5 WHY’S TOOL

Baricanosa, Alissa
Carreon, Zyra
Fausto, Ralph Jonathan
Limpiada, Razziel Daphne
Pablo, Clavel
Serrano, Rica Angelica
 INTRODUCTION
• 5 Whys is an iterative interrogative technique used to explore the cause-and-
effect relationships underlying a particular problem. The primary goal of the
technique is to determine the root cause of a defect or problem by
repeating the question "Why?" Each answer forms the basis of the next
question. The "5" in the name derives from an anecdotal observation on the
number of iterations needed to resolve the problem.
• Not all problems have a single root cause. If one wishes to uncover multiple
root causes, the method must be repeated asking a different sequence of
questions each time.
• The method provides no hard and fast rules about what lines of questions to
explore, or how long to continue the search for additional root causes. Thus,
even when the method is closely followed, the outcome still depends upon
the knowledge and persistence of the people involved.
 INTRODUCTION

• The 5 Whys uses "counter-measures," rather than solutions. A counter-

measure is an action or set of actions that seeks to prevent the problem
arising again, while a solution may just seek to deal with the symptom. As
such, counter-measures are more robust, and will more likely prevent the
problem from recurring.
 ORIGIN OF THE 5 WAYS
• Sakichi Toyoda, one of the fathers of the Japanese industrial revolution, developed
the technique in the 1930s. He was an industrialist, inventor and founder of Toyota
Industries. His method became popular in the 1970s, and Toyota still uses it to solve
problems today.
• Toyota has a "go and see" philosophy. This means that its decision making is based
on an in-depth understanding of what's actually happening on the shop floor, rather
than on what someone in a bedroom thinks might be happening.
• The 5 Whys technique is true to this tradition, and it is most effective when the
answers come from people who have hands-on experience of the process being
examined. It is remarkably simple: when a problem occurs, you drill down to its root
cause by asking "why?" five times. Then, when a counter-measure becomes
apparent, you follow it through to prevent the issue from recurring.
DR. EDUARDO ENRIQUE
GELBSTEIN
DR. EDUARDO ENRIQUE GELBSTEIN
(1940-2015)
Born in Buenos Aires
Graduate of Electronic Engineering in Argentina (1963)
Master’s Degree from Netherlands (1966)
Ph. D. from UK (1976)
Adjunct Professor
Top Manager in International Companies
Director of the United Nations International Computing Centre
Advisor, UN Board of External Auditors and French National Audit Office
IT Strategy Manager and Chairman of Business IT-Steering Group of
British Railways Board
DR. EDUARDO ENRIQUE GELBSTEIN
(1940-2015)
• 50 years experience in information technology
• Independent IT Consultant
• Author of books and articles (ISACA journal,
Information Insecurity, Good Digital Hygiene)
• Conference speaker
• Analog and Digital development
• Design of computer-based automated system
• Received Michael Cangemi Best Book/Article Award
(ISACA Journal)
HOW TO USE IT
 HOW TO USE IT
• Most useful when dealing with situations involving human factors or
interactions and where there are cultural barriers to revealing the true nature
of the problems
• Depends on a clear, complete and specific definition of problem under
review: “If this answer does not elucidate the root cause of the problem, it is
necessary to ask why again and continue this cycle until the root cause is
identified.
• Warning: Each time the why question is asked, the answer must be verifiable
by facts.
• The answer must cover things that have actually happened– not the things
that might have happened
 HOW TO USE IT

• Most effective when it is used to build a more sophisticated tool, e.g. cause
and effect (fishbone) diagram.
EXAMPLE 1
 WHAT IS ERP?
• Enterprise resource planning (ERP) is business process management software
that allows an organization to use a system of integrated applications to
manage the business and automate many back office functions related to
technology, services and human resources.

• ERP software typically integrates all facets of an operation — including

product planning, development, manufacturing, sales and marketing — in a
single database, application and user interface
 WHAT IS ERP?
• It’s a single system that integrates all the core processes needed to run a
company.

