With each Root Cause you now need to understand the financial cost or impact of each of these areas of opportunities. The questions to be asked is: What is the cost to the organization each time this problem occurs?  When you multiply the cost of the problem by the number of occurrences it gives you an idea of the financial implications each of these is having on your organization.  Put these in a list called "Financial Impact".  The list should contain a minimum of the following information:

•        Name of the Line / Cell
•        Name of equipment / component / system
•        Root Cause name
•        Root Cause explanation
•        Number of occurrence per (Day/Week/Month/Year)
•        Cost of each occurrence
•        CI Opportunity Category

Most companies have the information available to understand the hard tangible costs.  When you are going through this you may run into situations were non-tangible costs come into play.  These are harder to put a cost figure on.  You may need to start gathering factual data for these figures. Some companies "SWAG" the cost. If you are going to "SWAG" the cost it is advised to put a system into place to gather accurate information to determine the actual cost impact.

Sort the "Financial Impact" list by most expensive to least expensive.

Tip: play with the list. You can also sort the to find the most expensive _______________.

•        Line
•        Cell
•        Equipment
•        Component
•        System
•        Root Cause
•        CI Opportunity Category

This will help your management team to understand some of the "Systemic" issues.

Note: The information contained in this blogg is the opinion of the author and is intended for discussion purposes only.