06 Organisational planning tools

THE FISHBONE DIAGRAM

H HIGHER LEVEL
Decision-making approaches and
techniques
Table 6.1 compares the benefits of scientific and intuitive
decision-making.
Intuitive decision-making
● Less time consuming than a
scientific approach – could
be an advantage in a fast-
changing market situation
where a rapid decision is
needed.
● Less costly than a scientific
approach – no expense of
collecting and analysing data,
use of expert consultants,
etc. This might be a particular
advantage to a small business
with limited resources.
● Innovative or non-standard
situations, e.g. technology
advances, may not have
relevant data available on
which to base a ‘scientific’
solution.
KEY TERM
fishbone diagram a visual identification of many potential
causes of a problem
The fishbone diagram – also known as a cause-and-effect
diagram or an Ishikawa diagram – may be used to analyse
a problem or situation. An example is given in Figure 6.2,
Scientific decision-making
and is based on a brainstorming session where a team is
● Based on a formal attempting to establish all of the possible causes of iron
structure – less likely that
contaminating a food product.
important points will be
In this example, six main causes of the problem of iron
missed in gathering data
and assessing options.
in the product were identified. These are the most common
● Based on analysis of data,
main ‘bones’ that feature on the fishbone diagram. They
e.g. market research, are sometimes called the 6Ms:
costings, future returns.
The final decision is likely ● Methods – are the bottles used clean?
to have a greater chance ● Machines – are there rusty pipes in the production
of success than one based machines?
purely on intuition. ● Manpower – is it skilled enough?
● When risks are high or cost ● Materials – are the raw materials to blame?
is substantial it might be ● Measurement – is the calibration incorrect?
considered irresponsible for ● ‘Mother nature’ (the environment) – is the working
a senior manager to base
environment contaminated?
decisions on ‘gut feelings’.
Table 6.1 Benefits of intuitive and scientific decision-making

Measurement Materials Methods

Lab error Raw materials Analytical procedure

Supplier City Supplier 1
Ca

No
Ca

An
Im
cal ation

AK

libr
DB
libr

H2
aly
pro

t fo
ibr

Truck plant Supplier 2

W-
O
T
st

atio
atio

pe

llow
2

System
r

n
n

ed

Solvent contamination Lab solvent contamination Sampling

Dir
Su
In

Su

Iro
In

pp
pp
lab

nt
lab

ty
lie
lie

bo

oo
r
r

ttle

ls

Iron in
s

Rust near product

sample point Inexperienced Rusty pipes
analyst
At

At
ls
e

In
pip

Too

Materials of construction
sa

rea
mp
sed

cto

Maintenance P584 Out

le p
o

D2
s

es
Exp

E583 P560
rs

mp
es

oin
Pip
o
ls
s

ang

W3
act
line

P573
Pu
oo

Heat exchange leak

Re
nt

E470
ing

Exc
Iro
en

E4

E5
Op

70

83

Environment Manpower Machines

Figure 6.2 Example of a fishbone diagram

Source: Nancy R. Tague (2004) The Quality Toolbox (ASR Quality Press, 2nd edition)
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