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ABC Foods: Root Causes Of Poor Performance

Decent Essays

Root Causes of Poor Performance Improving operations of a company to increase efficiency and revenue for the company is an ongoing task the company needs to deal with. Innovation and research to minimize cost and maximize revenue for the company is very important. But before this, they are very important for a company to understand what section of the operations needs improvement. Understanding the root causes of poor performance in that department/sector is very important. Pin pointing the cause will help the company understand the issue and rectify they. ABC Foods will utilize Failure Mode and Effect Analysis method to identify the potential failures, causes of those failures, and effects of the failure on the daily operation of the company. …show more content…

The trucks might face mechanical issues and may need to be brought to a mechanic. This can disrupt the daily operations of the company. Effects of the Failures: These issues can be very threating to the company. There is a possible chance the company might lose business due to these potential failures. The company can face the following effects due to these failures: 1. The company will not be able to deliver products/foods in the given timeframe. The restaurants will not be able to prepare their dishes in time due to the untimeliness of ABC Foods. ABC Foods can lose contracts their customers due to this untimeliness. 2. Having mechanical issues can be certain and will give the company a very short window of time to prepare accordingly. This can also result in untimeliness. Recommended Actions: ABC Foods should take the following actions to prepare themselves if they face potential failures mentioned above: 1. ABC Foods should research into the volume of delivery they need to take every day and how long each delivery will take. 2. ABC Foods should plan on a trial phase where they will record the volume of delivery each truck takes daily and how long each delivery takes. The company should also track their business requirement on a daily business. This will help the company decide whether they need to add more trucks to their fleet or

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