• This helps companies run more efficiently and better meet compliance
regulations.

• An ERP system cuts down on manual data entry and improves the flow of
information across the organization.

• ERP helps employees do their jobs more efficiently by breaking down barriers
between business units.
 TOP 10 REASONS OF ERP
IMPLEMENTATION FAILURE
1. Doing it in the first place.
Even before implementation, the company is the dilemma whether they really
require it or not.

2. No clear destination.
To be clear with the expectations. Once an organization makes the decision
to implement a new ERP system, the first step is to have a clear definition of
success.
 TOP 10 REASONS OF ERP
IMPLEMENTATION FAILURE
3. A good plan or just a plan?
A detailed plan is very necessary for successful implementation. All projects of
this size start with some kind of plan.

4. Part-time project management.

A person experienced in project management makes a lot of difference.
 TOP 10 REASONS OF ERP
IMPLEMENTATION FAILURE
5. Under-estimating resources required.
Most common blunder to happen is with resources projected. Having a solid
understanding of the internal and external resources needed to complete the
project is critical.

6. Over-reliance on the consultants.

Too much dependability on consultant can make the team more redundant.
 TOP 10 REASONS OF ERP
IMPLEMENTATION FAILURE
7. Customization.
This aspect makes it or breaks it for an ERP tool. Most companies these days
understand that customizing their ERP system adds risk, time, and cost to the
project.

8. On the job training.

Experience makes a lot of difference. The typical lifespan an ERP system within
an organization is 10 to 12 years.
 TOP 10 REASONS OF ERP
IMPLEMENTATION FAILURE
9. Insufficient testing.
It should be treated as rectifying stage. When schedules get tight, reducing
the number and depth of test cycles is one of the first areas that often get cut

10. Not enough user training.

The management shouldn’t hurry to start using the tool without adequate
training to users.
 EXAMPLE 1: DELAYED PROJECT
This was uncovered in one of several audits of a large enterprise resource
planning (ERP) implementation project that extended over several years.

Diagnosis 1: The managing director has a “saving money regardless of cost”

(SMRC) attitude, as there is an unwillingness to fund training or the required
level of remuneration for the job in question.
 EXAMPLE 1: DELAYED PROJECT
Diagnosis 2: The team structure for the project was weak from the outset as
there was no adequate backup for the critical role of project manager.

