Why bother? Presented at the Ethical Sourcing Forum, March 2015

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Edith Cummings
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1 Why bother? Presented at the Ethical Sourcing Forum, March 2015 Sister Ruth Rosenbaum, TC, PhD Executive Director CREA Cell: Office:

2 Any supply chain, including sourcing, QA and social compliance, if done well, functions as a system. So what is a system? 2

3 Think of a car or a truck. There are many parts to the car or truck. Each part does something specific. The vehicle needs each part to function well in order for the vehicle to work properly 4/28/2015 3

4 Many parts Each part is important Each part must work properly Each component or part must be able to work together with the other components/parts. 4/28/2015 4

5 Where there is clutter without benefit Where flow can be impeded Where there can be a better way to do something Where there are wasted resources Other.? 4/28/2015 5

6 forms a SYSTEM. When systems work well, what we expect to accomplish happens. When they do not work well,..that is why we are here today. 4/28/2015 6

7 There is one core concern for any component in your sourcing, QA and compliance system at any level: Core Concern: Each component must be reliable so you can trust the results. 4/28/2015 7

8 We need to examine what is being done, why it is being done and how it is being done with the it changing as the work evolves. 4/28/2015 8

9 How do we learn to see and understand Sourcing, QA, and Compliance as a system How do we learn to think systemically? Because that is where true root cause analysis has its home. 4/28/2015 9

10 anything that is done affects everything else in the system The excellent The good The so so The not good The awful 4/28/

11 the things that are not done especially when they are supposed to be done. and are not done at all. Variation: Stuff that is not supposed to be done, IS done. 4/28/

12 Is not about the real root causes They are about problems that occur in supply chains on a semi regular basis Examples: And how to fix these problems 4/28/

13 Has been the common response to finding these problems The hope has been that these fixes will somehow stick and so we continue to find and fix the best we can 4/28/

14 No matter how we try, the changes we want to see stay in factories do not stick 4/28/

15 (no, not RICO but RICA) is what we call this at CREA RICA = Repetitive Immediate Cause Analysis 4/28/

16 But for others, we need to add the prevention component to finding and fixing. TO do this we have to look at causes. Some causes are obvious while others take exploratory analysis The Cui Bono (who benefits) component of things remains unfixed 4/28/

17 We need to move from find and fix to find, fix and prevent That is the heart of true root cause analysis! 4/28/

18 is about prevention 4/28/

19 It is about figuring out WHY things happen and then asking What needs to be done so these things do not happen again 4/28/

20 You and your team Sourcing, QA, Compliance others in the company Vendors Factory managers and supervisors 4/28/

21 Workers Yup, the workers who are there day after day and can be a huge source of ideas to improve on going problems, and negative situations, etc. 4/28/

22 are a resource, not merely something or someone to be protected by the system are a resource regarding both prevention and addressing a problem long term 4/28/

23 1. Is there a database where the results of audits are assembled and processed? 2. Are particular problems found in certain factories? with the production of certain groups of products? specific times of the year? related to the need for quick product? Or? 4/28/

24 Related questions: How did you establish production amount possibilities for each factory? Who in your company calculates production level possibilities (capacity) when orders are placed? What is the relationship of just in time ordering and just in time production to excessive overtime? 4/28/

25 Where and when does excessive overtime occur? What might provide the pressure for excessive OT? When an order is placed, how long does it take for the factory to get the necessary components for the product being made: Example: cloth, thread, buttons, etc. 4/28/

26 Who benefits from excessive OT? How do they benefit? 4/28/

27 Overtime is a way to earn more money, money often needed by the workers and their families But the low, inadequate wages paid is not an excuse for excessive OT. The wage issue needs to be dealt with also. 4/28/

28 And if excessive OT does not provide sufficient worker production time, then there is often the connection to another common problem: unapproved sub contracting which is another whole problem in itself even while connected to excessive OT 4/28/

29 Examples: Need to meet production goals Take a look at what is expected of us and our work. Do not want to lose contract, job, position, etc. Other? 4/28/

30 When is what happens a single event and when is it a pattern or repetitive events? When is it RICA, happening because of repeated causal action or process and when do we need Root Cause Analysis For any problem found, how do we assemble the components of the system which can affect that problem occurring? Example: Sourcing must understand the need to look at what will happen when an order is placed for items needed in a specific time frame, 4/28/

31 Please contact us as CREA: Or skype: Ruth.CREA We have developed materials and workshops for: -Companies at any level in your supply chains -Social auditors -Worker groups, and others 4/28/

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