CAUSE EFFECT DIAGRAM

Sandeep Singh Roll No. S8025

CAUSE - EFFECT DIAGRAM

A Cause-Effect Diagram is an effective investigative tool for pictorially representing the various theories about the causes that result in a specific effect. This diagram was introduced by Kaoru Ishikawa in 1943 at the Kawasaki Iron Works, Japan. Some of the power in a cause-effect diagram is in its visual impact. Observing a few simple rules will enhance the impact.

CAUSE EFFECT DIAGRAM

ALSO KNOWN AS 1. THE ISHIKAWA DIAGRAM 2. FISH BONE DIAGRAM 3. TOKUSEI YOIN-ZU (characteristics diagram in Japanese) 4. GODZILLA BONE GRAPH.

Step 1:

Define clearly the effect or symptom for which the cause must be identified

+ The effect must be defined in writing. + For additional clarity it may be advisable to spell out what is included and what is excluded. + If the effect is too general a statement, it will be interpreted quite differently by the various people in the team. + The contribution of the team members will then tend to be diffused rather than focused. + They may bring in considerations that are irrelevant to the problem at hand.

Step 2: Place the effect or symptom at the right, enclosed in a box.

LOST CONTROL OF CAR

Step 3: Use brainstorming or a rational step-bystep approach to identify the possible causes.
There are two possible approaches to obtaining team members contributions for the causes to be placed on the diagram: Brainstorming and a rational step-by-step approach.
The team or its leadership will need to make a choice based on their assessment of the particular teams readiness.

1.
2.

 Brainstorming would normally be indicated for a team with a few individuals who are likely to dominate the conversation in a destructive manner or for a team with a few individuals who are likely to be excessively reserved, and not make contributions. Also, brainstorming may be best in dealing with highly unusual problems where there will be a premium on creativity. If one uses brainstorming to identify possible causes, then once the brainstorming is completed, the team will need to process the ideas generated into the structured order of the cause-effect diagram. This processing will take place in much the same way as described below for the step-bystep procedure, except that the primary source of ideas for inserting in the diagram will come from the list already generated in brainstorming rather than directly from the team members.

 Quality improvement project teams often find it helpful to start with some simple mnemonic lists of possible major areas to remind them of the many possible sources of causative factors. These lists are characterized as the 5Ms in manufacturing and the 5Ps in services, or as the 4Ws as follows:
5Ms 5Ps 4Ws

Manpower Material
Methods

People (employees) Provisions (supplies)

Procedures

What Why
When Where

Machines Place (environment) Measurements Patrons (customers)

 These are just helpful places to start. Often the team will start with one of these sets of categories and, after a while, rearrange the results into another set of major areas that fit its particular problem more appropriately. After identifying the major causes, the team will select one of them and work on it systematically, identifying as many causes of the major cause as possible. Then the team should take each of these secondary causes and ask whether there are any relevant causes for each of them. The team should continue to move systematically down the causal chain within each major or secondary cause until that one is exhausted before moving on to the next one. Once the team has moved on, ideas may surface that should apply to an area already completed. Naturally, the team will want to backtrack and add the new idea.

 Step 4: Each of the major causes (not less than 2 and normally not more than 6) should be worked in a box and connected with a central spine by a line at an angle of about 70 degrees
Here as well as in subsequent steps, it has proved useful to use adhesive notes to post the individual main and subsidiary causes about the main spine. Since these notes can be easily attached and moved, it will make the process more flexible and result easier for the participants to visualize.

 Step 5: Add causes for each main area

Each factor that is a cause of a main area is placed at the end of a line that is drawn so that it connects with the appropriate main area line and is parallel with the central spine.

Step 6: Add subsidiary causes for each cause already entered

Keeping the lines parallel makes reading easier and the visual effect more pleasing. Clearly, when one is actually working on C-E diagram in a team meeting, one can not always keep the lines neat and tidy. But, in the final documentation, teams have found that using parallel lines with random orientation is harder to read and looks less professional.

 Step 7: Continue adding possible causes to the diagram until each branch reaches a root cause
As we construct a C-E diagram, we move back along a chain of events that is sometimes called causal chain. We move from the ultimate effect we are trying to explain, to major areas of causation, to cause within each of those areas, to subsidiary causes of each of those, and so forth. But when do we stop? We should stop only when the last cause out of the end of each causal chain is a potential root cause.

