Process Re-engineering – Workshop 5 (Root Causes)
The Appleton Greene Corporate Training Program (CTP) for Process Re-engineering is provided by Mr. Lam Certified Learning Provider (CLP). Program Specifications: Monthly cost USD$2,500.00; Monthly Workshops 6 hours; Monthly Support 4 hours; Program Duration 12 months; Program orders subject to ongoing availability.
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Learning Provider Profile
Mr. Lam has been in the management consulting industry for over 15 years. He began his career at an investment bank, and then moved into consulting to address a wider variety of sectors and types of projects. He has delivered consulting projects in Europe, North America, and Asia-Pacific.
He has experience with many different industry sectors – including healthcare, energy, consumer goods, retail, banking and financial services, insurance, transportation and logistics, IT, cosmetics and beauty, and hospitality and tourism.
Mr. Lam has delivered numerous types of consulting projects – including business strategy, mergers and acquisitions, process optimization, cost optimization, digital innovation, robotic process automation, data management, operational excellence, due diligence, new product launch, new market entry, and market analysis.
MOST Analysis
Mission Statement
It is often useful to find out why a certain process came into existence in the first place. A “root cause analysis” discovers the primary root causes for a certain process to exist. When re-engineering a process, we simply need to continue to address the root causes, while changing the process to render it more efficient or resource-friendly.
Objectives
01. Identifying The Problem(s): departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
02. Tracing Back: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
03. Techniques: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
04. Tools: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
05. Delays: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
06. Misallocation Of Tasks: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
07. Suboptimal Quality: departmental SWOT analysis; strategy research & development. 1 Month
08. Customer Dissatisfaction: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
09. High Costs: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
10. Fixing The Root Cause(s): departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
11. Testing And Downstream Impacts: departmental SWOT analysis; strategy research & development. Time Allocated: 1 Month
Strategies
01. Identifying The Problem(s): Each individual department head to undertake departmental SWOT analysis; strategy research & development.
02. Tracing Back: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
03. Techniques: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
04. Tools: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
05. Delays: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
06. Misallocation Of Tasks: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
07. Suboptimal Quality: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
08. Customer Dissatisfaction: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
09. High Costs: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
10. Fixing The Root Cause(s): Each individual department head to undertake departmental SWOT analysis; strategy research & development.
11. Testing And Downstream Impacts: Each individual department head to undertake departmental SWOT analysis; strategy research & development.
Tasks
01. Create a task on your calendar, to be completed within the next month, to analyze Identifying The Problem(s).
02. Create a task on your calendar, to be completed within the next month, to analyze Tracing Back.
03. Create a task on your calendar, to be completed within the next month, to analyze Techniques.
04. Create a task on your calendar, to be completed within the next month, to analyze Tools.
05. Create a task on your calendar, to be completed within the next month, to analyze Delays.
06. Create a task on your calendar, to be completed within the next month, to analyze Misallocation Of Tasks.
07. Create a task on your calendar, to be completed within the next month, to analyze Suboptimal Quality.
08. Create a task on your calendar, to be completed within the next month, to analyze Customer Dissatisfaction.
09. Create a task on your calendar, to be completed within the next month, to analyze High Costs.
10. Create a task on your calendar, to be completed within the next month, to analyze Fixing The Root Cause(s).
11. Create a task on your calendar, to be completed within the next month, to analyze Testing And Downstream Impacts.
Introduction
Root Cause Analysis: The Deep Dive Into Solving Complex Problems
Every captivating mystery begins with a question: Why? Why did something happen? Why did a carefully planned project fail? Why is a system not performing as expected? Like a detective embarking on an enigma, business professionals armed with Root Cause Analysis (RCA) seek to unearth the deeper truths hiding beneath the surface of their challenges.
The Domino Effect in Real-world Systems
Consider the domino analogy again. Every piece, when lined up in succession, relies on the precision of its predecessors and successors to create a seamless chain of events. This mirrors the complexities of our business ecosystems. An action or decision in one department or process can cascade – either positively or negatively – across the entire organization. But what happens if a domino is misaligned? The entire sequence gets disrupted. Root Cause Analysis seeks to not only identify the misaligned domino but to understand why it deviated from its intended position in the first place.
In business operations, the misalignment could be due to various reasons: a communication breakdown, a faulty component, a gap in training, or even external factors beyond the organization’s control. Identifying the ‘fallen domino’ is just the first step; RCA dives deeper into understanding the multifaceted reasons behind its displacement.
Beyond Symptoms: The True Nature of Problems
When faced with a problem, our innate response is often to deal with its immediate manifestations. If a software system crashes, the immediate reaction might be to restart it. If a product line faces declining sales, a company might push for more aggressive marketing. These solutions, however, might only address the symptoms, leaving the underlying disease untreated.
RCA is akin to a medical diagnostic process. When a patient exhibits symptoms, a good physician does not just treat the symptoms; they conduct tests, probe into the patient’s history, and ask detailed questions to diagnose the root ailment. Similarly, RCA is not content with mere surface-level observations. It probes, questions, and challenges assumptions to reveal the deeper systemic issues that are at play.
