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Reverse analysis as a management tool

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Anonim

Inverse Analysis is the name of the methodology or management tool that, based on the result or objective that you want to achieve, proceeds to analyze the factors or causes on which said result depends, then continuing with the causes on which the causes depend. primary (that is, the sub-causes).

Not only are these causes determined, but also the values, indices, indicators, or ratios that they must record in order to be consistent with each other to make the desired result or results feasible.

Its benefits are multiple, among which it is worth mentioning:

  • Clarity in the vision and interrelation of the components, processes or causes. Allow the creation of models to analyze alternative solutions and responses. Facilitates the design of simulations. Its possibility of use in any type of activity, study, science or technique. The ease of use, and the great benefits of it obtained. Facilitates the construction of Command Boards and Balanced Scorecard.

Among the uses we have, and only by way of examples, the following.

  • In terms of quality, to determine the factors on which the specification of a certain level of failure depends. In medicine, for case studies and patients. In tax matters, to determine the requirements to be fulfilled in order to pay a certain sum. For the purposes of the negotiation work. Determine the factors or causes on which the speed or time for the development of a certain process or activity depends. For the analysis of cost factors, for the purposes of their analysis and determination of actions aimed at their reduction. To analyze the factors on which the level of profitability of the company or business unit depends. Analysis of factors or causes of productivity levels. Analysis of factors or causes of sales levels.

While it may appear to have some similarity to the decision tree, this is only as a graphic resemblance. Firstly, the objective is different, secondly, its use is also different, although it may have some resemblance to the Ishikawa diagram, it differs from it both in its format and in its content and use. Furthermore, its use does not depend on brainstorms or rains, but is purely technical.

His construction

At the extreme right is the objective to be achieved, which is not merely an objective such as "quality", "profitability", but specific values ​​to be achieved, such as 3.4 DPMN (defects per million opportunities), 5% of net profits in relation to sales, 4.8% of RSI (return on investment). Secondly, the primary or fundamental factors on which reaching the desired objective depend are placed to the left of such objective, determining the objective values ​​for each of them.

So yes what it is about is the analysis of diabetes levels for a person, based on their weight, age and other factors, the glucose level will be determined first (for example a limit of 110), then the primary factors are determined on which it depends and which are also critical factors to control and monitor (example: drug-type-milligrams daily; daily calories to consume; number of exercises to perform), then proceed for each of the factors to control and monitor to set sub-factors, such as room temperature, stress levels, among others, which will determine the amount of drug to consume.

In other words, we have an objective to achieve, for this we have to achieve certain previous objectives, and making those objectives a reality implies the analysis and monitoring of other factors on which the primary causes depend.

This interrelation can and should be transferred to matrices, formulas and spreadsheets, in order to analyze what happens when certain changes or alterations occur, and consequently how and in which aspects to respond to achieve the desired objective.

Thus if what we want is to reach a certain unit cost per product, an alteration in the price of one of its inputs will lead to the need to improve productivity levels, reduce the cost of other components by altering the design or changing the input whose price is altered by another cheaper or cheaper.

Although simulations or analysis using spreadsheets have always been done, having a graphic and schematic vision allows a better vision, a better analysis, avoids the neglect of any critical factor, allows to see within the same scheme the numerical relations or ratios, and the effects between them occur or take place.

With said analysis, it is possible in the first instance to develop the course of interdependencies or cause analysis, and then in the opposite direction it is possible to verify the effects produced by a change in factors, allowing changes to be made in order to verify the effects that they produce or they generate in the final result to be achieved. In other words, we first proceed from an analytical development from right to left, and then proceed to monitoring and analysis from left to right.

The graph illustrates the development by which starting from an objective A, it is determined that it depends on the concretion of certain results in factors B, C and D. Then we observe that the concretion of factor B depends on the realization of certain results in terms of B1 and B2. And in the case of B1 it is assumed that a certain value should be recorded in B1a.

Now suppose that an alteration occurs in B1a, this must be immediately reflected in the result of B1, B and therefore of A. In such a circumstance we must take measures aimed at generating changes that make it possible to achieve the objective of achieving result A How it can be observed is essential to determine during the first phase of the analysis which are the controllable factors, of those over which we have no control.

Example: we cannot control the price in the market of a certain raw material, nor the evolution of the markets. But if we can control the ambient temperature in the factory or offices, we can determine the inputs to use, and how to combine them with other components. It is also essential to verify to what extent we can alter certain conditions, for example: controlling the humidity factor through artificial irrigation.

Reverse analysis as a management tool