advanced research lesson 4

8/4/2019 Advanced Research Lesson 4

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Advanced Research

Morgan Motor Company

IBMRS208R2 lesson #4KG van der Kooy


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Today

Analysing business processes by meansof Cause and Effect diagram


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An analysis tool that provides asystematic way of looking ateffects and their respective

causes Developed by Dr. Kaoru Ishikawa

of Japan in 1943

It is referred to as an IshikawaDiagram or a Fishbone Diagram

What is it?


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It helps determine the rootcauses

of a problem using a structured

approach.It encourages group participationand utilizes group knowledge of

the process.

It uses an orderly, easy-to-readformat to diagram cause-and-effect relationships

It indicates possible causes of

variation in a process.

Why implement this?


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It increases knowledge of theprocess by helping everyone tolearn more about the factors at

work and how they relate.It identifies areas where data

should be collected for furtherstudy.

Why implement this?

EXAMPLE OF A BUSINESS PROCESS>


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

Submission of Billing toClient

Receive update ofnewly issued billings

Find and update clientsbilling statements

Locate includedclients file folders

File folders

Call each clienton update

BuyersInformation Sheet

Send Billing Statements

Locate included clientsBuyers Information Sheet


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STEP 1:

Decide on the effect to beexamined.

An effect may be positive (anobjective) or negative (a problem),

depending upon the issue that isbeing discussed.

Identify and clearly define the outcomeor EFFECT to be analyzed.

>POSITIVE pride and ownership over productive areas upbeat atmosphere that encourages the participation of the group

> NEGATIVE justifying why the problem occurred and placing blame easier for a team to focus on what causes a problem than what causes

an excellent outcome concentrate on things that can go wrong may foster a more relaxed

atmosphere which sometimes enhances group participation



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STEP 2:

Draw a horizontal arrow pointing to theright. This is the spine.

To the right of the arrow, write a briefdescription of the effect or outcome

which results from the process. Draw a box around the description of the

effect.

Draw the SPINE and createthe EFFECT box.

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


9/20 PUTTING CAUSE-AND-EFFECT DIAGRAM TO TEST: STEP 3>

InaccurateSubmission ofBilling to Client

Effect Box

Spine


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Establish main causes, or categories,

under which other possible causes willbe listed. 8Ms of manufacturing 4Ps of service 3Ms and P

STEP 3:

Identify the main CAUSES contributingto the effect being studied.


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The 8 Ms (used in manufacturing)

Machine (Technology)Method (Process)Material (raw material, consumables, etc)Man Power (People)Measurement (Inspection)

Mother Nature (Environment)ManagementMaintenance

The 4 Ps (used in service industries)

PoliciesProceduresPeoplePlant

The 3Ms and P (often used)Methods, Materials, Machinery & People

STEP 3:



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Write the main categories your team has

selected to the left of the effect box.Draw some above and below the spine.

Draw a box around each category label and

use a diagonal line to form a branch from thebox to the spine.

STEP 3:


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


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Materials



Methods People

Machinery

Main Causes


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STEP 4:

Identify as many factors or causespossible and attach them as sub-

branches of the major branches. Fill in detail for each cause.

For each major branch, identify otherspecific factors which may be theCAUSES of the EFFECT.

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


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Materials


Methods People

Machinery

Ignorance

People fail to informclient thru call/e-mail

Unreliablemail system

Erroneoussorting

of billingstatementsInvalidlist ofupdates

Phone linedisconnected

Erroneous

Informationin BIS

No file forrecord of billingstatementsin clients folders


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STEP 5:

You can do this by askinga series of WHY questions.

Identify more detailed levels of causesand continue organizing them underrelated causes or categories.

FROM GIVEN EXAMPLE:

Q: Why is there an invalid list of updates?

A: Because the data was mixed up.

Q: Why was the data mixed up?

A: There was a problem with the manual organization of the 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 manuallyprearranged, inaccuracy is inevitable.

CAUSE-AND-EFFECT DIAGRAM , updated with STEPS 1, 2, 3, 4 & 5>


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Materials


Methods People

Machinery

Ignorance

People fail to informclient thrucall/e-mail


Erroneoussortingof billing

statements

Invalidlist ofupdates


ErroneousInformationin BIS

Assortedrecordsof billing

statementsin clientsfolders

Mixed updata

Inaccuracyinsortingdata

Manualfile

organization

Poortraining

Mixedup data

InaccuracyIn sortingdata

Ignorance

Wrong phone number/e-mail information

Erroneousinfo

in BIS


Manual file

organization

Notraining

Manual fileorga

nization

Skipping payingmonthly bills

Poortrainin

g

Nom

oney

Inaccuracyin sortingand givingout mail

Manua

l filesystem

Mixedupdata


Manualfile

organization

Mixed

up

data


Manual fileorga

nization


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It helps identify causes that warrant

further investigation. Use a pareto chart to determine the

cause to focus on first. See the balance of your diagram,

checking for comparable levels ofdetail for most of the categories.

A thick cluster of items in one area may indicatea need for further study.

A main category having only a few specificcauses may indicate a need for furtheridentification of causes.

If several major branches have only a few sub-branches, you may need to combine themunder a single category.

Look for causes that appear repeatedly.These may represent root causes.

Look for what you can measure in eachcause so you can quantify the effects ofany changes you make.

Most importantly, identify and circle thecauses that you can take action on.

STEP 6:

Analyze the diagram

CAUSE-AND-EFFECT DIAGRAM, completed>


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RECOMMENDATIONS from completed CAUSE-AND-EFFECT DIAGRAM>

Poor

training

Manualfile

organization

Poortraini

ng

Manual file

systemManual

fileorganiza

tion

Manualfile

organization

Materials


Methods People

Machinery

Ignorance

Peoplefail toinformclient thrucall/e-mail


Erroneoussorting

of billingstatements

Invalidlist ofupdates


Erroneous

Informationin BIS

Assortedrecords

of billingstatementsin clientsfolders

Mixed updata

Inaccuracy

insortingdata

Manual

fileorganization

Poortraining

Mixedup data

InaccuracyIn sortingdata

Ignorance

Wrong phone number/e-mail information

Erroneousinfo

in BIS


Manual file

organizati

on

Notraining

Manual file

organizati

on

Skipping payingmonthly bills

Poortrai

ning

Nom

oney

Inaccuracyin sortingand givingout mail

Manual file

system

Mixedup

data


Manualfile

organization

Mixed

up

data

Inaccuracyin

sortingdata

Manual fileorganizati

Notraining

Manualfile

organization

Manualfile

organizat

ion


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ANALYSIS

The level of detail is well-balanced.

The causes poor/no training andmanual file organization/system arerepeated several times.

These causes stated above are theones that should be attended toand given action on ASAP.

RECOMMENDED SOLUTIONS Poor/No Training -> Give tutorials andseminars to new and old employees alike.Have people check employees performancesevery once in a while.

Manual File System -> Have a computer-based information system to maintain theorganization. It will not only give you back-upfiles but make the system work faster. Make

sure it is maintained and updated at all times.

advanced research lesson 4

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