Managing Quality Integrating the Supply Chain S. Thomas Foster

1. Managing QualityIntegrating the Supply ChainS. Thomas Foster Chapter 8 Data Analyses Using Pivot Tables 10/11 – 5:30PM

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5. Data Analysis Using Pivot TablesChapter 8 5. Repeatedly do aggregate analyseson the organizational categorical variables until you get down to the lowest level, the level at which you can physically correct or improve a process. You are trying to identify the 20% of the organization which is causing 80% of the problem. 6. Calculate the distribution percentage and the cumulative percentage to help identify the 20% of the organizational categorical variables causing 80% of the problem or opportunity.

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10. Data Analysis Using Pivot TablesChapter 8 What kind of patterns can we expect to find in our segmentation and stratification analyses of the variables which showed an 80/20 concentration in our aggregate analyses? We examine all combinations of paired categorical variables, which show an 80/20 concentration in our aggregate analyses, in our segmentation and stratification analyses. In the matrix, we want to see if the top 20% or the bottom 20%, whichever is our concern, cluster together or if they are randomly distributed throughout the matrix. If they cluster together, then the scope of the problem is narrowed with regard to who, what, when, where, how, and how much.

11. Data Analysis Using Pivot TablesChapter 8 What do we do if we find patterns, clusters in our segmentation and stratification analyses? When you find patterns, clusters of high or low values, you will have specified the scope of the problem as to who, what, when, where, how, and how much with regard to the operational categorical variables. Next, you need to go observe the processand ask questions of the people performing the process to understand why these patterns are occurring.

12. Data Analysis Using Pivot TablesChapter 8 In other words, the reason why the problem is occurring is related to who, what, when, where, how, and how much with regard to the operational categorical variables. But your data analyses of reports, interviews, surveys, data, and statistics are not going to show you why the problem is occurring. Your data analyses just provides you with the evidence you need to support your focus on a few operational categorical variables at a specific point in a specific process to save you time when you go see the process. You will use the PDCA method to identify the specific cause of the problem or the specific process improvement needed.