Cause-and-Effect Diagram

What is it?
• An analysis tool that
provides a systematic way
of looking at effects and
their respective causes
• Developed by Dr. Kaoru
Ishikawa of Japan in 1943
and is sometimes referred
to as an Ishikawa Diagram
or a Fishbone Diagram
because of its shape > WHY IMPLEMENT THIS? >
Why implement this?
• It helps determine the root
causes of a problem using a
structured approach.
• It encourages group
participation and utilizes
group knowledge of the
process.
• It uses an orderly, easy-to-
read format to diagram
cause-and-effect.
relationships
• It indicates possible causes of
variation in a process.
Why implement this?
• It increases knowledge of the
process by helping everyone
to learn more about the
factors at work and how they
relate.
• It identifies areas where data
should be collected for further
study.

> EXAMPLE OF A BUSINESS PROCESS >

 Submission of Billing to Client
Receive update of Locate included
newly issued billings clients’ file folders

File folders

Find and update clients’

billing statements

Locate included clients’ Buyers’

Buyers’ Information Sheet Information Sheet

Call each client Send Billing Statements

on update

> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 1 >

STEP 1:
Identify and clearly define the
outcome or EFFECT to be analyzed.
>POSITIVE
• Decide on the effect to be
– pride and ownership over productive areas
examined.
– upbeat atmosphere that encourages the participation of the
group
• An effect may be positive (an
> NEGATIVE
– justifying why the problem occurred and placing blame
objective) or negative (a problem),
– easier for a team to focus on what causes a problem than what
depending upon the issue that is
causes an excellent outcome
– concentrate on things that can go wrong may foster a more
being discussed.
relaxed atmosphere which sometimes enhances group
participation
> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 2 >
STEP 2:
Draw the SPINE and create
the EFFECT box.
• Draw a horizontal arrow pointing to the
right. This is the spine.
• To the right of the arrow, write a brief
description of the effect or outcome
which results from the process.
• Draw a box around the description of the
effect.
> CAUSE-AND-EFFECT DIAGRAM , updated with STEPS 1 & 2 >
 Spine

Inaccurate
Submission of
Billing to Client

Effect Box

> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 3 >

STEP 3:
Identify the main CAUSES contributing
to the effect being studied.
• Write themain
Establish maincauses,
categories your team
or categories, has
under
which
selectedother
to possible causes
the left of will bebox.
the effect listed.
Draw
– 3Ms some
and P above andMaterials,
– Methods, below the spine.
Machinery,
• Draw and People
a box around each category label
– 4Psuse
and – Policies, Procedures,
a diagonal line to People,
form a and
Plant from the box to the spine.
branch
– Environment
> CAUSE-AND-EFFECT DIAGRAM , updated with STEPS 1, 2 & 3 >
Methods People

Inaccurate
Submission of
Billing to Client

Main Causes

Machinery Materials

> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 4 >

STEP 4:
For each major branch, identify other
specific factors which may be the
CAUSES of the EFFECT.

• Identify as many factors or causes

possible and attach them as sub-
branches of the major branches.
• Fill in detail for each cause.

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

 Methods People

Erroneous
sorting People fail to inform
of billing client thru call/e-mail
Invalid statements
list of
updates Ignorance
Inaccurate
Submission of
Erroneous Billing to Client
Information
Unreliable in BIS
mail system No file for
Phone line record of billing
disconnected statements
in clients’
folders

Machinery Materials

> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 5 >

STEP 5:
Identify more detailed levels of
causes 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.
•You can do this by asking a
Q: Why was the data mixed up?
A: There was a problem with the manual organization of the files.
series of WHY questions.
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 >

 Methods People Inaccuracy in
sorting data
Manual file
Erroneous Wrong phone number/ organization
Mixed up sorting e-mail information Erroneous info
Inaccuracy data of billing
Poor in BIS
in statements People fail to inform
Inaccuracy training client thru
sorting
data In sorting call/e-mail
Mixed data No training
up data Ignorance
Invalid Ignorance
Manual file list of
organization updates Manual file Inaccurate
organization
Submission of
Erroneous Billing to Client
Information in BIS
Skipping paying
monthly bills Inaccuracy in
Poor sorting data
Mixed
training No Unreliable up data
money
Phone line mail system
Assorted records
disconnected of billing
Manual file system
statements
Inaccuracy in sorting Manual file in clients’ folders
and giving out mail organization Inaccuracy in
sorting data
Mixed
Manual file
Machinery Materials up data
organization

> PUTTING ‘CAUSE-AND-EFFECT’ DIAGRAM’ TO TEST: STEP 6 >

STEP 6:
Analyze the diagram.
•– ItAhelps
•Look thick identify
for cluster causes
causesofthat in that
appear
items warrant
one repeatedly.
area may
Theseindicate
further may arepresent
need for further
investigation. study.
root causes.
•– Use
•LookA main category
aforpareto
what you
charthaving
can only a few
to measure
determine specific
in each
the
causecauses sotomay can
you indicate a need
quantify thefor furtherof
effects
cause focus on first.
any identification
changes of causes.
you make.
•– See the “balance” of your diagram,
If several major branches have only a few
•Most
checking importantly,
for identify and
comparable circle
levels of the
sub-branches, you may need to combine
causes
detail that
for you can
most of take
the action on.
categories.
them under a single category.

> CAUSE-AND-EFFECT DIAGRAM , completed >

 Methods People Inaccuracy in
sorting data
Manual
Manual file
file
Erroneous Wrong phone number/ organization
organization
Mixed up sorting e-mail information Erroneous info
Inaccuracy data of billing Poor
Poor
in BIS
in statements training
training People fail to inform
sorting Inaccuracy client thru
data In sorting call/e-mail No training
Mixed data No training
up data Ignorance
Invalid Ignorance
Manual file list of
Manual file
organization
organization updates
Manual file
Manual file Inaccurate
organization
organization
Submission of
Erroneous Billing to Client
Information in BIS
Skipping paying
monthly bills Inaccuracy in
Poor
Poor sorting data
training Mixed
training No Unreliable up data
money
Phone line mail system
Assorted records
disconnected of billing
Manual
Manual filefile system
system
statements
Manualfilefile
Inaccuracy in sorting Manual in clients’ folders
and giving out mail organization
organization
Inaccuracy in
sorting data
Mixed
Machinery Materials up data Manual
Manual file file
organization
organization

> RECOMMENDATIONS from completed CAUSE-AND-EFFECT DIAGRAM >

 RECOMMENDED SOLUTIONS:
ANALYSIS
–Poor/No Training -> Give tutorials and
seminars
–The leveltoofnew and isold
detail employees alike.
well-balanced.
Have people check employees’
–The causes poor/no
performances every once training and
in a while.
manualFile
–Manual fileSystem
organization/system
-> Have a computer- are
repeated
based informationseveralsystem
times.to maintain the
organization.
–These causes It will not only
stated abovegive are
you the
back-
up
ones filesthat
but make
shouldthe besystem work faster.
attended to and
Make sure it is maintained and updated at
given action on ASAP.
all times.