 A root cause has three characteristics that will help us know when to stop.
First, it causes the event we are seeking to explain - either directly or through sequence of intermediate causes and effects. Second, it is directly controllable. That is, in principle, we could intervene to change the cause. Third, and finally, as the result of the other two characteristics, if the theory embodied in a particular entry diagram is proved to be true, then the elimination of potential root cause will result in the elimination or reduction of the problem effect that we are trying to explain.

 Step 8: Check the logical validity of each causal chain

Once the entire C-E diagram is complete, it is wise to start with each potential root cause and read the diagram in a direction towards the effect being explained. Be sure that each causal chain makes logical and operational sense.

 Step 9: Check for completeness. + Check for the following:

. Main branches with less than 3 causes . Main branches which have significantly less causes than the other branches. . Main branches that are less detailed, i.e. fewer sub-causes, than other branches. The existence of any of these conditions does not mean that there is a defect in the diagram; it merely suggests that further investigation is warranted. In such circumstances, it is advisable to check if the 5Ms, 5Ps or 4Ws have been considered, as appropriate. Also, if the diagram is too concentrated on one cause, see if you can redefine or split the cause into other categories.

 WHEN TO USE C-E DIAGRAM

Formulating theories:

The chief application of the cause-effect diagram is for the orderly arrangement of theories regarding the problem being tackled.
The C-E diagram gives a pictorial representation of this relationship and helps identify those theories which should be tested.

 POTENTIAL PITFALLS
The C-E diagram should not be treated as a substitute for data. The C-E diagram should be drawn only after preliminary data has been collected to narrow down the focus of a problem. Do not limit yourself just to those theories that you have in the diagram.

 WHAT COMES AFTER C-E DIAGRAM

Data collection, of course.

Select one or more theories regarding the cause of a particular problem. Then collect data to verify each of those theories.

NIKE IMPLEMENTED CAUSE AND EFFECT ANALYSIS TO TACKLE THE PROBLEM

CAUSE and EFFECTS The sweatshop working conditions that seemed endemic in developing nations. One of the reasons for the disconnect between a companys code of ethics and what happens among its suppliers is that suppliersand even boards of directorsoften are seen as external to the company They started conducting a supply chain audit to understand the actual practices and then to identify needed changes.

 Monitoring is valuable but, like an audit, it only points out discrepancies and resolves incidents Many of the major suppliers are working very, very hard on understanding what they need to do to comply with social responsibility codes, but many also feel that complying actually increases costs and decreases efficiency. So, they are reluctant to comply. Lack of freedom of association and collective bargaining, harassment, excessive working hours, inaccurate or nonpayment of wages and health and safety issues. That pressure, in turn, contributed to many other problems, such as poorer quality, more accidents and increased overtime. Nikes audit found the reasons for excessively long work hours among its suppliers were poor application of local laws, flawed factory management approaches and upstream business processes that caused extra work.

 There are other issues, too, of course, such as delays from other suppliers, production bottlenecks or acts of nature like the hurricanes that hit Mexico last September. These all increase overtime if the production schedule lacks the flexibility to absorb such delays. GOAL: Its goal was systemic change for both its suppliers and the entire industry. ROOT CAUSE ANALYSIS Why there were facing a problem of delayed shipment from its suppliers. Why because suppliers were not able to fulfill demand from the suppliers on time. Why because their production was slow and gets delayed most of the time.

 Why because of the tremendous and excessive unrealistic pressure from their clients like Nike. Why because of the sweat shop culture in their factories. why because in order to meet gigantic expectations from their clients they had to look for productivity neglecting the poor conditions of the workers, their long working hours, corporate social responsibility, no safety and many more. Why because of no proper HUMAN RESOURCE DEVELOPMENT. Why because suppliers think that this is just waste of time and money so they do not comply with it. Why suppliers think that this will increase their cost and decrease their productivity. Why because Nike did not tried to go to their suppliers and ask their problems. They did not take their suppliers problems as their own problems. Why because they think their suppliers as separate entity.

 Steps taken by NIKE Nike has become a business ambassador, teaching suppliers that regardless of their location or local operating environment it makes good business sense to treat their workers fairly. Suppliers, for their part, increasingly understand that the benefits of ethical practices can enhance their own bottom lines, through expanded markets, better quality, more business and increased revenues. Increased innovation through freedom of association, plus a more prosperous workforce and a more robust local economy are icing on the cake. By working with its suppliers rather than dictating them, Nike really is changing the world, one factory at a time.