The Iceberg Principle
An apt metaphor for understanding RCA’s approach is the iceberg principle. When we see an iceberg, what’s visible above the waterline is often just a small fraction of its entire mass. The vast bulk of the iceberg remains submerged and hidden from view. Likewise, in business challenges, the apparent issues—the ones that are evident and immediate—are often just the tip of the iceberg. The larger, more complex causes remain submerged in layers of processes, decisions, and systems. RCA is the expedition to uncover and understand this submerged mass.
In conclusion, Root Cause Analysis is not merely about identifying and rectifying problems; it’s a systematic journey into the very heart of issues. It demands a shift from reactive problem-solving to proactive problem understanding. This deep dive is vital because, in today’s intricate business landscape, superficial solutions can only offer temporary relief. For long-term success and systemic improvement, one must venture beneath the surface, navigate the complexities, and address challenges at their core.
What’s Beneath the Surface? Delving Deep into the Undercurrents of Challenges
At face value, many problems present themselves as singular, isolated incidents. A manufacturing error here, a miscommunication there, a sudden drop in sales, or an unanticipated system failure. While it may be tempting to view these incidents as ‘one-off’ anomalies, the truth often lies deeper, embedded in the intricate web of systemic operations and processes that every organization upholds. To truly resolve and prevent these issues, it’s imperative to dive beneath the apparent surface and explore the undercurrents that have led to the situation at hand.
The Allure of Immediate Solutions
In our fast-paced business world, there’s undeniable pressure to find quick fixes. Immediate solutions offer the allure of rapid results, providing temporary relief and the satisfaction of “problem solved.” However, just as putting a band-aid on a deep wound may hide the injury but does nothing for the internal damage, addressing only the visible symptoms of a problem in business can leave the underlying causes festering.
Consider the tech world, for instance. When a popular app crashes, developers might roll out a quick patch to get it back online. Users can access the app again, and on the surface, it seems the problem is fixed. But what if the real issue is a deep-seated code vulnerability? Without addressing this root problem, the app remains susceptible to future crashes or, worse, security breaches.
The Complexity of Interconnected Systems
Modern businesses operate as vast, interconnected networks. Every department, team, and individual is a cog in a larger machine, and the functioning of one often directly influences the performance of others. This interdependence means that a hiccup in one area can ripple out, creating waves of disruption in seemingly unrelated sectors.
For instance, if a procurement team opts for a cheaper raw material to cut costs, this decision might initially seem beneficial for the company’s financial health. However, beneath the surface, this change could affect product quality, leading to increased returns, negative customer feedback, strained relations with retailers, and ultimately, a tarnished brand reputation. The initial decision, while appearing beneficial on the surface, might carry significant hidden implications.
The Role of Organizational Culture
One crucial factor that often lies beneath the surface is the organizational culture. The values, beliefs, and norms upheld by a company can significantly influence its operations. If a culture prioritizes short-term gains over long-term sustainability, it might overlook deep-seated problems in favor of immediate fixes. On the other hand, a culture that encourages transparency, continuous learning, and responsibility will be more inclined to embrace methods like Root Cause Analysis to truly understand and address challenges.
Unearthing the Hidden Layers
Just as an archaeologist digs through layers of earth to uncover relics of bygone eras, business leaders and professionals need to sift through layers of data, behaviors, decisions, and processes to get to the heart of problems. This excavation isn’t always straightforward. It requires patience, a keen analytical mind, and often, the courage to challenge existing paradigms and confront uncomfortable truths.
In essence, when we ask, “What’s beneath the surface?”, we’re not just seeking the immediate causes of a problem. We’re embarking on a holistic journey to understand the nuances, the histories, the decisions, and the myriad factors that converged to create the challenge at hand. Only by truly understanding these depths can we hope to craft solutions that are effective, lasting, and transformative.
The Anatomy of RCA: Tools and Techniques
In the dynamic realm of business, challenges can emerge from any corner. From operational hiccups to strategic misalignments, the sources of these challenges are numerous and often interlinked. Root Cause Analysis (RCA) provides the precision tools to dissect these challenges, offering a detailed exploration of their origins and intricacies. As the framework of RCA expanded, a plethora of tools and techniques were developed to cater to diverse problem-solving needs. Let’s dive deeper into some of the most widely used RCA methodologies:
1. The 5 Whys
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• Application: Suppose a production line suddenly stops. The first “why” might reveal a machine failure. The second “why” could point to overheating. The subsequent “whys” might uncover insufficient maintenance, lack of training, or even systemic issues in scheduling or resource allocation.
• Strength: It’s straightforward and doesn’t require statistical analysis.
• Limitation: Its simplicity might not suit complex scenarios with multiple interlinked causes.
2. Fishbone Diagram (Ishikawa or Cause-and-Effect Diagram)
• Concept: Envisioned by Kaoru Ishikawa, this diagram resembles a fish’s skeleton, with the problem (or effect) as the head