Root Cause Analysis of PEW

This paper discusses the root cause analysis of Precision Engineering Works Pvt. Ltd. (PEW) and suggests an improvement plan for the mitigation of the problems. It also identifies the competencies required from the employees of the PEW to bring out the challenges.

Running head: ROOT CAUSE ANALYSIS OF PEW
ROOT CAUSE ANALYSIS OF PEW
Name of the Student:
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Author Note:

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ROOT CAUSE ANALYSIS OF PEW
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Identification of the root cause:...................................................................................................3
Tools for root cause analysis:......................................................................................................4
Choice of technique for the root causes analysis for PEW:.........................................................6
Improvement plan for the mitigation of the problems:................................................................6
Competencies required from the employees of the PEW to bring out the challenges:...............8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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ROOT CAUSE ANALYSIS OF PEW
Introduction
Precision Engineering Works Pvt. Ltd. (PEW) is the leading company for the
manufacture of the plastic module parts for the telecommunication business. The company is
operating the business for 30 years and the client of this company are major telecommunication
services. There are some of the issues and the problems due to which the company is facing
some of the competitive challenges. The paper is concerned about the about the current business
situation of the PEW (Peerally et al.,2017). There are other companies which are performing
well in the market and are posing as the challenge for the PEW. In order to find out the problem
raising in front of the company, the management of the company has given three months time.
Within this time frame the advisors have to make the recommendations for the improvement of
the situation for the company ( Gijo & Scaria,2014) . In order to do this the root cause analysis
of the problem has been done. Based on the root cause analysis the improvement plan has been
implemented. In order to adopt the changes in the organization the training of the employees is
elaborated. The objective of this approach is to develop the changes in the organizational process
of the company so that the PEW can adopt the dynamic marketing condition and improve the
overall business.
Discussion
Precision Engineering Works Pvt. Ltd. is a leading plastic modules parts manufacturing
company which provides plastic parts to the telecommunication business (Timans et al.,2016).
The company is a famous name and thus has the clients which are well known names in the
telecommunication industry.

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ROOT CAUSE ANALYSIS OF PEW
Recently , it has been seen that the company is not doing well in the competitive market.
The objective is to make the analysis of the situation and identify the cause of the happening of
the situation. In order to find the problem of the Pew , the root cause analysis is needed to be
done.
The profitability of the PEW has decreased to 45% in recent time. It has been seen that
the company is not doing well in the competitive market. Though PEW is a famous name in the
business sector, there are certain factors which are leading to the degrading situation for PEW.
The root cause analysis can be done in order to identify the problems regarding this situation.
Identification of the root cause:
It has been seen that the manufacturing of the plastic modeling is an emerging sector in
the business industry (Chay et al.,2015). In that case, many companies are investing their money
in this business. Earlier, the size was the market was small and Pew has to compete with small
number of companies. However, the situation is changing dynamically and the number of
competitors are increasing. This is making the situation competitive for the PEW.
Another concerned factor regarding this is the pricing strategy of the products. The
number of competitors are increasing. In this case, the clients have many options for choosing
the service provider. In this case, the pricing plays an important role in determining of the
future of the business. The pricing of the products produced by the other companies are less than
the products of the PEW. This is the reason the client is going for the cheaper products for the
mitigation of the production cost of the telecommunication goods.

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ROOT CAUSE ANALYSIS OF PEW
It can be said that the main causes for the PEW facing challenges for making the new
contracts are the increase of the competitors in the market and the comparatively high price of
the products produced by the company.
Tools for root cause analysis:
There are various tools for development of the root cause analysis for the company. Some
of the tools and techniques for the root cause analysis are- brainstorming, fishbone diagram,
flowcharting, affinity diagrams, five whys, and current reality tree and failure mode and effects
analysis.
In the brainstorming the opinion of the all members in the team are considered for
making the decision regarding a situation. This option provides the way for considering the
opinion from different point of view. In the brainstorming process the problem can be viewed
from the different aspects which leads to the problem way for the solving of the problem is a
easier way.
Fishbone diagram is also known as cause-effect diagram. The main objective of fishbone
diagram is to identify the root cause of the problem happening in the organization. In the
fishbone diagram the head of the fish denotes the problems and the issues identified in the
organization and the company. The backbone of the fishbone diagram points to the problems or
the head of the diagram. The causes of the problem will be denoted as the arrows towards the
spine (Kellogg et al.,2017). The whole structure looks like the fishbone. The causes of the
problem can be solved using the brainstorming process.
Flowcharting is another tool for the root cause analysis. The flowchart can be denoted as
the decision tree in this case (Indrawati & Ridwansyah, 2015). This is also known as the business

