10.ishikawa pareto

8/10/2019 10.Ishikawa Pareto

1/20

Ishikawa and Pareto

Nur Amira Farihan Bt Abdul Razak G1328638

Nur Aliaa Che Abdullah G1311828

Nur Adibah Mohd Salleh G1218294

Nima Abdiaziz G1322784


2/20

Introduction

This study is done to analyze the two tools for strategicmanagement which are Ishikawas Fishbone Diagram and Paret

Objectives:

To understand the concept or definition of Ishikawas Fishbone

Diagram and Pareto

To identify how to apply the strategy

To relate the strategy with the real case study or organization


3/20

Ishikawa diagrams was developed by Kaoru Ishikawa in 196measuring quality control processes in the shipbuilding indu

Also referred as fish bone diagrams because they resemble awith the "ribs" representing the causesof an event and the showing at the head of the skeleton.

The purpose of the Ishikawa diagram is to assist teams in catmany potential causes of problems or issues in an orderly w

identifying root causes.

Ishikawas Fishbone Diagram


4/20

Define theProblem

To define the problem for which the root cause has to be identif

Brainstorm

Gathers ideas from people who are potential contributors, to secauses of the problems

Categorize

Mckinsey 7s Framework

4Ps of Service Industry, 6 Ms Manufacturing Industry, Process St

How To Construct Ishikawas Fishbone Diagram


5/20

Fishbone Suggested Categories


6/20

Ishikawas Fishbone Diagram


7/20

Another

Sample Text

Ef

Machine

Man

Method

Mother of Nature(Environment) Materials

Management

Fishbone Diagram


8/20

The case study reveals that the hospital is facingimmense problem to ensure sound supply chainmanagement.

As a result the hospital is increasingly failing tomaintainits well established and long lasted

reputation.

In this fishbone analysis the causes of theinefficient supply chain management of thehospital will be uncovered

St James Hospital: Inefficient Supply Management


9/20

Fishbone Diagram: St James Hospital (cont..d)

Lack of Proper Equipment

Faulty Process

Misdirected People

Materials Managed PoorlyImproper Environment Inefficient Managem

Many Suppliers

Faulty Ordering

No Specification

Underperforming

No Technical Support

No Storage

Disappointment

Resistant to Change

Hidden Cost

No Innovation

No Professionalism

Too Many Inventories

No Orientati

Power War

Lack of Trust

No Coord

High Cost

Stockout

Overstocking

No EOS

High Lead Time

Lack of Specification

Under Utilization

Too Many Options

No IT Facility

Haphazard

High Cost

High Cost

Duplicity

Supplies Cost

No Storage

Unavailability

Protectionism

Rivalry

Unsound Set-Up

Short Budget

No Relationship with Supplier

No Materia

No Emp


10/20

Based on the diagram constructed, the problems

or root cause can be clearly identified.

It helps the management to see which area canbe improved, or which causes that contributesmost to the problems

From here, the management could find theappropriate solutions for the problems

Fishbone Diagram: St James Hospital (cont..d)


11/20

Advantages

Determine root causes

Encourage groupdiscussion-brainstorming

Easy to read format

Disadvant

When problemsimple or alreaknown

Team size is sm

Communicatioproblems

Time constrain


12/20

PARETO


13/20

Pareto 80 20 Rule

BACKGROUND

- Named after Vilfredo Pareto an Italianeconomist

- He observed in 1906 that 20% of the Italianpopulation owned 80& of Italys wealth

- He the noticed that 20% of the pea pods inhis garden accounted for 80% of his peacrop each year

OVERVIEW

- The 80-20 rule asserts that causes, inputs or effort usuamajority of the results, outp

- The 80-20 rule tells us that ipopulation, somethings aremuch more important than benchmark or hypothesis isresults or outputs flow fromand sometimes from a mucproportion of powerful forc


14/20

25

80

0

Pareto Principle

80

20

0 0

20% of the input (time, resources, effort)accounts for 80% of the output (results, rewa


15/20

Steps to be analyze-Pareto

1. Identify and List the Problem2. Identify Root causes- brainstorms,5 Whys, cause & effect ana3. Score the Problems

4.Group Problems together by root cause

5. Add up the scores for each group6. Take action


16/20

Pareto 80 20 RuleHOW

1. Record raw data2. Prepare analysis sheet and categorize the data

3. Determine the percentage of each category

EXAMPLE

Delay in processing credit card application

Category Frequency Percentage Cumulative

No signature 40 43% 4

Non-legible writing 22 23% 6

Current Customer 15 16% 8

No Address 9 10% 9

Other 8 8% 10


17/20

80% LineTrivial Many

Vital Few


18/20

Results

Line at 80% on the y-axis running parallel to the x-axis. This poinaxis separates the important causes on the left (vital few) fromimportant causes on the right (trivial many).

It enables you to see what 20% of cases are causing 80% of thand where efforts should be focussed to achieve the greatest im

In this case, we can see that no signature, illegibleand currentshould be the focus.


19/20

BENEFITS

A Pareto chart breaks a big problem down into smaller pieces, idensignificant factors, shows where to focus efforts, and allows better

resources

Focus on activities that produce the best outcomes for you, profepersonally

Helps identify important problems

LIMITATIONS

Focus on the past

Mistaken application

Incorrect problem scores

Time constraint-short period


20/20

Conclusion

We have explained Ishikawa Diagram and Pareto concept andapply the strategy tools.

Case example given to relate to the both strategy

Thank you!

10.ishikawa pareto

Documents