Case

Question

Hi, I took part in a interview and there was only one question:

1. One company has two factories one located in Italy and another one in Germany. Each factory has the same equipment but the equipment in Italy has a much better performance than in Germany. What are the possible factors that lead to this difference?

I got the feedback that I should have listed more causes. How would you approach this case and could you provide the reasons that you would mention? Framework (People, process, Perfoamcen, 6M?)?

Answer 1

Hello,I would start by clarifying what performance exactly means, as this has a huge impact on your approach.

One way of looking at it could be to measure performance as the output of good product per hour. In that case you can follow the OEE definition to structure your analysis at the highest level:

Potential production time (calendar year)
Minus availability losses (breakdowns, waiting time, etc.)
Minus performance losses (minor stops, lower speed, etc.)
Minus quality losses (scrap or re-work product)
Equals the output of good product

You can use this structure as the first level, after which you can easily add a second layer with drivers for each of the losses.

Hope this helps!