Business Performance Analysis Techniques

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Questions and Answers

What is the correct formula for calculating the percentage of prevalent complaints based on the two most dominant complaints?

Subtract the frequencies of the two complaints from the total complaints.

Add the frequencies of the two complaints and multiply by 100%.

Multiply the frequencies of the two complaints and divide by total complaints.

Add the frequencies of the two complaints, divide by total complaints, and multiply by 100%. (correct)

Which two complaints accounted for the majority of complaints in the restaurant?

Long wait times and staff attitude.

Slow service and cramped tables. (correct)

Slow service and poor food quality.

Cramped tables and high prices.

What is an effective measure to address slow service in the restaurant?

Increase the menu options.

Train existing staff and add another server. (correct)

Reduce the restaurant hours.

Change the restaurant's location.

How does Pareto analysis help with risk management?

By identifying the most significant risks or hazards. Signup and view all the answers

What is the primary goal of the Root Cause Analysis?

To relate performance problems to potential causes. Signup and view all the answers

What benefit does Pareto analysis provide in terms of prioritizing actions?

It provides a framework for informed decision-making regarding issue prioritization. Signup and view all the answers

What is one way to reduce costs using Pareto analysis?

By focusing on the main causes of problems or waste. Signup and view all the answers

What action was taken to solve the problem of cramped tables?

Removing decorative furniture and spacing tables better. Signup and view all the answers

What is the most significant function that customers complain about related to ATMs?

Dispensing cash Signup and view all the answers

Which two risks were identified as the highest by the bank?

Machine jams and heavy computer network traffic Signup and view all the answers

What is the purpose of calculating the Risk Priority Number (RPN)?

To prioritize addressing risks based on their severity, occurrence, and detectability Signup and view all the answers

What score corresponds to the severity of a customer not receiving cash from an ATM?

8 Signup and view all the answers

What potential failure mode has an RPN of 200?

Customer does not receive cash Signup and view all the answers

What was a root cause identified for the discrepancy in cash balance?

Power failure during transaction Signup and view all the answers

Which action was suggested for the risk associated with machine jams?

Internet-low cash alert Signup and view all the answers

Which failure mode resulted in an annoyed customer due to excessive wait times?

Heavy computer network traffic Signup and view all the answers

What represents the detectability score for the failure mode 'dispense too much cash'?

7 Signup and view all the answers

Which action was suggested to mitigate the risk of heavy computer network traffic?

None Signup and view all the answers

What does the Pareto Principle suggest about the distribution of organizational problems?

Eighty percent of activity is caused by twenty percent of the factors. Signup and view all the answers

Which complaint received the highest frequency from customers surveyed by the restaurant manager?

Slow service Signup and view all the answers

According to the data presented, what percent of total complaints were about cramped tables?

20% Signup and view all the answers

What is the significance of focusing on the 20% of factors according to the Pareto Principle?

It targets the factors that contribute to the majority of issues. Signup and view all the answers

From the provided data, what action should the restaurant manager prioritize to improve customer satisfaction?

Address slow service. Signup and view all the answers

How can the Pareto Principle be utilized in business operations according to the gathered data?

By analyzing the frequency of each complaint. Signup and view all the answers

What is the total number of complaints recorded in the restaurant survey?

60 Signup and view all the answers

Which factor contributed the least to customer complaints based on the survey?

Cold dinner Signup and view all the answers

What is the main goal of applying the Pareto Principle in the context of the restaurant manager's findings?

To identify key areas for improvement. Signup and view all the answers

What can be inferred about the dining experience based on the complaints listed?

Service-related issues are more critical to customer experience. Signup and view all the answers

What is the primary goal of conducting Kaizen events in Toyota Motor Philippines Corporation?

To continuously improve production processes Signup and view all the answers

Which of the following best describes the method of implementing changes during Kaizen events?

Swift implementation of small-scale changes is prioritized. Signup and view all the answers

What does Total Productive Maintenance (TPM) empower operators to do?

Assume full ownership over their equipment's maintenance Signup and view all the answers

Which of the following is NOT a key element of Total Productive Maintenance?

