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Fishbone Diagram When you need to know the cause and effect of a problem

The Fishbone Diagram was developed by Professor Kaoru Ishikawa and is so named because it resembles the skeleton of a fish. It is especially helpful in structuring a process to identify possible causes of a problem. The method provides consideration of a problem from both a full-scope and in-depth perspective. Importantly, the interrelationships of major management areas and trends can be factored into problem solving.

The Fishbone can be done effectively by an individual, but it lends itself even better to a group or team process.

A team can be further enhanced by attention to cross functionality (e.g., have folks from Finance, Marketing, HR, etc.). It also lends itself to multiple meetings as well as a single, intense brainstorming session.

The problem statement is written in the box at the left.

Diagonal lines are drawn, each representing a major category of potential causes. The categories will vary according to the nature of the problem statement, but taken together, the categories capture the domain of the potential causes.

Once the group has agreed on the comprehensive major categories, members brainstorm potential causes within each category. The rules of brainstorming are followed.

Next, the group brainstorms the causes the members have identified. The process continues until the group has identified the root cause of each initial cause.

After potential root causes have been identified, the group may need to collect information to determine which, if any, of the causes are relevant.

If the group has identified the problem statement satisfactorily, the Fishbone diagram builds naturally, simply by repeating the question: “What is a potential cause of the problem?” However, if the group has incorrectly defined the problem, the Fishbone technique may be frustrating.

Marketing

Information TechnologyOperations

Finance

Lack of Start-Up

OR

Growth Capital

Under payment of taxes

Ill-timed dividends

Exchange rate fluctuations

Increased competition

Upgrade of hardware

Cost of ERP

Supply line breakdown

Machinery obsolescence

Staffing

Government actions

Overtime payments

External Resources

Litigation defense

Securing patents

EFFECT

Causes

Cause & Effect

Fishbone Diagram(using key management areas)

Over-trading/expansion

Material cost changes

Cost of web presence

Benefits

Profit margin erosion