Looking for root cause: a comparative analysis

Abstract

PurposeThe purpose of this paper is to demonstrate that management decision making and corporate strategy must start by questioning all prior assumptions and arguments, while focusing on simple fundamental truths.Design/methodology/approachThe paper examines fundamental principles practiced by foreign‐owned transplants (e.g., Honda, Toyota, and Nissan) that have entered the automotive marketplace in the latter half of the twentieth century. They use lean production methods, while traditional industry players utilize mass production methods. The authors refer to these two production methods as “The Toyota Way” and “The Traditional Way.” Comparative analysis is conducted to identify and contrast key differences, which are examined using root cause analysis.FindingsThe paper finds that problems facing US industry could have been prevented, if companies had taken the time, and made the effort to fully understand the root causes.Practical implicationsManagers learn that it is beneficial to take time to properly identify and understand the root cause of any problem, no matter how large or small the problem may seem.Originality/valueBy turning 14 principles of lean management upside down the point is made in the paper is that one must start out questioning everything. Even changing something as simple as the order of principals examined could force a very different look at the situation. A summary of root cause analysis suggests a simple answer to the seemingly complex question: “If everyone knows what the problems are, then why isn't anyone fixing them?”