T-Building a CandE Matrix

8/12/2019 T-Building a CandE Matrix

1/11

BMGI. All rights reserved. No portion may be copied, rewritten, reproduced, or published.

Page 1 of 11

Building a Cause and Effect Matrix

Section 1: Module IntroductionSection 2: Creating a Cause and Effect Matrix


2/11



Page 2 of 11

Section 1: Module Introduction

Introduction

Welcome to our module on creating a Cause and Effect matrix, also known as a C & E matrix.

A Cause and Effect matrix is often used to link the Critical to Quality aspects of your project to the Causes andEffects of a problem you have already identified.

Critical to Quality aspects, also known as CTQs, are the factors that are recognized to be critical to customersatisfaction and the success of the business. Critical to quality factors are most often related to low defects andhigh-quality products and services.

The C&E Matrix is a very useful tool that can be used to prioritize these critical to quality factors that have thehighest impact on a process, and to choose the right ones for further measurement.


3/11



Page 3 of 11

Module Objectives

In this module, you will learn:

How to create a C&E matrix. How to link potential inputs and process indicators to the output indicators and CTQs. How to prioritize and rank the factors that will be further measured in a project and the benefits of the

C&E matrix.

Lets get started.


4/11



Page 4 of 11

Section 2: Creating a Cause and Effect Matrix

What is a C&E Matrix?

The C&E matrix represents a process by showing outputs, inputs and process indicators to help you figure out, ina quantitative manner, which inputs and process indicators affect each output.

The inputs and outputs of a process are displayed in a table listing the inputs as rows and the outputs as columns.Where they intersect, you make a numerical assessment as to how much effect each input has on each output.

In the next few slides, well discuss and demonstrate how to make this numerical assessment and what to do withthe data once its been calculated.

C&E Matrices can be created in a variety of formats, but an Excel-type spreadsheet works best. A sampletemplate has been provided for you, and well use this format to create a C&E matrix as we move through themodule. You may download the template to follow along with the course, or to use in future projects.


5/11



Page 5 of 11

Creating a C&E Matrix

When you construct a C&E matrix, it should be done in a brainstorming session with your team.

The first step in the construction of a C&E matrix is to list the outputs across the top of the form. These willbecome the columns of the matrix. Remember these are usually customer-driven outputs, specified as CTQs.

Second, rank the outputs according to your customers priorities or levels of importance. Each output is rankedagainst the others using a scale of 1 to 10. A higher value implies greater priority or more importance to thecustomer.

Third, identify the process steps and inputs that contribute to the changes in your outputs. These are listed on the

left-hand side of the form and will become the rows of the matrix. The tough part begins at this point.In step 4, you rank the potential contribution, or effect, of each input on each output. You will do this in the insidebody of the matrix where a row and a column intersect.

Finally, you prioritize the critical items using the value in the totals column. The values in the totals column arecalculated by multiplying each input by each output and adding those values across each row. Process steps andinputs with the highest values are the areas youll want to investigate further.

Lets take a look at an example.


6/11



Page 6 of 11

C&E Matrix Example Document Inputs and Outputs

Have you ever applied for a loan from a bank? Perhaps youve wanted to buy a car or a house, or just neededsome extra money. Chances are, youve experienced this process as a customer. But have you ever thoughtabout the process once the loan application has been submitted? Lets use this scenario to construct a C&Ematrix to help identify potential Xs that may play an important role in a banks loan decision process.

To create a C&E matrix for this process, we begin by identifying the customer requirements. Although manycompanies are hesitant to ask for their customers input, please dont be afraid to poll or survey your customers tohelp you identify and rank these outputs. Doing so will only ensure accuracy in your efforts.

Lets assume the bank conducts a customer survey and discovers that customers want fast and fair decisions.

They want a simple and easy-to-understand application. And during the entire process, they want the ability toobtain updates on the status of their application.

Once weve identified the key outputs, we rank their importance. The banks survey also asked customers to rankhow important each requirement is, and these values have been calculated. Fast decision is most important, andis rated a 9 on a scale of 1 to 10. Fair decision is next, and is rated a 7, simple application rates a 5; and frequentupdates, rated a 3, is determined least important by the banks customers.

Once we rank the customer priorities, we enter the key process steps into the C&E matrix. These process stepsare pulled directly from a process map, which identifies the key steps of the process youre focusing on.

For each process step, we then enter the key inputs. For example, the application and its instructions are theinputs to the complete application step. The completed application is an input to the review application step,


7/11



Page 7 of 11

and so on. A general category is also included to capture factors that may cut across all of the process steps.Inputs such as training, policies, and scheduling are key inputs throughout the entire process.


8/11



Page 8 of 11

C&E Matrix Example Ranking Inputs

Now that we have the structure of our matrix in place, we must gather the data. The fourth step is to fill in theintersecting cells of the matrix. This is when youll want to assemble your team for a working session. For eachcell, ask the question, How much of an influence does this input have on this output? The answer to thisquestion must be described as a numerical value. These values typically run on a scale of 0 to 10.

However, most teams use discrete rankings of 0 for no effect, 1 for small effect, 3 for medium effect, and 9 formajor effect on an input on an output. For example, for the highlighted cell, we would ask, how much influencedoes the process input of Completed Application have on receiving a fast decision? If the influence is significant,the rating is high. In this case, the rating is a 9, suggesting a very high influence.

The completed application most likely has no effect on a fair decision or whether the application is simple, so wenote those cells as zeros. To complete this row, a completed application probably has a small effect on the abilityto receive frequent updates, so the team assigns a value of 1. The team continues to discuss each process stepand process input and fills in the rest of the matrix in a similar fashion.

Finally, we determine the relative significance of each process input by cross-multiplying the customer priority andrelationship rating, and then adding those numbers across each row. For example, lets consider the input creditreport. To calculate its total, multiply 9 times 5 plus 7 times 9 plus 5 times 0 plus 3 times 0.

The total for credit report is 108. If you do this for each input variable listed in your C&E matrix, you will get aranking for each process step and key input. This is very powerful information. You have taken the knowledge ofa process team and quantified it numerically.


9/11



Page 9 of 11

Now we can sort the totals column so that we can address the most important input variables in our futureactivities for process improvement. Based on this analysis, it appears as though training, policies, and the creditreport are all areas that should be explored in more detail. This is how we use a C&E matrix.


10/11



Page 10 of 11

Benefits of a C&E Matrix

There are three primary benefits of using a C&E matrix.

The first is that this tool allows for the numerical quantification of process input and output relationships. Thismeans you take the knowledge of process experts, and you quantify it.

Second, it allows you to identify the factors that are most important to your customers and rank them. And dontforget you should ask your customers for input whenever possible.

Finally, a C&E Matrix allows a project team to identify and agree on the most critical variables for furtherinvestigation.


11/11



Page 11 of 11

Module Review

In this module you have learned:

How to create a Cause and Effect matrix by linking process and input indicators to output measures. You have also ranked and prioritized the most important ones in order to determine which factors to

investigate further and you learned the key benefits of the C&E matrix.

The C&E matrix has proven to be a helpful tool in any project, and we hope you'll put it to good use!

Documents

T-Building a CandE Matrix