ABSTRACT
In this chapter, we discuss the two basic reasons to perform an Opportunity Analysis or OA. The first is to make a legitimate business case to analyze one event versus another. An OA demonstrates with dollars the actual annual losses for each identified chronic failure. It allows the analyst to speak in the “language of business” or ROI.
The second compelling reason is to focus the organization on what the most significant events really are so that quantum leaps in productivity can be realized.
Experience has shown the Pareto principle works with such events. It goes something like this: 20% or less of the undesirable events we uncover by conducting an in-depth OA will represent approximately 80% of the losses for that system. This is often called the 80/20 rule. The same is true for a Failure Modes and Effects Analysis (FMEA) when assessing risk.
