Chapter 14: E I Q A n a l y s i s Q & A

Q1What is the difference between ABC analysis and EIQ analysis?
A1
General ABC analysis in logistics focuses on variety and quantity. In contrast, EIQ analysis is a 3D analysis that adds Order Entry (customer count) to variety and quantity. It provides a comprehensive analysis by combining ABC with frequency and PCB analysis. PCB analysis, in particular, is indispensable for distribution center system planning.
Q2How does EIQ analysis help in distribution center planning or improvement?
A2
Distribution center system planning must be based on data, not just intuition. EIQ analysis provides the numerical data necessary for effective planning.
Q3Why perform frequency analysis?
A3
Frequency analysis reveals information that cannot be understood through ABC analysis alone. Specifically, EN (Lines) and IK (Item overlap) frequency analyses are highly effective for center planning.
Q4Can EIQ analysis be performed on a PC?
A4
It can be done using Excel for smaller data volumes or Access for larger datasets.
Q5Can EIQ analysis be used for other purposes?
A5
Since it is a fundamental logistics analysis, it can be applied to various issues like inventory reduction, logistics cost forecasting, productivity, and center operational methods.
Q6Daily order data always varies. How many days should be analyzed?
A6
Please analyze one day's worth of EIQ data and one month's worth of aggregated EIQ data. This is usually sufficient to understand the general system requirements.
Q7How can a single day's analysis be representative if data changes every day?
A7
It is similar to a "Kintaro-ame" candy—though each cross-section looks different, the essential "face" remains the same. This is a property of fractals (self-similarity). The EIQ method is a new approach that plans systems based on this fractal nature of distribution center characteristics.
Q8EIQ analysis seems common sense. Is there anything special about it?
A8
While the analysis content may seem standard, the EIQ method provides the specific "know-how" on how to read the data and apply it to distribution center planning.
Q9Why is it not more widely known?
A9
  • Many people mistakenly think it is just standard ABC analysis.
  • Frequency analysis is often avoided because it seems tedious (though it is easy with Excel).
  • Inability to utilize results: Data analysis is about looking, reading, and thinking. Analysis is useless if you don't know how to apply it. Many struggle with the initial application; please refer to the case studies for guidance.