Australian Engineering Private Limited: Root Cause Analysis And Risk Management Plan Essay. (70 Characters)

1. Identify the root cause(s) that lead to the problems using appropriate tools and techniques.

2. Develop a risk management plan to ensure the problems and issues are not repeated.

3. In your opinion what leadership style should be adopted to help bring about the necessary changes?

Challenges faced by Australian Engineering Private Limited

The upcoming pages of this report mainly deal with Australian Engineering Private Limited. This particular organization is considered to be an original equipment manufacturer which specializes in plastic moulding parts. These equipments are manufactured for telecommunication industry. AEWs is providing service to their client industry for more than 30 years (Fleming & Koppelman, 2016). Customers of AEWs tend to provide service to major of the telecommunication service providers. As a result of good reputation among the clients, AEW has become a successful organization in the whole industry. But, with time various new suppliers have begun to grow in the industry. It has ultimately become a serious kind of impact on this organization. It has become very tough to win new contracts as their customers can explore new kind of option with their suppliers (Walker, 2015). The competitors aim provide much better pricing in comparison to AEW.

In the report, an identification has been made concerning the root cause of the issues by making use of tools and techniques for AEW. A risk management plan has been provided so that the encountered problem and issues are not repeated anyhow. In the risk management plan various parameters for analyzing risk like risk register, qualitative and quantitative risk, risk response, implementation of risk response and implementation of risk response has been provided.

Australian Engineering works privately limited comes up with different kind of stakeholders with them (Binder, 2016). It mainly focuses on development of stakeholder which is vital for growth along with development for AEW. This particular organization is encountering large number of challenges with the arrival of new suppliers in the market. They can provide new kind of product and services at revised rate. The customers of this organization are focusing new kind of ideas for new organization. It is mainly done so that they do not meet their requirements and needs. Senior and experienced employees of AEW have started to join new organization as they are providing them with proper growth (Binder, 2016). It has become very much difficult to win new contracts as their customers can come up with new option with other suppliers. The competitors of AEW aims to provide much better pricing than AEW. It comes up with new kind of factors with have eroded the overall profit of AEW by almost 45%. With time, many new and experienced employees of AEW have been opted for joining new players in the industry.

Root Cause Analysis of the issues

The senior management of AEW is very much focused on the present development and are focusing new kind of ways for improving it(Schwalbe, 2015). The main focus of this organization is to be again become the most preferred choice of suppliers. AEW has engaged its organization to provide new kind of advice which is needed for tackling the problem. The management team at AEW is very much focused on providing all necessary kind of report for changing the current of situation. Management of AEW focus on fact that all the required issues need to be resolved within three months.

Pareto Diagram:  It can be defined as a graphical representation of the issues in proper order in most of the cases (Sears et al., 2015). It is considered to be least frequently to be used. It can be used for understanding the overall frequency of issues or even types of defects AEW has failed to get new customer due to poor marketing strategies. AEW is unable to get new customers as a result of poor marketing strategies. This tool helps in identifying the new kind of customers for identifying the main cause of the issues in this organization. By making use of this diagram, AEWs can easily decide more serious or even frequent kind offender. This particular diagram comes up with the notion that 80% of the major issues are incurred or even caused by 20%. The main cause of this method is Poor marketing Strategy.

Fig 1: Pareto Diagram

(Source: Fleming & Koppelman, 2016)

Cause and effect diagram (Fishbone Diagram): It are a well-known tool which helps in identification and display of specific problem and even characteristics. The employees of AEW are leaving the organization due to poor management strategies. It can be used for establishing a proper kind of relationship between the given outcome and other factors which can influence the overall outcome of AEW (Heldman, 2018). This particular kind of diagram can also be stated as Ishikawa diagram. It can also be defined as fishbone diagram just because of its looks. This particular diagram can be stated as a well-known tool which can be used by AEW for identifying and analyzing the major cause in this. There are large number of benefits of construction of cause and effect diagram like

• Helps in understanding the main cause of the problem or even the quality of characteristic by making use of structured approach.
• Provide the main cause of variation in each of the process.
• Focus on group participation and making use of knowledge of the given process.

Fig 2: Cause and Effect Diagram

(Source: Created by Author)

Histogram: A Histogram can be considered to be bar chart which helps in distribution of set of given data. It does not reflect the process for performance over the given time. It can help the histogram like a snapshot (Kerzner, 2017). By this particular method, all the required data can be presented in user friendly environment. It can help this organization that is AEW in construction of this histogram by taking account of large number of points like

• Summarization of large set of data in more graphical order
• Making use of comparison by understanding the limits
• Proper communication of information in graphical order.
• Making use of tool for proper decision making.

