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What is Root Cause Analysis, and How to Apply it in Your Business

5 Easy Ways to Boost Business Sales and Revenue

If a problem has arisen at work, what are the steps that you take to fix the issue? We hope that you are using root cause analysis – but if you have no idea what that is, or how it is applicable in your business, then we are here to help you out. Read on to learn more about root cause analysis and how you can apply it in your business!

What is root cause analysis?

Root cause analysis (RCA) is a problem-solving framework for identifying the root causes of problems, understanding why it happened, and taking measures to prevent the same problem from happening again. 

Is it important?

RCA can be considered crucial in solving business problems, particularly as it attempts to solve the problem as a whole, and not just its symptoms. As a result, the same problem is less likely to happen again, and your business can operate as normal without fears of the problem popping up repeatedly. 

Whilst it may be more convenient to fix individual symptoms of the problem, without actually treating its root cause, you will probably encounter the exact same problem multiple times over which in turn will lead you to focus less on important tasks, decreasing business efficiency. 

Therefore, RCA is important in understanding what caused a problem, and what you can learn from it to help you systematically prevent future problems. 

How to apply it in your business

Now you may be wondering, ‘How do I apply RCA in my business?’ –  an easy way to look at RCA is the following steps:

  1. Identify the problem
  2. Gather all aspects of the problem
  3. Identify all potential root causes of the problem
  4. Test the root causes (using the RCA methods below)
  5. Develop an action plan or solution to prevent the same issues

There are different methods and principles that you can use to apply RCA , so here we have listed a few ways you can apply RCA in your business:

The 5 Whys – 

The 5 whys consists of 5 questions – asking, for instance:

  1. Why is the machine not working? – The machine is dead.
  2. Why is the machine dead? – The machine malfunctioned.
  3. Why did it malfunction? – There was a problem with the wires.
  4. Why was there a problem with the wires? – They weren’t wired correctly.
  5. Why weren’t they wired correctly? – Because we rushed and didn’t hire appropriate engineers.

So, now you can see that the underlying problem in this example is that you didn’t hire the appropriate engineers for the task at hand. In the future, this can thus be prevented by hiring suitable engineers for the machines. 

RCA software

Perhaps the simplest solution is to implement RCA software, which can be found in Enterprise Resource Planning (ERP) platforms like Xelix. These platforms can perform RCA for you, automating the process, and saving you time from manually having to do it.

Fishbone diagram/Ishikawa diagram – 

Similar to the ‘5 Whys’, but a visual representation, this is recommended for visual learners. It maps cause and effect in a fishbone diagram, with the spine in the middle representing the problem, and the ribs branching out representing the possible root causes.

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