Root Cause Analysis
A thorough analysis of our metrics for the last couple of years has shown that our inventory turns are currently trending behind other retailers and similar business types in the industry. As an organization we must look internally to identify the business processes or systemic limitations occurring that limit our ability to remain competitive in our market. To achieve this result we will conduct a root cause analysis (RCA) to aid in identifying the inefficiencies that exist within our supply chain. To facilitate this process there are many different types of tools available to organizations, including the 5 Why method, Fault Tree Analysis, Interrelation Diagrams, Ishikawa Diagrams (Fishbone, Cause and Effect) and many others. As we began our analysis one of the methods we used was the 5 why process; this technique begins with the incident itself and the team continues asking “Why?” until they arrive at what is believed to be the root cause. Ideally the end result of utilizing sound root cause analysis practices should be effective corrective action. The end result of effective corrective action should be improved processes, and ultimately improved customer satisfaction. Regardless of the nonconformity’s source, organizations that only take action on the incidents are bound to repeat the same ineffective corrective actions over and over again. By applying good investigative tools and taking the appropriate action in regards to the causes of problems, repeat issues can become a thing of the past. As we conducted our 5 why analysis process the below questions allowed us to drill down into some of the impeding issues from the viewpoint of our Divisional Managers.
5 Why Analysis:
Question 1. Why do you feel our inventory turns currently fall behind other major retailers and similar business types? We are unable to make timely decisions based on the information we have available in our business systems. Question 2. Why are...
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