Downsizing operations Signup and view all the answers

What is a significant benefit of adopting Kaizen in business operations?

Improved responsiveness to customer needs Signup and view all the answers

How does Kaizen contribute to a culture of excellence within an organization?

By promoting continuous improvement and innovation Signup and view all the answers

Which of the following describes the relationship between Kaizen and cost savings?

Kaizen leads to significant cost savings by eliminating waste. Signup and view all the answers

What is the primary aim of Total Productive Maintenance?

To maximize equipment productivity and efficiency Signup and view all the answers

What is one of the primary objectives of Total Productive Maintenance (TPM)?

Maximizing equipment uptime Signup and view all the answers

Which group of individuals is NOT typically part of the TPM team?

External consultants Signup and view all the answers

What does autonomous maintenance primarily involve operators doing?

Performing routine maintenance tasks like cleaning and lubrication Signup and view all the answers

What is the benefit of planned maintenance in TPM?

Aligning maintenance tasks with equipment-specific requirements Signup and view all the answers

What helps in the early identification of equipment issues?

Predictive maintenance techniques Signup and view all the answers

What is essential in managing employee knowledge in TPM?

Comprehensive training on TPM methodologies Signup and view all the answers

What is the purpose of establishing regular review meetings in TPM?

To share feedback and improvement opportunities Signup and view all the answers

What should be monitored to measure progress in TPM?

Key Performance Indicators (KPIs) such as equipment uptime Signup and view all the answers

Study Notes

Pareto Analysis

Method: Identifies the most significant problems or factors that have the highest impact on overall performance.
Key Principle: The "80-20 rule" - 80% of activity is caused by 20% of the factors.
Application: Helps businesses focus on the most impactful factors to improve performance and reduce costs.
Example: A restaurant manager used Pareto analysis to identify the two most prevalent customer complaints: slow service and cramped tables.
Solution: Addressing these two complaints accounted for almost 70% of customer complaint resolution.

Failure Mode and Effects Analysis (FMEA)

Method: Identifies potential failures (problems), analyzes their effects (outcomes), and assesses their severity, occurrence, and detectability.
Objective: To proactively address potential issues and improve product, process, or service quality.
Example: A bank used FMEA to analyze potential failures in ATM cash dispensing.
Outcome: They identified "machine jams" and "heavy computer network traffic" as the top two risks.
Risk Priority Number (RPN): Calculated to rank each failure mode based on its potential impact. RPN is calculated by multiplying severity, occurrence, and detectability scores.

Kaizen Events

Method: A continuous improvement approach that involves the identification, analysis, and rapid implementation of small-scale improvements to maximize efficiency.
Key Principle: Focuses on teamwork, collaborative problem-solving, and elimination of waste.
Application: Toyota Motor Philippines Corporation (TMP) uses Kaizen events to improve production processes in areas like assembly lines, logistics, and supply chains.
Benefits: Reduced lead times, increased productivity, and improved product quality.

Total Productive Maintenance (TPM)

Method: A proactive maintenance approach aimed at maximizing equipment uptime and efficiency.
Key Principle: Empower operators to take responsibility for equipment maintenance and prevent breakdowns.
Elements: Autonomous maintenance, planned maintenance, quality maintenance, and focused improvement.
Benefits: Reduced downtime, increased equipment reliability, and improved production processes.
Steps:
- Set clear goals (e.g., maximizing equipment uptime).
- Form a cross-functional TPM team.
- Implement autonomous maintenance (operators conduct routine tasks).
- Conduct planned maintenance.
- Initiate early equipment management using predictive maintenance techniques.
- Train and educate employees on TPM methodologies.
- Implement quality maintenance.
- Focus on continuous improvement through regular review meetings.
- Practice total employee involvement.
- Monitor and measure progress using KPIs.

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Description

Explore key analytical methods such as Pareto Analysis and Failure Mode and Effects Analysis (FMEA). This quiz will help you understand how to prioritize tasks and proactively address potential issues in business settings for improved performance. Gain insights on applying these techniques through real-world examples.