Minimizing the number of issues analyzed in the 8D root cause analysis of IBM business services Inc. at Libis, Quezon City

Date

4-2011

Degree

Bachelor of Science in Industrial Engineering

College

College of Engineering and Agro-Industrial Technology (CEAT)

Adviser/Committee Chair

Mikel Angelo B. Yap

Committee Member

Diana Marie R. De Silva, Marc Immanuel G. Isip

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Abstract

IBM Business Services (IBS) Incorporated provides Business Transformation Outsourcing (BTO)services to various companies. The service includes recording and solving issues for the company using the Eight Discipline Root Cause Analysis (8D RCA). As an extension by the tear 2007, IBM implemented the process to all internal issues of the company. The Center Quality Management-Quality Management System (CQM-QMS) is responsible for carrying out the process throughout the company. Using Total Quality Management tools, a 105.53% increase in the issue count was seen from 2008 to 2009. This implies that the total number of issues for 2009 doubled relative to that of 2008. IBS has expected that the increase would be 55.56%, and based on this value, the number of analysts assigned for the internal issues of IBM was established. CQM-QMS assigned ten employees before the start of the analysis period and by midyear, five more analysts were hired i order to cope with the number of issues; this caused an additional ₱500,000. The percent increase in issue count alarmed IBS; because while having the same source of issues from the previous analysis periods, the increase was exceptionally high. IBS does not have a control over the number of issues arising, but the company has a control over the issues that must undergo the 8D RCA process. Rather than forecasting this study focused on providing controls for determining the issues subject to the 8D RCA process. The use of statistical inferences proved the claims of IBS, regarding their process being complaint with the deadlines, to be inconsistent. The 8D RCA process categorized each issue into three severity levels, which depends on the issue's impact to the company or department: Severity 1(high impact), Severity 2 (medium impact) and Severity 3 (minimal impact). The statistical process charts for the number of day covered (issue period) of an issue per severity level showed that the 8D RCA process is not in control. Most issue periods for Severity 1 and Severity 2 levels are higher than the standards set by IBS. For the third level, there were no standards set, which explains why there are points at extremely high value. After all initial analysis and interpretation of data and charts, the main problem discovered is the high percent increase in the issue counts recorded for year 2009. The Ishikawa Diagram and the Corresponding CNX Analysis clarified the cause of the main problem. The caused identified point to inconsistencies in the 8D RCA process: (1) inclusion of petty issues, (2) processing recurring issues, (3) no information dissemination to departments affected by the issue, and (4) yearly analysis of all issues. The next step taken was formulation of alternative of alternative solutions aimed to address the root causes identified. Together with the RCA team, each alternative solution were applied to the database of 2009 issues. The results of each alternative are an integral part in the evaluation process. To come up with recommendations, the IBS RCA team evaluated all the alternative solutions against a set of criteria that the team created. The alternative solution that includes the detection of recurring issues and rejection of petty led to a 33.91% reduction in issue, as it was tested for year 2009. The team evaluated this alternative solution as the best among all other alternatives. With this alternative, the issue count for 2009 decreased to 1031, which is below the forecasted (1089) and recorded (1560) issue counts for 2009. Therefore, it is recommended to implement the detection of recurring issues and the exclusion of petty issues for the 8D RCA process the company uses.

Language

English

LC Subject

Industry analysis

Location

UPLB College of Engineering and Agro-Industrial Technology (CEAT)

Call Number

LG 993.5 2011 E66 B47

Document Type

Thesis

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