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ROOT CAUSE ANALYSIS OF PEW
process mapping. The business process mapping uses the flow chart in order to identify the root
cause of the problems and the issues in the organization. The pictorial view through the use of
the flowchart helps the users to understand the flow of the information and their contribution in
the solving of the problem more clearly.
Affinity diagrams are also used for the root cause analysis. The diagram helps the people
to think creatively on the solving of the critical issues (Selim, Yunusoglu & Yılmaz Balaman,
2016). The use of this diagram is useful for the development of the new thinking ideas and
solving of the problems. The main objective of the affinity diagram is to collect the large amount
of data and group them into the different category for the processing (Prashar,2014). The process
starts with the generation of ideas. In this case the brainstorming is used for the listing of the
ideas. The ideas are listed in accordingly. The written ideas are grouped into the different
categories for the discussion. The header cards are created for all the groups. The diagram is
made on the basis of the header cards.
Another popular method for the root cause analysis is the known as “five whys”. This is
an interrogative technique for the investigation of the causes of the underlying problems in the
organization. This technique is helpful when one issue or the problem has multiple causes. The
main objective of these techniques is to make the troubleshooting of the problem and get the
conclusion without falling into the logical tarp.
Current reality tree is used for the exploring the current situation in the organization and
finding the issues and the causes of the issues. Current reality tree shows the relationship
between the different elements in the organization. The relationship shows the issues and the
problems of the organization. The root cause analysis is done on the basis of the brainstorming

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ROOT CAUSE ANALYSIS OF PEW
process (Muralidharan, 2015). Future reality tree can be made on the basis of the solution for
solving the problems and existing issues in the organization. This can be done for the
improvement of the current situation of the organization (Viveros et al,2014). This techniques
can be used when there are different elements present in the organization which belongs to the
different functionality in the operational process of the organization.
Failure mode and the effect analysis is another technique for the root cause analysis. It is
a highly structured analysis for the analysis of the failure of the system (Al-Tahat & Jalham,
2015). The issues and the problems in the organization are the main causes of the failure of the
projects or the operations in the organization. The main objective of this analysis is to identify
the causes of the failure in order to mitigate them.
Choice of technique for the root causes analysis for PEW:
Different processes and the techniques have been discussed for the development of the
root cause analysis. However, the brainstorming process will be helpful for the PEW regarding
the root cause analysis.
In this case the use of the brainstorming process has been adopted. In the brain storming
process the opinions of the different members of the team has been considered regarding the
situation (Estrada, Shunk & Ju,2018). Based on the different opinions from the different
members the identification of the cause for the problems has been detected.
Improvement plan for the mitigation of the problems:
Problems identified:
There are several improvement plans those can be initiated for the modification of the
whole situation. In this case, the identified causes for the challenges for PEW is the competitive

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ROOT CAUSE ANALYSIS OF PEW
market along with the threats from the new companies and the comparative high price of the
products of PEW.
Action taken:
In order to mitigate these causes the management can implement certain plan which
includes the improvement of the products and making the products in a cost effective way so that
strategy of the pricing can be done in a proper way.
Follow up and action status:
In order to carry out the pricing strategy and the implementation of the process which
will enable the production of the products in an optimized cost certain project planning is needed
to be done. The planning of the project needs the analysis of the requirement in a proper way. In
this case the PMBOK guide for the management of the project can be followed (Ghaferi &
Dimick,2015). According the PMBOK there are five stages of the management of the project-
the initial stage of the project management is the analysis of the requirements. In this case
requirements of the PEW to implement the process that will help the organization to adopt the
right pricing strategy and mitigate the overhead cost of the production. The next stage is then
planning of the project which includes the making of the blueprint of the execution. In the
execution phase the implementation of the process that will help the PEW to improve the overall
business situation (Tyagi et al.,2015). The monitoring and the control phase are concerned about
the evaluation of the outcome of the project. The development ends with the closing phase of the
project.
For improving the quality of the product the six sigma can be applicable in managing of
the project. The main objective of the application of the six sigma is to improve the overall

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ROOT CAUSE ANALYSIS OF PEW
quality of the service through the flow of communication of the correct data. The application of
the six sigma will help to provide the right information to the users of the products of the
company.
Competencies required from the employees of the PEW to bring out the challenges:
Business and strategic management:
The employees are needed to be made aware about the changes in the organizational
process. The new technology can be implemented in the organization for reducing the overhead
cost of the production. In that case , the employees are needed to be trained to handle the new
system (Yang et al,2018). Apart from that the communication plan for the making the flow of
communication between the employees and the management level is needed to be implemented.
The employees at the management level are needed to be aware about the pricing strategy of the
products (Tonelli et al.,2016) . In this case the proper analysis of the pricing strategy of the
products from the other companies are needed to be evaluated. It can be said that the right
pricing strategy and the mitigation of the overhead cost of the production can improve the
business situation for PEW.
Technical Management:
The improvement of the technology is needed to be done through the application of the
emerging technology. In this case, the employees are needed to be trained for the handling of the
new technology used in the organization.
Leadership:

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ROOT CAUSE ANALYSIS OF PEW
The whole project is needed to be developed under the proper monitoring of the right
leader. Choosing of the right leader will help to merge the communication gap between the team
members and the will help to deliver he right outcome of the project.
Conclusion
The paper has discussed plans for the mitigation of the issues and the problems PEW is
facing currently. It has been identified that the increase in the price of the products produced by
the PES and the entry of the new competitors in the business market has made the situation
challenging for the PEW. The cause of the problems has been identified in this case. Different
tools and techniques for the root cause analysis has been described I this case. Regarding the
solving of the issues of PEW, the brainstorming process has been adopted in this case. It can be
concluded from the above discussion that the solving of the identified problem can help the PEW
to gain the competitive advantage in the dynamic business situation.

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ROOT CAUSE ANALYSIS OF PEW
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