Tool 123: Opportunity Analysis

AKA

N/A

Classification

Evaluating/Selecting (ES)

Tool description

The opportunity analysis is an effective tool for a team to evaluate and select the most preferred opportunity among many. Similar to criteria filtering, identified improvement opportunities are rated against criteria such as organizational importance, feasibility of completion, and potential benefit against resources needed to implement the top-rated choice.

Typical application

• To identify and plan for implementing the most preferred improvement opportunity.

• To provide a structured approach for teams to select high potential change.

• To determine and use criteria for profitable resource allocation.

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

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

links to other tools

before

• Cluster Analysis

• Consensus Decision Making

• Idea Advocate

• Buzz Group

• Checkerboard Method

after

• Risk Space Analysis

• What-If Analysis

• Cost-Benefit Analysis

• Sticking Dots

• Run-It By

Notes and key points

• Legend: (H) = High, 3 points; (M) = Medium, 2 points; (L) = Low, 1 point.

• Overall highest-rated improvement opportunity should be the top candidate for completion.

Step-by-step procedure

• STEP 1 As a first step, the team facilitator introduces the opportunity analysis process. Rating criteria and final ranking is also discussed.

• STEP 2 A prepared flip chart listing all of the opportunities is shown for the team to review and discuss.

• STEP 3 Next, all criteria is clarified in order to have full understanding for the rating of listed improvement opportunities. See example Reduction of Defects per Unit (DPU) Level.

• STEP 4 The team evaluates (rates) each opportunity, reaching consensus in the process.

• STEP 5 A final ranking occurs and the top-rated improvement opportunity is identified.

• STEP 6 The final chart is dated and next steps are briefly discussed.

Example of tool application

Reduction of Defects Per Unit (DPU) Level