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    CAUSEEFFECT DIAGRAM

    Sandeep SinghRoll No. S8025

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    CAUSE - EFFECT DIAGRAM

    A Cause-Effect Diagram is an effectiveinvestigative tool for pictorially representingthe various theories about the causes thatresult in a specific effect.

    This diagram was introduced by KaoruIshikawain 1943 at the Kawasaki IronWorks, Japan.

    Some of the power in a cause-effectdiagram is in its visual impact. Observing afew simple rules will enhance the impact.

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    CAUSE EFFECT DIAGRAM

    ALSO KNOWN AS

    1. THE ISHIKAWA DIAGRAM

    2. FISH BONE DIAGRAM3. TOKUSEI YOIN-ZU (characteristics

    diagram in Japanese)

    4. GODZILLA BONE GRAPH.

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    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.

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

    LOST CONTROLOF CAR

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    Step 3: Use brainstorming or a rational step-by-step approach to identify the possible causes.

    There are two possible approaches to obtaining teammembers contributions for the causes to be placed on

    the diagram:

    1. Brainstorming and a rational step-by-step approach.

    2. The team or its leadership will need to make a choicebased on their assessment of the particular teamsreadiness.

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    Brainstorming would normally be indicated for a team witha few individuals who are likely to dominate theconversation 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 bebest in dealing with highly unusual problems where therewill be a premium on creativity.

    If one uses brainstorming to identify possible causes, then

    once the brainstorming is completed, the team will need toprocess the ideas generated into the structured order ofthe cause-effect diagram. This processing will take placein much the same way as described below for the step-by-step procedure, except that the primary source of ideas forinserting in the diagram will come from the list alreadygenerated in brainstorming rather than directly from theteam members.

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    Quality improvement project teams often find ithelpful to start with some simple mnemonic lists of

    possible major areas to remind them of the manypossible sources of causative factors. These listsare characterized as the 5Ms in manufacturing

    and the 5Ps in services, or as the 4Ws as follows:

    5Ms 5Ps 4Ws

    Manpower People (employees) What

    Material Provisions (supplies) Why

    Methods Procedures When

    Machines Place (environment) Where

    Measurements Patrons (customers)

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    These are just helpful places to start. Often the team willstart 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 manycauses of the major cause as possible. Then the teamshould 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 untilthat one is exhausted before moving on to the next one.Once the team has moved on, ideas may surface thatshould apply to an area already completed. Naturally, theteam will want to backtrack and add the new idea.

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    Step 4: Each of the major causes (not less than 2and normally not more than 6) should be workedin a box and connected with a central spine by aline at an angle of about 70 degrees

    Here as well as in subsequent steps, it has proved usefulto use adhesive notes to post the individual main andsubsidiary causes about the main spine.

    Since these notes can be easily attached and moved, it willmake the process more flexible and result easier for theparticipants to visualize.

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    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 theappropriate main area line and is parallel with the centralspine.

    Step 6: Add subsidiary causes for eachcause 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 notalways keep the lines neat and tidy. But, in the finaldocumentation, teams have found that using parallel lineswith random orientation is harder to read and looks less

    professional.

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    Step 7: Continue adding possible causes to thediagram until each branch reaches a root cause

    As we construct a C-E diagram, we move back along achain 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 thoseareas, 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 ofeach causal chain is a potential root cause.

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    A root cause has three characteristics that willhelp us know when to stop.

    First, it causes the event we are seeking to explain - eitherdirectly or through sequence of intermediate causes andeffects.

    Second, it is directly controllable. That is, in principle, wecould intervene to change the cause.

    Third, and finally, as the result of the other two

    characteristics, if the theory embodied in a particular entrydiagram is proved to be true, then the elimination ofpotential root cause will result in the elimination orreduction of the problem effect that we are trying toexplain.

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    Step 8: Check the logical validity of each causalchain

    Once the entire C-E diagram is complete, it is wise to startwith each potential root cause and read the diagram in a

    direction towards the effect being explained.

