8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 1/17

Cause-and-Effect Diagram

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 2/17

What is it?

An analysis tool thatprovides a systematic way

of looking at effects and

their respective causes

Developed by Dr. KaoruIshikawa of Japan in 1943

and is sometimes referredto as an Ishikawa Diagram

or a Fishbone Diagrambecause of its shape

> WHY IMPLEMENT THIS? >

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 3/17

Why implement this?

It helps determine the rootcauses of a problem using a

structured approach.

It encourages group

participation and utilizesgroup knowledge of the

process. It uses an orderly, easy-to-

read format to diagramcause-and-effect.relationships

It indicates possible causes ofvariation in a process.

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 4/17

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 5/17

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 1 >

Submission of Billing to Client

Receive update of

newly issued billings

Find and update clients·

billing statements

Locate included

clients· file folders

File folders

Call each clienton update

Buyers·

Information Sheet

Send Billing Statements

Locate included clients·

Buyers· Information Sheet

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 6/17

STEP 1:

Decide on the effect to beexamined.

An effect may be positive (an

objective) or negative (a problem),depending upon the issue that is

being discussed.

Identify and clearly define theoutcome or EFFECT to be analyzed.

>P

OSITIVE

 ² pride and ownership over productive areas ² upbeat atmosphere that encourages the participation of the

group

> NEGATIVE

 ² justifying why the problem occurred and placing blame

 ² easier for a team to focus on what causes a problem than whatcauses an excellent outcome

 ² concentrate on things that can go wrong may foster a more

relaxed atmosphere which sometimes enhances groupparticipation

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 2 >

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 7/17

STEP 2:

Draw a horizontal arrow pointing to theright. This is the spine.

To the right of the arrow, write a briefdescription of the effect or outcome

which results from the process.

Draw a box around the description of the

effect.

Draw the SPINE and createthe EFFECT box.

> CAUSE-AND-EFFECT DIAGRAM , updated with STEPS 1 & 2 >

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 8/17

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 3 >

InaccurateSubmission of

Billing to Client

Effect Box

Spine

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 9/17

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 10/17

Materials

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 4 >

InaccurateSubmission of

Billing to Client

Methods People

Machinery

 Main Cause s

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 11/17

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 12/17

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 5 >

Materials

InaccurateSubmission of

Billing to Client

Methods People

Machinery

Ignorance

People fail to informclient thru call/e-mail

Unreliablemail system

Erroneous

sortingof billing

statementsInvalidlist ofupdates

Phone linedisconnected

ErroneousInformationin BIS

No file for record of billing

statementsin clients·

folders

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 13/17

STEP 5:

You can do this by asking a

series of WHY questions.

Identify more detailed levels ofcauses and continue organizing them

under related causes or categories.

FROM GIVEN EXAMPLE:Q: Why is there an invalid list of updates?

A: Because the data was mixed up.

Q: Why was the data mixed up?

A: There was a problem with the manual organization of the files.Q: Why is there a problem with the manual organization

of the files?

A: Because there are no back-up files and since it was

manually prearranged, inaccuracy is inevitable.

> CAUSE-AND-EFFECT DIAGRAM , updated with STEPS 1, 2, 3, 4 & 5 >

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 14/17

> PUTTING ¶CAUSE-AND-EFFECT· DIAGRAM· TO TEST: STEP 6 >

Materials

InaccurateSubmission of

Billing to Client

Methods People

Machinery

Ignorance

People fail to informclient thrucall/e-mail

Unreliablemail system

Erroneoussorting

of billingstatements

Invalidlist ofupdates

Phone linedisconnected

ErroneousInformation in BIS

Assorted recordsof billing

statements

in clients· folders

Mixed updataInaccuracy

insortingdata

Manual fileorganization

Poor training

Mixedup data

InaccuracyIn sorting

dataIgnorance

Wrong phone number/e-mail information Erroneous info

in BIS

Inaccuracy insorting data

Manual fileorganization

No training

Manual fileorganization

Skipping payingmonthly bills

Poor training No

money

Inaccuracy in sortingand giving out mail

Manual file system

Mixedup data

Inaccuracy insorting data

Manual fileorganization

Mixedup data

Inaccuracy insorting data

Manual fileorganization

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 15/17

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 16/17

8/7/2019 Cause and Effect+Diagram

http://slidepdf.com/reader/full/cause-and-effectdiagram 17/17

ANALYSIS ²The level of detail is well-balanced.

 ²The causes poor/no training and

manual file organization/system arerepeated several times.

 ²These causes stated above are the

ones that should be attended to andgiven action on ASAP.

RECOMMENDED SOLUTIONS: ²Poor/No Training -> Give tutorials and

seminars to new and old employees alike.Have people check employees·

performances every once in a while. ²Manual File System -> Have a computer-

based information system to maintain theorganization. It will not only give you back-

up files but make the system work faster.Make sure it is maintained and updated atall times.