Consequence: No action was taken on these issues and the project became
even more delayed and costly. By the time the project was completed, the
ERP was obsolete and the organization is now working to replace it.
 AVON
• In 2013, Avon’s $125 million SAP enterprise resource planning project failed
after four years of work, development and employee testing. After rolling out
the system for testing in Canada, the door-to-door makeup giant reported
that the technology had provided extra work for its critical sales
representatives, rather than easing their number of tasks as the technology
had been designed to do. This then understandably discouraged the reps
from utilizing the system in the regions in which Avon tested, and the makeup
seller lost its reps in droves. After they got word of the software's failure to
perform adequately in Canada, Avon discontinued the rollout across the
rest of the country and called off any further work with the enterprise
software. The software was kept on in Canada to avoid any further
disruption to the company’s services, but the rest was binned, costing Avon
a pretty penny.
 AVON
• ERP software can brag all it wants about functionality and all of the magical
modules and apps you can use to make your business processes easier, but
that won’t mean anything if your software isn’t actually usable. It’s all about
the business processes, not the software after all, and if you can’t get staff to
use your ERP, they won’t be carrying out the processes necessary to keep
your business running. Make sure your employees are properly trained and
transitioned into the new software, and that they want to use that system in
the first place.
 WASTE MANAGEMENT’S TRASHED
SYSTEM
• Waste Management began an 18 month installation process in 2005 that
turned into a $100 million dollar legal battle which has been going on since
2008. Waste Management filed suit against SAP executives who apparently
participated in fraud leading to a massive ERP implementation failure.
 WASTE MANAGEMENT
• Waste Management signed onto an 18-month ERP implementation deal with
SAP that ended in disaster and was dragged out for years after the project’s
original 2005 start date. WM struggled with the project so badly that they
ended up in court, claiming they had been duped by the SAP sales team
and a flashy demo that never ended up materializing. Not one to take the
punches quietly, SAP counterclaimed that the project failure had been
entirely due to WM and their inability to provide key information and
knowledgeable employees to the project. The case was only settled in 2010.
Safe to say, it did not provide the improvements or time-saving benefits that
the ERP had originally intended to.
 WASTE MANAGEMENT
• Communication, communication, communication. It can be an incredibly
smart decision to go with an outside partner for an ERP project, but you
need to make sure that both parties know the project you are embarking
on. You need to stack your project team with experts from both your team
and your consulting partner’s line-up. Make sure you grill your potential
consultants, and that they are up to speed with your project and have the
experience it will take to complete it successfully. Ask for references, get a
timeline, and make sure you have full confidence in your partners before you
sign anything.
 HEWLETT PACKARD’S DISASTER
• While it is not uncommon for small disasters or issues to occur during the
rollout of a new ERP system, total ERP implementation failure can occur
when too many of these little issues occur all at once. Moving all of the
company’s North American divisions into a single centralized ERP system
ended up costing the company $160 million dollars in backlogged orders
and lost revenues, more than five times what the project was estimated to
cost in 2004.
 HEWLETT PACKARD’S
• This project failure may have happened way back in 2004, but there are still lessons
to be learned from Hewlett-Packard’s disastrous attempt at an implementation of
multiple enterprise systems across their many offices. As the HP CIO at the time, Gilles
Bouchard later mentioned that the failure could largely be attributed to an
accumulation of problems. As they attempted to transition a region into a simplified
group of ERP applications, they found that communication between both teams
and software broke down. As multiple silos worked individually and legacy software
systems lost data in the transition, increased demand put entirely too much pressure
on the whole ordeal. The failed project cost HP over $160 million—quite a chunk of
change for a product meant to overhaul business processes and drive costs down.
 HEWLETT PACKARD’S

• In any ERP project, you need to plan for problems. Bouchard noted that HP
should have made a “contingency plan for four, five or six weeks," indicating
that the company was clearly not prepared to deal with such a buildup of
problems along with increased demand for their products in that time frame.
Make sure you learn from the company’s mistake.
EXAMPLE 2
 FAILURE TO IDENTIFY CASH FLOW
STATEMENT MISCLASSIFICATION

1. Why has a failure to identify cash flow statement misclassification?

The audit staff member performing the work did not practice due care or
there was a lack of understanding of the subject matter.

2. Why was there a lack of understanding of the subject matter?

There was a lack of direction/supervision/motivation and late/inadequate
documentation because of time pressure.

3. Why was there a lack of supervision and late documentation?

Fee pressure/resource shortage and poor project management.
 FAILURE TO IDENTIFY CASH FLOW
STATEMENT MISCLASSIFICATION
4. Why has poor project management?
Inexperienced senior manager.

5. Why was he not sent to a training course?

The audit partner did not provide training/guidance and did not apply his
time to supervise the manager.
LIMITATIONS OF THE 5 WHYS
APPROACH
 LIMITATIONS

1. Using 5 Whys doesn’t always lead to root cause identification when the cause is unknown.
2. An assumption underlying 5 Whys is that each presenting symptom has only one sufficient cause. This is
not always the case and a 5 Whys analysis may not reveal jointly sufficient causes that explain a symptom.
3. The success of 5 Whys is to some degree contingent upon the skill with which the method is applied; if
even one Why has a bad or meaningless answer, the whole procedure can be thrown off.
4. The (5 Whys) method isn’t necessarily repeatable; three different people applying 5 Whys to the same
problem may come up with three totally different answers.
In order to overcome the limitations of 5 whys, the following questions must be ask:

1. Who knows? (Who has some, if not most, of the relevant ibformation?)
2. Who cares? (Who cares enough so that something is done aboutbit?)
3. Who can? (Who can implement a solution?)