The core concept behind Qualitative Analysis is that it is an approach that focuses on the production of specific items, which makes it more efficient for organizations. This concept was developed by the American management pioneers namely W. Edwards Deming and Robert Kiyosaki. These two recognized the efficiency of the production process that results in measurable quantitative results (Kiyosaki & Deming, 1992). Qualitative Analysis is used by many manufacturing organizations as a means of improving the efficiency of the supply chain. This is because of the fact that goods are sold in bulk and they have to be processed efficiently in order to yield profit.
Qualitative Analysis uses indirect observation of production processes that is also referred to as deductive or qualitative reasoning. While traditional statistical methods such as logistic regression and optimization can be used in cases where a clear understanding of the data is not available, qualitative analysis utilizes indirect observation and a structured questionnaire to derive statistical estimates based on the available data. In other words, it is the traditional way of producing quality estimates based on statistical data without the use of formulas and mathematical algorithms.
With this method, organizations can dive into the core of the matter and find out the cause of slowdowns, breakdowns, rework, and excess inventory. They can also delve deeper into the business factors that are affecting the production process and find out the reason behind customer complaints and why these are being addressed. This makes qualitative analysis a very good methodology because it can provide tangible data that the organization can actually use to solve problems and improve processes. On the whole, qualitative analysis and its associated technologies, tools, and techniques make it easier for organizations to dive deeper into the details of the raw materials, work processes, and customer needs and help them sort out the problems that are slowing down the production process or causing financial loss.