Continuous Improvement: Root Cause Analysis for Precision Engineering Works Private Limited

Assessment 2: Case study: Continuous
Improvement

Table of Contents
Introduction................................................................................................................................2
Determine the root cause that leads to the issues.......................................................................2
Assumption for this..................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

Introduction
According to Ilie, & Ciocoiu, (2010), the problem has been and will remain one of the major
issues of any organization and hampered the performance of the business and profitability.
The main objective of this assessment is to determine the root causes that lead to the issues of
an organization Precision Engineering works private limited. The organization is offering
original equipment manufacturing in modelling part for telecommunication organization. Due
to high competitions and entry of new clients in telecommunication industries, reduces
organization’s profitability about 45%. Thus main objective of this assessment is to evaluate
and analyze the main roots cause of these issues through seven tools and techniques. These
tools and techniques are Pareto analysis, cause and effect analysis, histogram, scatter
diagram, control chart and 5 why techniques. In addition to this, the assessment also
empathized upon the continuous improvement plan to ensure issues are not repeated.
Determine the root cause that leads to the issues
The consultant implemented Pareto analysis, cause and effect analysis, histogram, scatter
diagram, control chart and 5 why techniques. With help of fish bone diagram it can be
observed that lack of skills and unavailability technology leads the main issues why the
business is suffered from the profitability issues (Wong, 2011). Then the consultant
implemented the 5 WHY techniques in order to investigate the issues of reducing
organization profitability.

Continuous Improvement Plan
Identified Problems Low skill Set of the employees & absence of training and development :
One of the major issues that have been identified in the context of
organization is that low skill set of the employees due to the absence of
proper training and development arrangements. In reality there is no proper
business ground where the employees can share the reason of their skill
shortage and the requirement of training
Action taken for
The management has noticed the problem and accordingly a committee has
been set up to interview the individual employees or the team leaders as
required for gathering specific information regarding skill shortage and the
required training (Bessant & Francis, 1999).
The committee has interviewed the selected employees and team leaders as
per their importance of job responsibility and gathered information directly
regarding the possible training and development required.
The information gathered from the interview have been presented in a
report format to the management for taking the required decision
Resources required The management report identifies that major issue that has to be solved
through training and development is improvement of communication skills
and lack of training while handling the IT systems of the organization.
To solve the issue a team of communication experts as well as IT experts
will be required who will train the employees of the relevant sectors at
regular intervals for time period of six months
A customized training process will be used as per the requirement of the
employees an d the sector in which they are working
Follow up actions and After every six months the performance of the employees(who have