Risk Management Plan

Fig 3: Histogram for Employee Retention

(Source: Created by Author)

Control Chart: It is a well-known statistical tool which is required for understanding the variation of the process which can result in some special kind of cause. AEW can easily make use of control chart for achieving overall stability of the process (Joslin & Müller, 2015). Process stability can be stated as a method by which certain number of process can be easily displayed in certain degree of consistency. This particular consistency is characterized by stream of data flow which is under the given control limits.

Fig 4: Control Chart for AEW

(Source: Created by Author)

Scatter diagram: It is considered to be as convenient diagram that is mathematical tool for studying between the correlation between variables. As per AEW, the data point can easily correspond between two variables of interest (Cleden, 2017). A scatter diagram can be considered to be helpful in understanding the true strength of relationship between the overall cause and effect between the two variables. It can be helpful in assuring that improvements can be there for understanding the main cause of the issue.

Fig 5: Scatter Diagram for Employee Retention in AEW

(Source: Walker, 2015)

Check Sheets: It can be stated as a generic kind of tool which can be used in wide range of reasons. The biggest plus point of check sheet is all about making use of recording marks by AEW on the sheet (Todorovi? et al., 2015). Check marks can easily provide the required value by which information collection can become information like a data collection. AEW can easily make of check sheet for understanding various kind of problem and along registering the frequency of incident which caused the issues.

AEW can easily make use of Check Sheet for getting various benefits like

• The most suitable way of display of data for AEW.
• It is very much easy and convenient to use by the management of AEW.
• It can easily identify the main cause of the encountered issue.
• It can easily provide a proper structure for uniform data collection.

Fig 6: Check list of AEW employees

(Source: Binder, 2016)

5 why tool: In most of the cases, the issues are not welcome in any organization like AEW. For various kind of encountered issues in AEW, there are some solution and problem to start for improving the project (Hornstein, 2015). Effective solution for AEW can be found by analyzing the main cause of the structure in controlled way. By analyzing the main cause of the issues any kind of repetition can be easily prevented. In most cases, when the issues are dealt in proper way then AEW can easily find the issue and easily deal with it more effective way.

Tools and Techniques used for analysis

Fig 7: 5 Why tool

(Source: Verzuh, 2015)

Problem	Root cause	Tools and Techniques
AEW is not getting new customers	Poor marketing Strategy of AEW	Check Sheet Pareto chart
Employee leaving AEW	Poor management Strategy	Fishbone Diagram
Competitors can provide same product at much less price	AEW is making use of same machine for the last 20 years	5Whys
New competition in the market	Not meeting the demand of the products	Fishbone diagram Check sheet Diagram
Overall profit decreased by 45%	The frequency of modular keeping on breaking down	Histogram

Risk ID	Risk	Main cause of the risk	Responsibility of risk	Effect of risk	Proper plan
R1	Retention of AWS Employee	Improper method of appraisal of employee of AEW	Management team of AEW	Low	Proper Policy for maintaining proper employee turnover
R2	Alternative option for customers of AEW	Improper strategy for business	Management of AEW	High	Having a clear idea with respects to the market trends
R3	Tough market competition	Improper business strategy	Project Manager of AEW.	Minimum	Proper analysis of both internal and external environment
R4	New suppliers threat	Improper business strategy	Team of AEW.	High	Upgrading different kind of strategy for professional of AEW (Mace et al., 2015).

Identification of risk

Qualitative Risk Analysis

Risk Plan Response

Risk Monitor

Category

Risk Id

Risk

Risk Event

Probability (P)

Impact (I)

Risk Score (PI)

Risk Rank

Potential Response

Cost

Date Raised

Date Closed

Status

High

Medium

Low

High

Medium

Low

0.25

0.5

0.75

2.5

5

7.5

Financial

R1

Retention of employee of AEW.

Providing direction to AEW

ü

ü

3.75

3

Use of policy in proper way

$500

12.01.2019

14.01.2019

Organizational

R2

Some other option for the employee of AEW

Overall changes in the structure of the management of AEW

ü

ü

1.25

2

Making changes in the overall business strategy

$200

6.12.2018

30.01.2018

Financial

R3

Tough Market Competition

Change in material pricing of AEW

ü

ü

2.5

1

Increase range of service

$15,000

5.12.2018

25.12.2018

Technical

R4

Threats from new suppliers in the market

Overall budget of the resources

ü

ü

0.625

4

SRM

$4,000

25.08.2018

30.08.2018

Risk	Risk Ownership	Proper Strategy	Establishment of Connection
Growth of new threats in the market	New supplier in the market	Proper management technique should be used by suppliers	There is some requirement of workforce in AEW which needs to be taken account for the management team (Anderson & Sun, 2017).
Tough market competition	New organization in the market	Proper understanding concerning present customers, attract new brands in the market	Present Business needs to be followed in AEW which can create competitive advantage over the other organization
Some other option to take into account	Customers of AEW	Engagement of customers’ needs to focus on various kind of management teams	There can increase in the overall range of services which is obtained through proper payment gateway.
Retention of senior employees of AEW.	Senior employees of AEW	Proper recruitment policy which is based on experience and expertise. It is toat	The employees of AEW can be easily rewarded with the help of bonus and incentives.

