MIS 374 Christine Lyman, Sr. Manager Jan 2015 Root Cause Analysis

Over 13 years in the consulting field working with primarily manufacturers and distributers in different industries Professional background © For information, contact Deloitte Touche Tohmatsu2 A music cd distributor A plastic manufacturer Baked goods manufacturer and distributer Mobile device manufacturer and distributer Computer manufacturer and distributer Concrete manufacturer and distributer

What does a consultant do? But more importantly…… © For information, contact Deloitte Touche Tohmatsu3 Travels all the time Charges a lot of $$ Uses acronyms Builds graphs, graphs and more graphs Solves problems

Businesses hire consultants to solve their problems because they have a knack for doing root-cause analysis Why consultants? The benefit of using a consultant is that you get the impartial view of what is happening in the organization and through a thorough root-cause analysis, you get visibility to underlying problems that you didn’t know existed © For information, contact Deloitte Touche Tohmatsu4 Company identifies a problem that needs to solved Consultants analyze the organization to determine solution Consultants may find that there is one or many other problems that need to be addressed

How we perform Root-Cause Analysis 5© For information, contact Deloitte Touche Tohmatsu

Through a standard methodology, we have a consistent approach to address any company’s issue Use a standard process © For information, contact Deloitte Touche Tohmatsu6 1.Confirm the issues faced by company 2.Determine scope of project/issue that the project team will address 3.Gather business requirements and perform analysis Symptom(s) Problem(s) Solutions Objective(s) Performance criteria Deloitte ActivityMIS374 Activity Constraints

Example 1: Root-Cause Analysis Background: Global multi-billion dollar manufacturing/ distribution company has implemented an Accounts Receivable system Symptoms One of the countries deployed feels the new system is cumbersome There is a language barrier between the deployment team and the country There has been a very large increase in unapplied dollars which has never happened before Problems Solution The users didn’t understand that they couldn’t change exchange rates in the system since the previous system allowed this Objectives To implement and enforce the new global process To determine what needs to be done with the dollars now unapplied Performance Criteria Training courses need to held with the users within the next 2 months The correct accounting treatment for all of the dollars not accounted for must be determined before the next month end close

Example 2: Root-Cause Analysis Background: Global multi-billion dollar manufacturer looking to implement a global ERP system Symptoms Multiple countries using different systems and using different processes Inconsistent customer experiences depending on the country Different countries have different expectations of how orders should be managed Problems Solution Each country has a different standard and process to handle customer orders Objectives To implement a global system To design global processes to ensure consistent customer experiences Performance Criteria The largest part of the business needs to be up and running within 1 year and the rest of the globe within 2 years. There must be a clear change management plan so all of the countries understand what is expected

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