Cause and Effect Diagram and Pareto Analysis

Cause and Effect Diagram

Cause and Effect diagram and Pareto analysis are two of the seven basic QC tools. When both these tools are used together, they provide a complete picture of a problem. Cause and Effect Diagram Cause and Effect Diagram is a technique for identifying the possible causes of an observed problem or effect and helps to trace/identify the root cause of the problem for removing them. This is also called Fish Bone diagram (or) Ishikawa Diagram. It is a simple but powerful tool for getting to the bottom of the problem.

It can be used to:

  • Define a problem
  • Break problems down into their constituent elements
  • Help generate ideas / add structure to brainstorming
  • Identify relationships between causes (which are often present but hidden)
  • Assist decision making

Steps to create the Fish Bone diagram

  • Name the Head of the fish with the exactproblem
  • Draw minimum of five branches as shown in figure depicting 5Ms – Machine, Material, Method, Man and measurement.
  • Brainstorm with the team to determine:
    • What can be the possible causes
    • Search causes among machines first, then material, method, man, and measurement.

Pareto analysis According to Pareto analysis,80 % of the problems are caused due to 20% of the causes. Hence if we focus on the vital few causes, the majority of the problem can be solved. It saves precious time in solving a problem. This is a universal philosophy and can be applied anywhere. Example:

  • In a nation, 80% of the wealth is owned by 20% of the people and the remaining 20% of the wealth belongs to 80% of the people
  • In the Purchase department, 80% of the total purchase value would be contributed by the top 20% of the items
Pareto Analysis

Application of the tools Considers a situation where an improvement team is focusing to reduce the poor quality rejection of a part. The team can apply the cause and effect diagram and Pareto analysis using the following steps,

  • The team has to conduct a brainstorming session for listing all possible causes of defectives.
  • Create a Cause and effect diagram using the possible causes
  • Plan and Collect the data which shows the number of parts rejected due toeach possible causes.
  • Create a Pareto diagram which shows the major causes of the quality rejection
  • Create a solution for the major causes of the problem

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