact and it is linked to the author's website.
-----------------------------------------------------------------
Resource Box: About the Author, LM Foong
The author holds a MBA major in TQM. He is an expert in Malcolm Baldrige Business Framework and Baldrige Assessment and TQM Implementations in manufacturing and service sector. He facilitates workshops and Cost Reduction and Productivity Improvement projects. He publishes TQM articles, ebooks, case studies, trainer manual and presentation slides available at More TQM articles or Please Visit my Web Site.
TQM Implementation Project Part 2b - The Analyze Phase, How To Do It
This TQM article is a continuation of the article titled: TQM Implementation Project published on 13-May-2006. This issue is...
TQM Implementation Project Part 3a - The Analyze Phase, How To Overcome Issues
This TQM article is a continuation of the article titled: TQM Implementation Project published on 13-May-2006. This issue is ...
Project Lifecycle Processes - Phase 3 Delivery Phase
The purpose of the Delivery phase to design, develop, test, implement and hand over the solution identified in Phase 2, the F...
TQM Implementation Project Part 4a - The Improve Phase, How To Do It
As indicated in my previous TQM article titled: TQM Implementation Project published on May 13, 2006 02:48:20 pm, I have shar...
TQM Implementation Project Part 1a - The Define Phase, How To Do It
This TQM article is a continuation of the article titled:TQM Implementation Project published on 13-May-2006. This issue is ...
Project Management
Project management is actually a carefully planned and organized effort which is set to accomplish a particular project in a ...
TQM Implementation Project Part 6b - How to Overcome Problem in Improve Phase
This TQM article, is a continuation from Part 6a published on [June 30, 2006 04:25:03 am]. In this article, I will share abou...
Project Lifecycle Processes - Phase I - Initiation Phase
The purpose of the Initiation Phase of a Project is to Identify, Scope and Gain Initial Approval for a Project or Projects th...
TQM Implementation Project
This article contains a summary of implementation of TQM improvement projects in the Manufacturing and Service Sectors over t...
Selecting Black Belts
Invariably, selecting the right Black Belts is crucial for the success of Six Sigma. According to Dr. Michael Harry, one of t...
How To Recognize Bottlenecks In Six Sigma Implementation
Identifying Six Sigma roadblocks and bottlenecks is essential for eliminating them for effective deployment and to reap the b...
Six Sigma For Small Businesses
Six Sigma is a series of systems that focus on implementing quality measurement strategies based on data and statistical anal...
Six Sigma for Small Business
It is not surprising that some people may perceive Six Sigma as being only for large corporations. Major corporations such as...
Project Management: History and Evolution
Project management, as we know it at present began to stretch its branches only a few decades ago, yet it was mounting around...
How to Control a Project Without Formal Project Management
You will probably have experienced this. You are the sponsor of a small project. It is not really a heavy project but the act...
The 6 Fundamentals of Six Sigma Training
The need for Six Sigma training has arisen following two reasons. One, the demands of industry could not be met with the exis...
Implementing Strategy:A Balancing Act
Strategies often fail in organisations because they are not successfully converted into actions that employees can understand...
Pay the Toll: How a "Toll Gate Review" Can Save a Project
We all have participated in a phased project where the completion of a particular phase was marked by much fanfare, speeches ...
How to Set Your Consulting Fees
For any consultant starting off, figuring out what you should bill your clients is often the most difficult challenge. Charge...
Time Management Consulting 101
You made the ChoiceIncreasing your company's profitability revolves around the focal point of numbers and the ability to acce...