1.3 ORGANIZATIONAL PLANNING & DECISION MAKING:
FISHBONE ANALYSIS
HL (HIGHER LEVEL CONTENT)
DECISION MAKING TECHNIQUES(p56-65)
There are a number of techniques that may assist managers in making more effective decisions. As a HL student you must know: The Fishbone (cause & effect) diagram/ Decision Trees (probability diagrams) Force Field Analysis
THE FISHBONEOrigins
• The fishbone diagram (also know known as the Ishikawa or cause and effect diagram) attempts to identify the causes of an event.
• It gets is names from the fact that the diagram resembles the skeleton of a fish.
• The diagram was created by Kaoru Ishikawa, who pioneered quality management processes in the Kawasaki shipyards.
• He became one of the founding fathers of Japanese modern management.
THE FISHBONEAnalysis
• Fishbone analysis provides a structured way to help think through all possible causes of a problem.
• Causes in the fishbone diagram are usually arranged into four or six major categories, although this can be adapted to the individual situation.
Categories for the Fishbone
The Six Ms: Recommended for Manufacturing Goods• Manpower, Methods, Machinery, Materials,
Mother Nature (environment), Measurements
Recommended for Delivery Services• Equipment, policies, procedures and people.
Steps in the Process for Using a Fishbone Diagram
1.Identify and agree on the problem
2.Establish the major causal factors involved.
3.Identify possible causes.4.Analyze the Diagram
FISHBONE DIAGRAM PROCESS1. Identify and Agree on the Problem
• Write down the exact problem • Identify the staff involved, and when and
where the problem occurs. • Write the problem on the right hand side of
the diagram. • Draw arrow across the paper horizontally to
the problem, providing a framework to develop ideas.
FISHBONE DIAGRAM PROCESS2. Establish the major causal factors involved
• Identify the factors that may be root causes of the problem and merit further investigation.
• Draw lines off the spine for each of the factors and label the branches.
• These may include factors such as the people involved with the problem, machinery employed, methods used and materials used.
• These factors may be established using a brainstorming exercise.
FISHBONE DIAGRAM PROCESS3. Identify possible causes
• Where a cause is complex, there may be several sub-causes.
• For each root cause identified ask: why is this cause happening?
• Establish possible related sub-causes. • These are them smaller lines off the “bones” of
the fish.• The five waves technique (p64) would be useful
here.
FISHBONE DIAGRAM PROCESS4. Analyse the Diagram
• Investigate the most likely causes identified on the diagram, which may involve further, more extensive and detailed research.
• This should help clarify whether the causes are correct.
FISHBONE DIAGRAM – FOLLOWUP
• Once the diagram is completed, the business will put into action policies to address the underlying causes of the problem identified.
• For an application of the fishbone to the total quality management see p254 (textbook)
FISHBONE EXERCISE
Problem
A Business is experiencing decliningsales of its Product X
Identify possible causes of this problem and possible solutions, by completing a fishbone diagram.