5 Whys Method for Continuous Improvement

The key to getting to the root cause of business problems more quickly and back on track to #MakingBIGHappen? Just ask: "Why?" The "Five Whys" was developed by Taiichi Ohno, the father of the Toyota Production System, as a problem-solving tool. The exercise requires you to ask "Why?" five times to understand what has caused the problem you face. Let's say you missed your monthly sales number by 5 percent. The conversation between you and your sales manager might go like this: 1. Why did we fall 5 percent short? (We made fewer sales calls this month.)  2. Why did we make fewer sales calls this month? (We had fewer leads to work this month.)  3. Why did we have fewer leads to work this month? (We sent fewer email offers.)  4. Why did we send fewer email offers? (We were short-staffed.)  5. Why were we short-staffed? (We could have planned better for two people who were on vacation.) If you stopped asking "Why?" after question 1, you may have thought the solution to the problem was to make more sales calls next month. But in reality, you had to ask five "Whys" to realize the fewer calls were driven by a lack of planning for two people on vacation. If you do not fix the vacation planning process, the call shortfall problem will reappear. If you can't imagine asking "Why" five times to your senior people because it might feel childish, I would tell you to give it a shot anyway. You will get to the root of problems faster and fix them for good. 

How to Use the 5-Why Technique: SCENARIO -Production started without verifying that all components were in stock. Someone realized that a required component was out of stock and production had to shut down. This led to grumpiness throughout the company. 5-Why Time! -Assemble your investigation team. With this scenario, we should have representatives from production, inventory control, procurement, and quality on the team. -Ask the first why. Q: Why was this material out of stock when production started? A: The inventory management system did not flag the low stock level of the raw material in time. -Drill down with a second why. Q: Why did the inventory management system not flag the low stock level? A: The threshold for reordering this material was set incorrectly in the system. -Keep going with a third why. Q: Why was the threshold for reordering set incorrectly? A: There was a miscommunication between the procurement department and the inventory management team regarding the consumption rate of the raw material. -Fourth why. Q: Why was there a miscommunication between the procurement department and the inventory management team? A: The standard operating procedure for updating inventory parameters does not require cross-departmental verification of changes. -Fifth why. Q: Why does the standard operating procedure not require cross-departmental verification of changes? A: The procedure was developed at a time when the company was smaller, and communication was more direct. It has not been updated to reflect the company's growth and increased complexity of operations Solutions: -Update the SOP(s) to include a cross-departmental review of any changes to inventory levels, especially for critical materials. -Conduct regular training sessions for staff on the importance of accurate data entry and communication -Introduce an automated alert system in the inventory management software that notifies multiple departments when stock levels of critical materials approach the reorder threshold. -Review and adjust the reorder thresholds for all critical materials with all relevant departments to ensure they reflect current consumption rates and lead times. Monitor Results: After implementing these solutions, the company should monitor the inventory levels closely to ensure that the issue does not recur. This could involve regular audits of the inventory management system, feedback from production, procurement, and inventory teams to assess the effectiveness of these solutions. This is one of the most common root-cause analysis techniques across many industries for a reason - it works pretty darn well. #quality #rootcauseanalysis #manufacturing #problemsolving #dietarysupplements #beautyindustry #cosmetics #foodandbeverageindustry

What are the "5 Whys?" And how does a simple question solve problems? TL;DR: When a serious problem arises, you ask "why" five times to reveal the root cause, unraveling layer upon layer until the core is exposed. Although a relatively simple technique to understand and employ, the "5 Whys" provides us with the chance to discover new and powerful solutions. It pushes us to go deeper when solving problems, rather than accept the first or second idea. For example, let's say an important client recently churned: Q1: Why did client A churn? A1: The client didn't feel enough value was gained. Q2: Why wasn't there enough value? A2: The client didn't consistently use the product. Q3: Why didn't the client use the product consistently? A3: The client missed key milestones during the onboarding process. Q4: Why did the client miss these milestones? A4: The client declined onboarding training. Q5: Why did the client decline onboarding training? A5: The client said it was too costly. By using this technique, the team better understands the cause of the churn. Going forward, solutions might be to offer onboarding for free because it's more costly to lose the customer than to provide training. Or it might be to offer some kind of tiered training, with a digital or 1:many option available for smaller clients. Or it might be to build in-product solutions such as popups or tutorials, thus eliminating altogether the need for costly training. The "5 Whys" serves as an indispensable tool that I have used for targeted problem resolution. Complex problems can be dismantled, and the deep dive reduces the likelihood of acting on the wrong conclusions. PS. What other problem-solving techniques do you use? 🔔 Follow Chris Cotter for more on #leadership.

In operations one of my most favorite lean concepts was the "Five Whys". The "Five Whys" is a relatively simple problem-solving technique designed to help uncover the root cause of a problem by repeating the question "Why?" five times. When operationalizing a DEI strategy, I have found that using the "Five Whys" methodology is helpful when trying to determine root causes, address systemic challenges, drive continuous improvement, and promote accountability. 📈 ➡ Identify Root Causes: Just as in Lean Six Sigma, where the "Five Whys" method may be used to uncover the root causes of a manufacturing problem, the "Five Whys" can also be applied to core HR metrics (hiring, attrition, or promotions) to help pinpoint underlying root causes (variability in interview processes, lack of leader accountability to standard promotion criteria, etc.) ➡ Address Systemic Challenges: Lean Six Sigma emphasizes systemic problem-solving, and DEI challenges are no different. In manufacturing, addressing systemic challenges involves identifying and addressing the root causes of defects or safety issues in processes. Similarly, in DEI, identifying the root causes of disparities in career outcomes may involve understanding systemic barriers that may exist across the employee lifecycle (bias that may be present in hiring, promotions, exits). By asking the "Five Whys," we can trace biases, barriers, and inequities to their source, enabling us to address and resolve systemic challenges head-on. 💡✨ ➡ Drive Continuous Improvement: The "Five Whys" in Lean Six Sigma also drives a culture of continuous improvement. Similarly, in DEI, ongoing evaluation of outcomes fosters a culture of continuous learning and improvement of a DEI strategy. ➡ Promote Accountability: The "Five Whys" instills accountability in Lean Six Sigma processes. Applying this to a DEI strategy encourages accountability at all levels. When diving into the root causes of disparities, organizations can then hold themselves accountable for implementing effective measures that drive equitable career outcomes for all employees. ➡ Encourage Open Dialogue: Just as the "Five Whys" require open and honest communication, DEI initiatives thrive on transparent dialogue and collaborative problem solving. The "Five Whys" is a process that all leaders can use to challenge assumptions around employee norms, practices, or policies while effectively root causing the underlying problems that may exist. In weaving the methodologies of Lean Six Sigma into the fabric of an effective DEI strategy, we unlock a powerful problem solving approach that helps identify true root causes while also guiding us towards implementing lasting solutions. ⚙️🎛️ #LeanSixSigma #deib #continuousimprovement #inclusiveculture #5whys #eqitablepeocesses