The purpose of Kanri business model is to provide a management system based on several attributes (variables) that are related. Based on the information on these attributes a multivariate measurement scale is developed to measure the distances from a target or reference group. The key aspect of Kanri distance is that it will take into account the correlations between the variables into the account.
After developing and validating the measurement scale, a root cause analysis (RCA) is performed on individual basis. In RCA, we calculate contribution ratios (CRs) of the attributes. This will help us to focus on those attributes that have highest impact through statistical process control (SPC) charts.
The detailed steps in the Kanri approach are given below:
- Define the target (healthy) group and all health attributes for consideration.
- Development of multivariate measurement scale with target group as the reference.
- Calculate each participant’s distance from target by running data through KDC.
- Perform individual diagnostic and identify contributing variables for each participant
The Kanri distance emphasis on correlations is explained with Figure 1, in which only two variables, height and weight are considered. In this figure, the elliptical region corresponds to the KDC reference group of healthy people, from the center of which the distances are measured on the measurement scale. From Figure 1, it is clear that both Sam and Raj will be considered to be normal when we look at the two variables independently. Both have their height and weight levels within the range of the rectangle (gray area). However, when the correlation between the two variables is taken into account, both men are outside of the normal or reference group (elliptical region). This is very important aspect of the Kanri distance. In addition, with Kanri distances we can quantitatively determine how far these individuals are outside of the reference group. The KDC measures the degree of abnormality of individual people or products with respect to the desired reference group. In this figure it can be clearly seen that Raj is less abnormal than Sam. This type of information will help to provide the better treatment for each person.