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Some examples of root causes by Functional areas requiring further
analysis may include:
Engineering
• Incorrect (BOM) Bills of Materials/formulations
• Incomplete or inaccurate engineering documentation
• Procedures not complete or correct
Engineering/Marketing
• lack of product/component standardization
• engineering changes not coordinated or too many
• complex BOM product structure
• engineering/customer product changes
Engineering/Purchasing
• can't find local suppliers
• single or sole sourcing
Human Resources/Manufacturing
• fluctuating labor requirements/availability
• poor or no employee training program
Logistics
• too many warehouses or distribution centers
• distribution network not streamlined
Management
• no measurements on schedules, BOM, inventory accuracy, inbound,
forecasts
• business systems not integrated/utilized
• lack of discipline within formal/informal structure
• no business strategic plan
• too much paperwork
• lack of inventory policy/procedures
• lack of understanding of what impacts inventory
• not committed to Class A MRP II or Continuous Improvement
concepts/philosophy
• lack of business vision
• company/corporate goals not communicated
Manufacturing
• long setups/changeovers of equipment
• poor quality/excessive rework
• single production line
• variable process
• run length economics
• planned facility shutdown
• poor or no equipment maintenance program
• poor product flow within manufacturing process
• old manufacturing/processing equipment needs preventive
maintenance
• scrap material not being processed properly or accounted for
Marketing/Sales
• lack of understanding of international buying and/or marketing
environment
• actual lead times do not match published lead times
• lack of sales/marketing intelligence
• order entry process too long, not focused, complicated
• options or customer request changes too late in the manufacturing
process
Marketing/Manufacturing
• marketing and manufacturing not agreeing on delivery cycles
Materials
• poor data integrity—systems, planning
• inaccurate inventory records
• inadequate scheduling process
Purchasing
• supply constraints
• transportation lead times—long
• price volatility of purchased material
• international distribution/supply pipeline
• early material receipts
• required quantities less than order quantities
• vendor's business systems inadequate
• material title transfer—plant vs. vendor
Quality
• excessive delays for testing/inspection
• no quality assurance procedures
• no TQM system/process at suppliers' plant
• lack of Supplier certification/partnership
To be Continued
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