Root Cause Analysis: The 5 'Why's

1. Problem Statement:

1.1. The supplier failed to apply for an Export Permit, resulting in a shipment of 12 valves being held at Canada Border Services Agency (CBSA). This has caused a delay in delivery.

2. Why

2.1. Why was the shipment stopped?

2.2. XV's require Export Permit per CBSA

2.3. Because it contained high fluoride content (>35%), requiring an export permit.

3. Why?

3.1. Why was the export permit not applied for?

3.2. Supplier were unaware that the material requires Export Permit

3.3. Supplier was dependent on Manufacturer to inform for the requirement of Export Permit

4. Counter-Measure:

4.1. Establish internal Export Control Compliance (ECC) Program

4.2. Enforce supplier-manufacturer compliance agreements

4.3. Supplier training & automated permit verification

5. Why?

5.1. Why was the supplier dependent on Manufacturer?

5.2. Supplier is a trader and has no Export Control Compliance Program establish to classify the Products as per the Export Guidelines issued by Global Affairs Canada and CBSA

6. Why?

6.1. Why did the manufacturer not disclose the composition?

6.2. Lack of proper communication and compliance checks

7. Why?

7.1. Why were compliance checks missing?

7.2. This will be further evaluated - - Missing Export Control Compliance

7.3. Limited Resources for conducting the Product Classification as well as Transaction Classification