Tag Archives: analysis

Where’s the Problem?

“I don’t understand,” Abby lamented. “I have been working with the sales team for the past six months. We had an increase in sales volume almost immediately. But, after three months, sales began to trail off. I have all the data, here in front of me. The team is making the calls, following the process, but we aren’t getting the orders we expected.”

“What feedback do you get from the sales team? What are their reasons?” I asked.

“That’s the worst part, they just want to blame someone else,” Abby was mildly irritated. “They are blaming the shipping department, of all things.”

“What about the shipping department?” I pressed.

“The sales team says the shipping department isn’t doing their job according to the delivery schedules.”

“And what does the shipping department say?”

“Seems like everyone is in blame-mode. The shipping department says they can’t get orders out of the production department. And the production department is blaming everything on a machine,” Abby replied.

“Tell me about the machine.”

“It’s old and only goes so fast. Work stacks up in front of it, but we can only get so-much output, and it’s running three (8) hour shifts. We would buy another machine, but we have no place to put one and it costs $250,000.”

“Let’s look at the sales orders placed in the first couple of months of your program. What is this list of back-orders?”

“That’s what the sales people are talking about. Their sales orders turned into back orders and their back orders turned into cancelled orders. Now they can’t seem to get new orders.”

“Tell me Abby, how might you be able to connect a slow machine to orders, back-orders and cancelled orders over a six month period? Think about how one system impacts another system.”

Get to the Root Cause of the Problem

Emily was nervous as she entered the classroom. She knew that I would not allow her to be a passive observer, but front and center in the crucible. I turned to greet the other folks who were now streaming in.

“I would like everyone to meet Emily. She has an interesting problem at work. With our help, she is going to walk us through some solutions.” Emily looked at me sideways. It would take her a bit to trust this group.

Up at the front, Emily stood. “I really don’t know what kind of problem I have,” she started. “Our manufacturing line is not meeting its daily quota and the reject rate is at 11 percent.” Emily continued to describe the circumstances, considering morale, motivation and working conditions. Then the questions started from the group.

“Who decides the daily quota?”
“How is the daily target communicated to the line?”
“Who tracks the number of completed units?”
“How does the line know if they are falling short or getting ahead of the target?”

Emily responded crisply, “The daily quota is determined by the sales forecast and what we need in stock, but the people on the line don’t need to know that. They just need to build the units faster. When the QC people pick up the units for inspection at the end of the day, they count them and it’s on my report the next day.”

Ernesto raised his hand. “So, the line doesn’t know how far they missed Tuesday’s quota until Wednesday?”

“Not exactly,” Emily replied. “I don’t want to discourage them, so I just tell them they were a little short, that they are doing good job and to try harder. I am worried about morale getting any lower.”

Ernesto tilted his head to directly engage Emily. “You are treating this issue as a morale problem. Morale is only a symptom. You have to treat the root cause of the problem, not the symptom.”

Randy dragged a chair up front for Emily to sit. We were going to be there a while.