Quarterly December 2011 - Odfjell

QHSE
ODFJELL QUARTERLY magazine
Making sustainable changes using Root Cause Analysis:
–‘Smart’ problem solving
By Bjørn Ydse
Root Cause Analysis (RCA) is a process for
identifying the ‘basic’ or ‘causal’ factors
that underlies variations of outcome. RCA
typically allows you to identify the “root”
of the problem by questioning ‘how’, ‘why’
and ‘where’ a problem, adverse event, or
trend exists. This analysis should focus on a
process that has the potential for redesign
in order to reduce risk.
Apollo Root
Cause session
for facilitators
in Bergen
RCA is also a way of looking at unexpected
events and outcome to determine all of
the underlying causes and identify recommended
changes that are likely to improve
them. Through RCA, you can make decisions
and look for sustainable solutions based
on data and facts. RCA focuses primarily
on systems and processes, not individual
performance.
NR.04/ 11
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Apollo in Odfjell
– a method for Root Cause Analysis
Apollo RCA is a problem-solving method that
is scalable depending on the significance of
the problem and the ability of the RCA team
to find not only the symptoms but also the
causes. The method helps to “drill down” to
the real causes and implement actions for
the solutions. Apollo has been chosen as a
company tool, and training of facilitators and
managers has been carried out over the last
half year at several locations worldwide. Some
units have already used the method to find
the real causes that have lead to incidents and
more importantly have managed to identify
preventive actions to avoid repetition.
Where and when to use the method?
All business units in Odfjell can use the
method. Recent analyses and examples are
from the ICT department in Bergen and an
incident at the terminal in Rotterdam (OTR).
Other typical examples can be related to:
• recordable injuries
• reportable releases /
chemical spill to the environment
• revenue - loss of profit
• cost of non-quality for instance by
re-work, off-hire, damaged product,
lost customer
• customer complaints
• frequent incidents and ‘near misses’
Return on investment
Despite the impressive results that these types
of analyses so often deliver, many companies
fail to see the true potential of investing in
RCA. The main reason for this is the perception
that it’s too difficult, or even impossible
to obtain the data needed. In addition, executives
who are not close to the RCA process are
likely to only see the expenses required such
as employee training. Nevertheless, experiences
from many companies worldwide show
that it is fairly easy to see how RCA is able to
help reduce cost. It is less obvious perhaps
how RCA is able to generate revenue and
profit margins. However, you only have to
look at the fact that in most companies, the
cost of non-quality is between 1.5 and 2.5%
of the revenue. Therefore it should not be
difficult to find reasons for investing and
implementing in RCA methods to improve
the costs of non-quality figures.
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