Root Cause Analysis Understood

“Root Cause Analysis is immensely helpful in determining and eliminating the core problem in any business.”

Every business organization needs to find out its problems and tackle them suitably. The most important step in this regard is to find out the root cause of the problem rather than tinker with the symptoms or effects of the main problem. Root Cause Analysis is immensely helpful in determining and eliminating the core problem in any business.

For example, your company is facing the problem of reduced profits. A close examination reveals that this is in fact not the main problem but the symptom of some serious trouble in your company. To find out the main cause a step-by-step rigorous procedure is required.

The first thing is to identify the wrongs that are happening in your company. After that the main causes as to why these wrongs have taken place are to be ascertained and then a solution is to be found out so that such problems don’t occur again in future.

You can employ Root Cause Analysis in a number of ways to your aid. For example, you can compare a previous similar process (that was successful) to the faulty process of the present time. Or you can deal with the process or problem at hand chronologically without leaving even a single date that contributed to the process.

You can also take help of graphics like Tree Diagrams so that you get a clear overview of the what, where and why of the thing that went wrong.
Another method is the cause and effect diagram. All the factors that lead to a particular process should be meticulously categorized. Not even a single category should be overlooked or treaded with carelessness.

It has been seen that companies tend to overlook the environment of the company and the society around them and simply concentrate on the methods and processes of production. This is a wrong approach and often it mars the accurate results of root cause analysis.

Mind you, there is no place for ‘instant solutions’ in root cause analysis. There may be certain missing links in a process that may have so far escaped everybody’s attention. These often turn out to be the main culprits. You have to make painstaking efforts to reach at and rectify the main problem.

Author - DeeKay

Tags - Finance, Economy

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