    Be sure that each causal chain makes logical andoperational sense.

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    Step 9: Check for completeness.

    + Check for the following:. Main branches with less than 3 causes

    . Main branches which have significantly less causes thanthe 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 meanthat there is a defect in the diagram; it merely suggests thatfurther 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 ifyou can redefine or split the cause into other categories.

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    WHEN TO USE C-E DIAGRAM

    Formulating theories:

    The chief application of the cause-effect diagram is for theorderly arrangement of theories regarding the problembeing tackled.

    The C-E diagram gives a pictorial representation of thisrelationship and helps identify those theories which shouldbe tested.

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    POTENTIAL PITFALLS

    The C-E diagram should not be treated as a substitute fordata.

    The C-E diagram should be drawn only after preliminarydata has been collected to narrow down the focus of aproblem.

    Do not limit yourself just to those theories that you have inthe diagram.

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    WHAT COMES AFTER C-E DIAGRAM

    Data collection, of course.

    Select one or more theories regarding the cause of aparticular problem.

    Then collect data to verify each of those theories.

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    NIKE IMPLEMENTED CAUSE AND EFFECTANALYSIS TO TACKLE THE PROBLEM

    CAUSE and EFFECTS

    The sweatshop working conditions that seemed endemicin developing nations.

    One of the reasons for the disconnect between acompanys code of ethics and what happens among its

    suppliers is that suppliersand even boards ofdirectorsoften are seen as external to the company

    They started conducting a supply chain audit tounderstand the actual practices and then to identifyneeded changes.

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    Monitoring is valuable but, like an audit, it only points outdiscrepancies and resolves incidents

    Many of the major suppliers are working very, very hard on

    understanding what they need to do to comply with socialresponsibility codes, but many also feel that complyingactually increases costs and decreases efficiency. So, theyare reluctant to comply.

    Lack of freedom of association and collective bargaining,harassment, excessive working hours, inaccurate or non-payment of wages and health and safety issues. Thatpressure, in turn, contributed to many other problems, suchas poorer quality, more accidents and increased overtime.

    Nikes audit found the reasons for excessively long work

    hours among its suppliers were poor application of locallaws, flawed factory management approaches and upstreambusiness processes that caused extra work.

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    There are other issues, too, of course, such as delays fromother suppliers, production bottlenecks or acts of nature likethe hurricanes that hit Mexico last September. These all

    increase overtime if the production schedule lacks theflexibility 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 itssuppliers.

    Why because suppliers were not able to fulfill demand fromthe suppliers on time.

    Why because their production was slow and gets delayedmost of the time.

    Wh b f th t d d i li ti

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    Why because of the tremendous and excessive unrealisticpressure from their clients like Nike.

    Why because of the sweat shop culture in their factories.

    why because in order to meet gigantic expectations from theirclients they had to look for productivity neglecting the poorconditions of the workers, their long working hours, corporatesocial responsibility, no safety and many more.

    Why because of no proper HUMAN RESOURCEDEVELOPMENT.

    Why because suppliers think that this is just waste of time andmoney so they do not comply with it.

    Why suppliers think that this will increase their cost anddecrease their productivity.

    Why because Nike did not tried to go to their suppliers and asktheir problems. They did not take their suppliers problems as

    their own problems.

    Why because they think their suppliers as separate entity.

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    Steps taken by NIKE

    Nike has become a business ambassador, teaching suppliers

    that regardless of their location or local operating environmentit makes good business sense to treat their workers fairly.Suppliers, for their part, increasingly understand that thebenefits of ethical practices can enhance their own bottomlines, through expanded markets, better quality, more

    business and increased revenues. Increased innovationthrough freedom of association, plus a more prosperousworkforce and a more robust local economy are icing on thecake. By working with its suppliers rather than dictating

    them, Nike really is changing the world, one factoryat a time.

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