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
pride and ownership over effect
productive to
areasbe
– 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
easier for a team to negative
focus on what causes(aa problem than
problem), depending
what causes an excellent outcome
upon the
– concentrate on things that can go wrong may foster a more
issue that iswhich
relaxed atmosphere being discussed.
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.
• Establish
Write themain
maincauses, or categories,
categories your team under
which other possible
has selected to thecauses
left ofwill
the beeffect
listed.
– 3MsDraw
box. and P some
– Methods,
aboveMaterials,
and below the
Machinery, and People
spine.
– 4Ps – Policies, Procedures, People, and
• Draw a box around each category label
Plant
and use a diagonal line to form a
– Environment
branch from the box to the spine.
> 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

Q: Why was the data mixed up?
A: There was a problem with the manual organization of the

a series of WHY questions.

files.
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
sorting Inaccuracy training client thru
data In sorting call/e-mail
Mixed data No training
up data Ignorance
Invalid Ignorance
Manual file list of
organizationupdates 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.
•–Look
ItA helps
thick
for cluster
causes
identifyofthat
items
causes in that
appear onerepeatedly.
area may
warrant
indicate
These
furthermay arepresent
need for further
investigation. study.
root causes.
•–Look
A main
Use afor category
what you
pareto having
chart can only a few
to measure
determine in the
each
specific
cause so causes
you can may indicate
quantify the aeffects
need forof
cause to focus on first.
any further
changesidentification
you make. of causes.
•– See the “balance” of your diagram,
If
•Most several major branches have only a few
importantly,
checking for identify and
comparable circle
levels of the
sub-branches, you may need to combine
causes
detail that
for you can
most of takecategories.
the action on.
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
training in BIS
in statements 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
Manual file list of
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 sorting data
Poor
training Mixed
training No Unreliable up data
money
Phone line mail system
Assorted records
disconnected of billing
Manual
Manual file
file system
system
statements
Inaccuracy in sorting Manualfile
Manual file in clients’ folders
organization
organization
and giving out mail Inaccuracy in
sorting data
Mixed
Machinery Materials up data Manual
Manual filefile
organization
organization

> RECOMMENDATIONS from completed CAUSE-AND-EFFECT DIAGRAM >

 RECOMMENDED SOLUTIONS:
ANALYSIS
–Poor/No Training -> Give tutorials and
seminars to new and old employees alike.
–The level of detail is well-balanced.
Have people check employees’
–performances
The causes every poor/no
oncetraining and
in a while.
manual
–Manual file
File organization/system
System -> Have a computer- are
based
repeatedinformation
severalsystem
times. to maintain the
organization. It will not only give you back-
–up
These causes
files but makestated above
the system workare the
faster.
ones sure
Make thatitshould be attended
is maintained to at
and updated
and
all given action on ASAP.
times.