Risk	Implementation
Entry of new suppliers in the market	A healthy relationship needs to be established by supplier relationship (Maak, Pless & Voegtlin, 2016). It is mainly taken into account for the encountered risk
Tough market competition from new supplies	The very focus should be on the increase in overall business area along with new innovative ideas
Other option available for customers	A range of advanced products and services needs to be provided by AEW.
Retention of senior employees in AEW	AEW should come up with efficient policy for recruitment

Risk monitoring of project can be considered to be an effective way for keeping track of the project (Alharbi, 2017). An analysis has been done concerning risk response which is against the plan where various risk in the project can be managed properly. The main goal of project risk control is

• Identification of the present event which can have direct effect on this particular project.
• Both the probability and consequence of the risk event can easily affect the project deliverables.

There are various categories of risk which are discussed in details in this particular paper which needs to be monitored on a regular basis. The involved risk in this project can have less effect on the overall growth and productivity of the organization. The involved strategy does not affect the risk response of the project. It can be considered to be helpful in identifying the overall process of risk monitoring (Kesting et al., 2016). Management of AEW tends to play a key role in identifying the process of risk monitoring. Management team tends to play a key role in monitoring of the whole process risk response.

Business leaders around the globe tend to play a key in providing direction for managing the required changes in the organization (Australian Engineering Works). In most of the cases, leaders tend to come up with different kind of qualities. By the help of this, certain number of leaderships can easily emerge (Saleem, 2015). The overall effectiveness of leadership needs to be taken into account and most suitable one is chosen for AEW.

Autocratic: In this type of leadership, most of the power is used and it follows dictatorial style of leadership. It can easily direct the team members for completing a given task and objective. Both employee and team members come up with very little, if any input is required then automatically comes up to certain given task and objective (Nawaz & Khan, 2016). This particular kind of leaders makes use of deadlines for motivating both the team members for the overall success. Autocratic kind of leadership style can be considered to be very much effective in which the team members come up with unskilled members. This particular kind of leadership can easily resentment the employees and group members.

Democratic: This particular kind of leadership can be stated as a participatory kind of leadership as the leader can easily motivate the groups. This particular kind of leadership can easily stimulate the overall group discussion and along with understanding the decision making responsibilities (Tyczkowski et al., 2015). Most of the regular group members can easily understand the responsibilities where leader refrain from doing too much work.

Pareto Diagram

Transactional leadership: This particular kind of leadership style mainly requires a system for understanding the system of rewards and punishment. There is some proper kind of exchange of relationship between leaders and subordinates. The overall exchange tends to occur when the leaders for getting rewards through paychecks and incentives (Kang, Solomon & Choi, 2015). The corrective action is mainly carried out by the help of leaders when they fail to meet the required standards or even objectives. This particular model of leadership can easily motivate the employees or even the team members.

Transformational leadership: Transformational leaders can easily make use of vision or even inspirational approach which is needed for leading and motivating both members and members (DuBois et al., 2015). The transformational leadership is mainly characterized like motivation and charismatic. This type of leaders does not only motivate but also problem the team members encounter for this stimulation of this activity and open dialogue.

Servant leadership: This type of leadership mainly tends to focus on the growth and wellbeing of both people and communities from which they merely tend to belong. Traditional leadership mainly requires accumulation and exercise of power by the people on the top of the pyramid. Servant leadership is considered to be very much different. Servant leaders aims to share the first parameter which helps the people in delivering and performing large number of things.

From the above discussion, it can be easily stated that servant leadership can provide a large number of benefits like

• Empowering and developing people.  
• By expressing the humility.  
•  
• Stewardship
• By providing direction.

Conclusion 

The fact can be easily concluded that the report mainly deals with Australian Engineering works. It is considered to be an original equipment manufacturer more focused in plastic molding. It is provided in the different parts of the whole telecommunication industry. The organization has been providing quality services to its clients for more than 30 years. The customers of this organization mainly include various kind of telecommunication service provides. Due to emergence of new suppliers in the market, the competitors are providing much better kind of services. The senior management of AEW is very focused on recent development which is focusing on new ways to improve the service quality. AEW has successfully become as one of the most preferred brands of worldwide customers. For this effect, AEW has engaged this organization to provide some kind of advice on the given issues. The management team of AEW is focusing on some ways to provide required support for changing the whole situation. The management team of AEW wants to resolve their issues within three months.

Cause and Effect Diagram (Fishbone Diagram)

References 

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