Section 1: Module Introduction Section 2: Creating A Cause and Effect Matrix

Building a Cause and Effect Matrix
Section 1: Module Introduction

Section 2: Creating a Cause and Effect Matrix
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Section 1: Module Introduction

Introduction
Welcome to our module on creating a Cause and Effect matrix, also known as a C & E matrix.
A Cause and Effect matrix is often used to link the Critical to Quality aspects of your project to the Causes and
Effects of a problem you have already identified.
Critical to Quality aspects, also known as CTQs, are the factors that are recognized to be critical to customer
satisfaction and the success of the business. Critical to quality factors are most often related to low defects and
high-quality products and services.
The C&E Matrix is a very useful tool that can be used to prioritize these critical to quality factors that have the
highest impact on a process, and to choose the right ones for further measurement.
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Module Objectives
In this module, you will learn:
 How to create a C&E matrix.

 How to link potential inputs and process indicators to the output indicators and CTQs.
 How to prioritize and rank the factors that will be further measured in a project and the benefits of the
C&E matrix.
Let’s get started.
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Section 2: Creating a Cause and Effect Matrix

What is a C&E Matrix?
The C&E matrix represents a process by showing outputs, inputs and process indicators to help you figure out, in
a quantitative manner, which inputs and process indicators affect each output.
The inputs and outputs of a process are displayed in a table listing the inputs as rows and the outputs as columns.
Where they intersect, you make a numerical assessment as to how much effect each input has on each output.
In the next few slides, we’ll discuss and demonstrate how to make this numerical assessment and what to do with
the data once it’s been calculated.
C&E Matrices can be created in a variety of formats, but an Excel-type spreadsheet works best. A sample
template has been provided for you, and we’ll use this format to create a C&E matrix as we move through the
module. You may download the template to follow along with the course, or to use in future projects.
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Creating a C&E Matrix
When you construct a C&E matrix, it should be done in a brainstorming session with your team.
The first step in the construction of a C&E matrix is to list the outputs across the top of the form. These will
become the columns of the matrix. Remember these are usually customer-driven outputs, specified as CTQs.
Second, rank the outputs according to your customers’ priorities or levels of importance. Each output is ranked
against the others using a scale of 1 to 10. A higher value implies greater priority or more importance to the
customer.
Third, identify the process steps and inputs that contribute to the changes in your outputs. These are listed on the
left-hand side of the form and will become the rows of the matrix. The tough part begins at this point.
In step 4, you rank the potential contribution, or effect, of each input on each output. You will do this in the inside
body of the matrix where a row and a column intersect.
Finally, you prioritize the critical items using the value in the totals column. The values in the totals column are
calculated by multiplying each input by each output and adding those values across each row. Process steps and
inputs with the highest values are the areas you’ll want to investigate further.
Let’s take a look at an example.
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C&E Matrix Example – Document Inputs and Outputs
Have you ever applied for a loan from a bank? Perhaps you’ve wanted to buy a car or a house, or just needed
some extra money. Chances are, you’ve experienced this process as a customer. But have you ever thought
about the process once the loan application has been submitted? Let’s use this scenario to construct a C&E
matrix to help identify potential Xs that may play an important role in a bank’s loan decision process.
To create a C&E matrix for this process, we begin by identifying the customer requirements. Although many
companies are hesitant to ask for their customers’ input, please don’t be afraid to poll or survey your customers to
help you identify and rank these outputs. Doing so will only ensure accuracy in your efforts.
Let’s assume the bank conducts a customer survey and discovers that customers want fast and fair decisions.
They want a simple and easy-to-understand application. And during the entire process, they want the ability to
obtain updates on the status of their application.
Once we’ve identified the key outputs, we rank their importance. The bank’s survey also asked customers to rank
how important each requirement is, and these values have been calculated. Fast decision is most important, and
is rated a 9 on a scale of 1 to 10. Fair decision is next, and is rated a 7, simple application rates a 5; and frequent
updates, rated a 3, is determined least important by the bank’s customers.
Once we rank the customer priorities, we enter the key process steps into the C&E matrix. These process steps
are pulled directly from a process map, which identifies the key steps of the process you’re focusing on.
For each process step, we then enter the key inputs. For example, the application and its instructions are the
inputs to the complete application step. The completed application is an input to the “review application” step,
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and so on. A general category is also included to capture factors that may cut across all of the process steps.
Inputs such as training, policies, and scheduling are key inputs throughout the entire process.
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C&E Matrix Example – Ranking Inputs
Now that we have the structure of our matrix in place, we must gather the data. The fourth step is to fill in the
intersecting cells of the matrix. This is when you’ll want to assemble your team for a working session. For each
cell, ask the question, “How much of an influence does this input have on this output?” The answer to this
question must be described as a numerical value. These values typically run on a scale of 0 to 10.
However, most teams use discrete rankings of 0 for no effect, 1 for small effect, 3 for medium effect, and 9 for
major effect on an input on an output. For example, for the highlighted cell, we would ask, how much influence
does the process input of “Completed Application” have on receiving a fast decision? If the influence is significant,
the rating is high. In this case, the rating is a 9, suggesting a very high influence.
The completed application most likely has no effect on a fair decision or whether the application is simple, so we
note those cells as zeros. To complete this row, a completed application probably has a small effect on the ability
to receive frequent updates, so the team assigns a value of 1. The team continues to discuss each process step
and process input and fills in the rest of the matrix in a similar fashion.
Finally, we determine the relative significance of each process input by cross-multiplying the customer priority and
relationship rating, and then adding those numbers across each row. For example, let’s consider the input “credit
report.” To calculate its total, multiply 9 times 5 plus 7 times 9 plus 5 times 0 plus 3 times 0.
The total for credit report is 108. If you do this for each input variable listed in your C&E matrix, you will get a
ranking for each process step and key input. This is very powerful information. You have taken the knowledge of
a process team and quantified it numerically.
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Now we can sort the totals column so that we can address the most important input variables in our future
activities for process improvement. Based on this analysis, it appears as though training, policies, and the credit
report are all areas that should be explored in more detail. This is how we use a C&E matrix.
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Benefits of a C&E Matrix
There are three primary benefits of using a C&E matrix.
The first is that this tool allows for the numerical quantification of process input and output relationships. This
means you take the knowledge of process experts, and you quantify it.
Second, it allows you to identify the factors that are most important to your customers and rank them. And don’t
forget you should ask your customers for input whenever possible.
Finally, a C&E Matrix allows a project team to identify and agree on the most critical variables for further
investigation.
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Module Review
In this module you have learned:
 How to create a Cause and Effect matrix by linking process and input indicators to output measures.
 You have also ranked and prioritized the most important ones in order to determine which factors to
investigate further and you learned the key benefits of the C&E matrix.
The C&E matrix has proven to be a helpful tool in any project, and we hope you'll put it to good use!
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Building a Cause and Effect Matrix

Section 1: Module Introduction

Section 1: Module Introduction

In this module, you will learn:

 How to create a C&E matrix.

Let’s get started.

Section 2: Creating a Cause and Effect Matrix

Creating a C&E Matrix

Let’s take a look at an example.

C&E Matrix Example – Document Inputs and Outputs

C&E Matrix Example – Ranking Inputs

Benefits of a C&E Matrix

There are three primary benefits of using a C&E matrix.

In this module you have learned:

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