Heuristic Analysis Procedure

Phase 1: Problem Defination and planning

1. Feasibility Assessment
Situational analysis(to providesenior management with the best
understanding of the strengths and weaknesses of the existing
capabilities and includes internal review, market assessment and
competitive evaluation and Technology Assessment)
Supporting logic development ( evaluates current procedures and
practices and identifies areas with improvement potential and includes
clear plans for potential redesign alterriatrves)
Cost benefit estimate ( Benefits should be caterogised in terms of
services improve ments and cost reduction)
2. Project Planning:
Statement of objectives
Statement of contraints
Measurement standards (includes definations of how cost components
are calculated and also revelant customers service measures and
method of calculation.
Analysis procedures
Project work plan (a project work plan must be determined and the
resources and time requied for completetion identified)
Phase 2: Data Collection and analysis
1. Assumptions And Data collection:
Define analysis approach and techniques (most common techniques
are analytical, simulation and optimization)
Define and review assumptions ( Includes Business assumptions;
market consumer, and product trends and competitive actions,
Management assumptions alternative distribution facilities,
transport modes, logistics processes and fixed and variable costs
and Analysis assumptions defines the constraints and limitations
that must be included to fit the problem to the analysis technique)
Identify data resources
Collect Validation Data ( The objective of validation is to increase
management credibility regarding the analysis process and to
ensure that the results of the analysis accurately reflects the reality.
Comparison should focus on historical activity and expense levels)

2. Analysis
Define analysis questions ( involves defining specific analysis
questions concerning alternatives and the range of acceptable
uncertainty)
Complete and validate baseline analysis
Complete alternative analysis
Complete sensitivity analysis
Phase 3 Recommendations and Implementations
1. Development of Recommendations
Identify the best alternatives
Evaluates Costs and Benefits
Develop a Risk Appraisal
Develop Presentation
2. Implementation
Define Implementation plan
Schedule Implementation
Define acceptance Criteria
Implement