Resolving the root cause

The Root of a Problem may be More Difficult to Nail Down, but the Extra Time and Effort is Worth It

By Bob Jones -- Industrial Distribution, 9/1/2005

Everyone seems to know the definition of "root cause." It's the root of a problem, i.e., where it originates. So when faced with a problem, why don't business people resolve the root rather than just bandage it?

The answer is too simple—it takes time and effort. That's it.

Shocked? Perplexed? You shouldn't be. In the current climate of slashing operational costs and downsizing, there is precious little time to analyze and develop an operation. It usually only happens when something forces the issue, such as, "We're out of space."

Even here, the root cause may not be addressed. Is the space problem caused by sales growth, item proliferation, obsolesce, and increased safety stock, due to poor vendor performance, or inventory integrity? Depending on your answer, the solutions are vastly different.

Consider this example: a customer calls and says he has received a wrong item. But rather than finding the root to the problem, additional inspectors are put in place.

Inventory counts off? Fine. Rather than understanding why, we'll complete physical inventories three and four times a year.

Receiving errors? More inspections.

Sometimes investing in a blanket approach, such as installing a warehouse management system, and not defining the goals for the implementation, is the problem. This is the quintessential reason that WMS implementations fail. They are considered "silver bullets," thought to have the ability to fix all problems, seen and unseen, by simply turning them on. In reality, they are only a tool, albeit very powerful ones.

Of course, if you understand your problems and where the root lies, a WMS system can help you resolve those issues effectively, efficiently and permanently.

However, minus that knowledge, what ends up happening is labor costs skyrocket, inventory never seems to get "nailed down," salespeople complain, customers complain, and the story goes on and on.

How many problem fixes have you put in place, only to see the problem resurface at a later date?

So why is finding that root so time consuming and difficult to define?

Because, like many things, the harder you search for it, the more it becomes worth it.

First things first: get your measuring system up and running. Secondly, rank the issues you face. Next, assemble a team that will dig into the root cause of the issues. Finally, design and implement the solution.

These seemingly simple steps can be the difference between a satisfied customer and an irate one (or worse yet, one who disappears); between being profitable or hemorrhaging money; or between thriving and closing your doors.

You can't find a solution without understanding the problem. Find the problem, fix it permanently and watch your business thrive.