An analytical tool that is used by managers to track down the very essence of a problem. This is involves a multi-step process to identify the primary cause of the problem at hand, on the assumption that systems, procedures and events are inter-related. An action taken in specific area is bound to impact other areas, and vice versa. The steps of tracing the problem backwards are as follows:
- Defining the problem: understanding what happened (the result) and defining the effects.
- Collecting data: when did the problem arise? for how long it persisted? and which parties or operations were impacted?
- Identifying casual factors: pinpointing all possible factors: in terms of type-human, physical, organizational; source- internal, external.
- Identifying the root cause: applying all available data and information in figuring out the real reason- why did the problem happened?
- Recommending and implementing possible solutions: these solutions have to be permanent- i.e., with a lasting effect.
Root cause analysis is known for short as RCA.
