RCA Program Dashboard

In the dynamic landscape of business operations, the pursuit of excellence is a perpetual journey. One of the fundamental tools in this journey is Root Cause Analysis (RCA), a systematic process for identifying the underlying causes of problems or incidents within an organization. But what exactly is RCA, and how does it intersect with the broader concept of Continuous Improvement?

Understanding Root Cause Analysis (RCA)

RCA is a structured approach aimed at uncovering the root causes behind undesirable events or issues. It goes beyond addressing symptoms to delve into the underlying factors that contribute to a problem's occurrence. RCA typically involves several steps, including problem identification, data collection, analysis, identifying root causes, and implementing corrective actions to prevent recurrence.

Continuous Improvement: A Culture of Progress

Continuous Improvement is a philosophy focused on making incremental enhancements to processes, products, or services over time. It entails an ongoing commitment to innovation, efficiency, and effectiveness within an organization. Continuous Improvement fosters a culture where every individual is empowered to identify areas for improvement and contribute to positive change.

Correlating RCA with Continuous Improvement

RCA and Continuous Improvement are intertwined in their pursuit of organizational excellence. RCA serves as a crucial tool within the framework of Continuous Improvement by pinpointing areas ripe for enhancement. By systematically identifying and addressing root causes of problems, RCA provides valuable insights that fuel the Continuous Improvement engine. For instance, if a manufacturing facility experiences recurrent equipment failures leading to downtime, conducting an RCA can uncover underlying issues such as inadequate maintenance procedures or substandard equipment quality. Addressing these root causes not only resolves immediate concerns but also lays the groundwork for long-term process enhancements.

Key Benefits of RCA to Continuous Improvement

Preventive Action: By identifying and addressing root causes, RCA helps prevent the recurrence of problems, leading to more stable and reliable processes.
Data-Driven Decision Making: RCA relies on data and evidence to drive insights, enabling informed decision-making in the pursuit of Continuous Improvement.
Enhanced Efficiency: By streamlining processes and eliminating inefficiencies, RCA contributes to overall operational efficiency and productivity gains.
Cultural Shift: Implementing RCA fosters a culture of accountability and learning within an organization, where continuous learning and improvement become ingrained values.
Customer Satisfaction: Continuous Improvement fueled by RCA results in higher quality products or services, ultimately leading to increased customer satisfaction and loyalty.

In conclusion, Root Cause Analysis is a linchpin in the broader strategy of Continuous Improvement, providing organizations with the insights and tools needed to drive sustainable growth and excellence. By integrating RCA into their operations, businesses can unlock the full potential of Continuous Improvement and embark on a journey of ongoing advancement and success.

Like any other process, your root cause analysis (RCA) program requires periodic reporting to help you stay on track. Developing an RCA Program Dashboard can help. Here are some ideas:

RCA Volume

For a given period, track the following:

RCAs Opened
RCAs Closed
RCAs In Process

The number of RCAs opened and RCAs closed span the entire period. In some cases, RCAs closed will have been opened in previous periods. And some of the RCAs opened in the current period will still be in process at the end, to be closed in a future period. But the “closing ratio” of opens to closes provides insight into resources required. For instance, if you are opening more RCAs than are being closed, you may have a resource constraint. Examining the closing ratio trend over time will tell you whether your caseload is a temporary anomaly, or a new-normal, thereby providing insight into staffing requirements. The number of RCAs in Process provides a point-in-time look at what is currently in the pipeline and provides an indication of throughput velocity. For instance, if you opened 15 RCAs in a month, closed 18 RCAs, and have a current in-process count of 50 RCAs, you will want to take a closer look at what is (or is not) going on!

Example RCA Volume

	Q3 2017	Q4 2017	Change
RCAs Opened	14	27	+13
RCAs Closed	8	26	+14
RCAs in Progress, end of Q4	9	16	+7

Return on Investment (ROI)

We track three numbers to report ROI:

Problem Impact: The total financial impact of all problems.
Cost of Solutions: The total cost of all approved solutions.
Cost of Investigation: The total cost of investigating problems.

These figures should be documented for each RCA. For periodic reporting, aggregate all RCAs closed during the period together and compare. It should look something like this graph:

One way to read this graph:

“We experienced $5,500,000 in losses in Q4, we authorized an additional $300,000 to mitigate future similar losses, and we spent $50,000 investigating to make sure that our solutions were really the best things we could do.”

Be sure to include qualitative information as well. Some problems have negative impacts that don’t translate into money. These should also be reported. An example would be something like this: “After spending $25,000 establishing the ‘New Employee Mentor’ program, all employees and supervisors report a noticeable and positive impact on morale.”

Event Location, Type Frequency, and Impact

It’s important to document where events occurred as well as frequency and severity. The following table is one way to report this information:

Locations (by impact)

Location	Count	Impact
Western Region	12	$3,250,000
Central Region	8	$750,000
Eastern Region	6	$1,000,000
Total	26	$5,500,000

You can do the same with event Type:

Types (by impact)

Type	Count	Impact
Operations	10	$3,850,000
Quality	8	$750,000
EHS	4	$1,000,000
Reliability/Maintenance	2	$450,000
Information Technology	2	$350,000
Total	26	$5,500,000

These are simple tables, but they do a good job at showing both count and impact in the same report section.

Solution Effectiveness

It’s possible to report on solution effectiveness by mapping each solution from the period to some form of effectiveness hierarchy. We like the classic Hierarchy of Controls chart, but you can probably think of a few ways of scoring solution effectiveness. The hierarchy of controls chart we use looks like this:

Here is a brief description of each level, using automobile safety as an example:

Elimination: Completely eliminates the hazard altogether. Not getting into a car at all is the safest way to avoid being injured in a car.
Substitution: Substituting one thing for another less-risky thing. Traveling by train substitutes one mode of travel for another.
Engineering: Engineering a less-risky option. Since the first seat belts were introduced, cars have been engineered to be less risky in a variety of ways.
Administrative: Using rules, regulations, procedures, and training to reduce risk. Outlawing the use of a mobile device while driving is an administrative control.
Behavior: Getting people to behave in a less-risky way. The choice to not use a mobile device while driving is a behavior modification.
Protection: Personal protective equipment is the last line of defense. Seat belts are a form of personal protective equipment in cars. Race car drivers wear 5-point harnesses, helmets, head/neck restraints, and fire-resistant clothing.

Solutions from lower levels of this chart are harder to maintain over time and therefore are generally less effective. We like to challenge investigation teams to try to find higher-value, creative, solutions that are more effective without breaking the bank. The table below is one way of reporting solution effectiveness: