# Gap Analysis

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Gap Analysis is a technique used to identify gaps between a current state and a targeted one. _{ }

To create a gap analysis:

- Click
**Transform**>**Gap Analysis**in the menu. - Enter
**Gap Variable name**. - Select
**Type**(Maxime or Minimize). - Select
**Record set**. - Select the
**Index**to be used for the analysis. Usually the time variable is set by default. - Select the
**Variable**, if required select the**Variable****sets**. - Select the
**Factor**, if required. - Enter
**Target value**, numeric value. - Click
**Save**.

Example: Calculate the yearly savings potential based on a target value for the variable Profit €/h.

- Find the target value for the variable:
- Create an histogram to understand the distribution.
- Switch to Advanced tab and check the box "Show Statistics".

The target value chosen is 3500 USD/h (close to the average value 3461 USD/h)

2. Create a Gap analysis to maximize the savings using a target value of Profit of 3500 using as and **Index** the time variable and as a **Variable** the KPI to be analysed.

Gap Analysis Type

*Maximize *means that the Gap is under the target.

*Minimize *means that Gap is above the target.

3. Create a Cusum to cumulate the savings over a period of time. In the CUSUM Variable editor page the **Index** and the **Variable** are automatically selected, respectively the time variable and the Gap Variable Name. Click on **Save** to compute the CUSUM function.

The result can be seen on the top of the resulting table :

4. Create a Trend, using **More Actions** →** Create Trend**. In the Trend editor the **X** and **Y** axis are automatically selected, respectively time variable and CUSUM_Variable Name. In Advanced tab check the box "Fill curves" to color the area between the curve and X - Y' axis.

##### Calculating the yearly savings potential:

Using the basic statistics given below the Trend for the *CUSUM-**GAP_Profit**/hr *function, assess the yearly savings potential based on a target value of 3500 €/hr.

Number of records (production hours) = **6475**

Maximum value for the CUSUM function = **300 751 USD**

The ratio of these two numbers gives a hourly savings potential equal to** 46.45 UDS/hr**.

Based on the assumption that the process is operating 24/7, with 2 weeks shutdown for yearly maintenance, the yearly savings potential is around **399 098 ****USD**.

Factor

**Factor** is the factor by which we multiple the gap to calculate an absolute rather than relative gap value. This is often used for specific value (unit of value/unit of production) to calculate the value gap rather than specific value gap.

In this case, the factor equals “1” because data sampling period is 1 hour.