What is root cause analysis?

- Have you ever had a business problem that you just can't seem to fix? No matter how you patch it, or what personnel changes you make, it just never goes away? Well, let me tell you a story. One of my clients had an issue with inventory. They never seemed to know what they really had in stock. So, they couldn't deliver products to their customers on time. They blamed it on a people problem, and every month performed a cycle count, a physical count of components, and used that information to update their inventory system. But the problem did not go away. Customers continued to complain, and some switched to their competitor. The company didn't fix the problem because they never found the root cause. They blamed it on people and tried to patch the numbers, but without finding the root cause they were never going to fix the problem. That's where root cause analysis comes in. A root cause is the most fundamental cause, or causes of a problem that can be identified, and that we have control over to fix so that when it gets fixed the problem will not recur, or will have a much lower likelihood to recur. A root cause analysis is based on objective analysis, facts and data, and it brings hidden issues to the surface so that you can see them and deal with them. Without seeing a cause it's difficult to deal effectively with a problem. Patches are only temporarily fixes, but by determining and addressing the root cause of your problem you can be confident that your solutions will be more effective, and longer lasting. And, when used correctly, the root cause analysis methodology will help you prevent the typical blame game that occurs when a problem is encountered. This is helpful because you need people from different areas to participate in the analysis. And they'll be more willing when they know it's not about placing blame. Think of the amount of time and resources you've wasted putting Band-Aids on a problem. How much time did my client waste performing cycle counts, and blaming people, and all without solving the problem? But when they changed their approach, and put some of that time into root cause analysis, they were able to make permanent corrections that solved the problem. Spending time on a root cause analysis allows you to pinpoint the causes of your problem, and address them in the right order to actually fix the problem, and not just patch it. We live in a very competitive business environment. So it's critical to use time and resources as effectively and efficiently as possible. Root cause analysis is an investment that will keep your customers happy, and give your organization a competitive advantage.