Justify your projects with the multimoment analysis

Increasing the efficiency of a company is one of the most important tasks. After all, only the company that can economically develop, produce and market its products or services has a future in our globally networked world. If you are involved in projects to increase the efficiency of your company, you will certainly have already been confronted with one of the main problems: Determining ROI - return on investment. In this article, learn how to use multimoment analysis to achieve statistical validation and thus justification for your project.

ROI is defined as the difference in net cash flow of an actual state versus a target state. As part of an efficiency improvement project, the time spent performing the main processes must inevitably be applied to the net cash flow. Put simply, you must be able to prove how high the effort for a process is today - and how high the effort will be after the project has been implemented. Only if you can provide tangible values for both parameters can you justify a project investment to your superiors. This is exactly where the multi-moment analysis comes into play.

Multimoment analysis provides you with statistically reliable values for the two parameters. First, you need to perform an analysis of all the main processes that exist in the plant. If multimoment analysis is used, all employees are "automatically" involved in the data acquisition process during the implementation phase - in a simple, intuitive way that has minimal impact on the workflow. Over a defined period of time, you obtain sufficient meaningful data "quite incidentally" - and can make highly detailed and statistically justified statements about effort and time commitment for processes or process steps.

The result is a comprehensive picture of the current status - and knowledge about all process steps and their individual effort. Based on this data, you can now model the target state and estimate the effort for the new process very precisely. Thus, you can substantiate the parameters mentioned at the beginning in the area of ROI with statistical support - and create an optimal basis for the decision in favor of your project.