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The 'Analyze’ phase is the third phase of the Six Sigma DMAIC cycle. In the ‘Define’ phase the process problems are identified and defined. In the ‘Measure’ phase, data are collected and collated to measure the performance of the process. In the Analyze phase, statistical analysis and root cause analysis of the problem is done. In simple terms, the data that are collected in the ‘Measure’ phase is analyzed. This phase also focuses on determining the impact of various factors which act as contributors to the process output. The activities in the ‘Analyze’ phase include:
                   ?    Identifying KPIs (Key Performance Indicator Variables)
                   ?    Defining performance objectives.
                   ?    Analyzing the process maps to identify sources of variations.
                   ?    Determining and analyzing the root causes.

In the ‘Analyze’ phase of the DMAIC cycle various types of analysis are performed, which include the following:

• Correlation and Regression Analysis: This analysis is performed when the process is dealing with two or more variables. The relationships between/among the variables (if any exist) and their impact on each other are studied under this analysis. Say, there are two variables ‘X’ and ‘Y’, the objective of this analysis will be to assess if any relation exists between them. If any relation exists, say Y=F(X), then the next objective will be to find out the relation ‘F’ in the best possible way. Various methods of studying correlation are as follows:
  • Scatter diagram method
  • Karl Pearson’s coefficient of correlation
  • Rank correlation method
  • Method of least squares

• Testing of Hypothesis: A hypothesis can be an assumption about the population parameter. Examples of parameters are population mean or proportion. It is used to test the validity of an idea using observed data. Hypothesis testing involves the careful construction of two statements: the null hypothesis and the alternative hypothesis.

• Failure Mode and Effects Analysis: It is an industrial-strength risk assessment tool that gives a step-by-step approach to recognize and evaluate all potential failures in a design manufacturing or assembling process of a product or a process. It can be viewed as an assessment tool, as it is used to diagnose the opportunities or as a prevention tool, as it is used to prevent high-level risks. There are various types of FMEAs available for organizations. These FMEAs can be put to use per their requirements. The major types of FMEAs are as follows:
  • Design FMEA (DFMEA): DFMEA is mainly used to analyze product or component designs
  • Process FMEA (PFMEA): PFMEA is mainly used to assess transactional processes

• Gap Analysis: In management terms, gap refers to ‘space’, i.e., the space between where one is and where one wants to be. Gap analysis refers to a business resource appraisal tool that enables an organization to compare its real performance with its potential performance, i.e., where the organization is and where the organization desired to be. Overall it is about evaluating and improving the business processes.

The Analyze phase of the DMAIC cycle is critical for any business project or process. The result obtained during this phase will be required for the creation of action items in the subsequent phases. A project manager or a process owner needs to choose and use proper tools to complete this phase successfully.

To read more about the next phase, please click here