Six Sigma Tool Navigator: The Master Guide for Teams

2017-07-07 02:10:07

AKA

Space Plot, Risk Management Diagram

Classification

Analyzing/Trending (AT)

Tool description

The risk space analysis tool is used by teams to ensure early detection of potential problems in any proposed change activities or to assist in the understanding of plan/action outcome uncertainty. In the area of risk management, a risk space analysis plot allows the identification of risk factors, determines if certain risks need to be controlled, and suggests what evaluation and decision making is required to proceed with a particular strategy or action plan.

Typical application

To identify controllable and uncontrollable risk factors.

To assess risk based on data collected from similar past events.

To provide an understanding of uncertainty inherent in a change plan.

To manage risk or uncertainty by systematically addressing the decisions that need to be made about the risk.

Problem-solving phase

→	Select and define problem or opportunity
→	Identify and analyze causes or potential change
	Develop and plan possible solutions or change
→	Implement and evaluate solution or change
	Measure and report solution or change results
	Recognize and reward team efforts

Typically used by

1	Research/statistics
	Creativity/innovation
	Engineering
3	Project management
	Manufacturing
5	Marketing/sales
	Administration/documentation
4	Servicing/support
	Customer/quality metrics
2	Change management

links to other tools

before

Data Collection Strategy

Thematic Content Analysis

SWOT analysis

Systems Analysis Diagram

Information Needs Analysis

after

Variance Analysis

Run-It-By

What-If Analysis

Organization Readiness Chart

Project Planning Log

Notes and key points

Optional: A severity rating of 1–5 could be assigned to plotted risk factors.

Primary data are data/information collected first-hand by the researcher: surveys, interviews, observations, focus groups, etc.

Secondary data are summarized data/information collected by the researcher during a review of the literature: case studies, statistics, research findings, historical data, etc.

Step-by-step procedure

STEP 1 Collect primary data from data sources such as interviews, surveys, quality function deployment (QFD), focus groups, and brainstorming sessions.

STEP 2 Collect secondary data. Review relevant on-line and off-line literature, "best practices," benchmarking data, research reports, case studies, etc.

STEP 3 Select the appropriate data for the process change under consideration. See example Identification of Risk Factors in Business Process Reengineering (BPR) Work.

STEP 4 Using flip charts, create several categories of concern, issues, or related process activities. Consider the following headings: process, people, requirements, schedule, cost, environment, and others. Beneath the category headings list potential risks that pertain to those areas.

STEP 5 Draw a risk space analysis plot as shown in the example. Now, ask yourself if the risks you identified are (1) controllable or not controllable, or (2) observable or not observable. Your answers will tell you where to record the items on the plot. After completing this step, date the plot.

STEP 6 For future reference, draft a list of the reasons why you placed the risk factors where you did.