Fishbone Diagram/Analysis

A fishbone diagram is a tool that can help you perform a cause and effect analysis for a problem you are
trying to solve. This type of analysis enables you to discover the root cause of a problem.

This tool is also called a cause and effect diagram or an Ishikawa diagram. These names can be used
interchangeably.

Ishikawa Diagram Structure

The left side of the diagram is where the causes are listed. The causes are broken out into major cause
categories. The causes you identify will be placed in the appropriate cause categories as you build the
diagram.

The right side of the diagram lists the effect. The effect is written as the problem statement for which
you are trying to identify the causes.

Ishikawa Fish Bone Diagram

The diagram looks like the skeleton of a fish, which is where the fishbone name comes from.

How to Create a Cause and Effect Diagram

A cause and effect diagram can be created in six steps...

 Draw Problem Statement

 Draw Major Cause Categories

 Brainstorm Causes

 Categorize Causes

 Determine Deeper Causes

  Identify Root Causes

Draw Problem Statement

The first step of any problem solving activity is to define the problem. You want to make sure that you
define the problem correctly and that everyone agrees on the problem statement.

Once your problem statement is ready, write it in the box on the right hand side of the diagram.

Draw Major Cause Categories

After the problem statement has been placed on the diagram, draw the major cause categories on the
left hand side and connect them to the "backbone" of the fishbone chart.

In a manufacturing environment, the traditional categories are...

 Machines/Equipment

 Methods

 Materials

 People

In a service organization, the traditional categories are...

 Policies

 Procedures

 Plant

 People

You can start with those categories or use a different set that is more applicable for your problem. There
isn't a perfect set or specified number of categories. Use what makes sense for your problem.

Brainstorm Causes

Brainstorming the causes of the problem is where most of the effort in creating your Ishikawa diagram
takes place.

Some people prefer to generate a list of causes before the previous steps in order to allow ideas to flow
without being constrained by the major cause categories.

However, sometimes the major cause categories can be used as catalysts to generate ideas. This is
especially helpful when the flow of ideas starts to slow down.

Categorize Causes

Once your list of causes has been generated, you can start to place them in the appropriate category on
the diagram.
Ideally, each cause should only be placed in one category. However, some of the "People" causes may
belong in multiple categories. For example, Lack of Training may be a legitimate cause for incorrect
usage of Machinery as well as ignorance about a specific Method.

Determine Deeper Causes

Each cause on the chart is then analyzed further to determine if there is a more fundamental cause for
that aspect. This can be done by asking the question, "Why does it happen?"

This step can also be done for the deeper causes that are identified. Generally, you can stop going
deeper when a cause is controlled one level of management removed from your group. Use your
judgment to decide when to stop.

Identify Root Causes

Identifying the root causes of the problem can be done in several ways...

 Look for causes that appear repeatedly

 Select using group consensus methods

 Select based on frequency of occurrence

SWOT Analysis

-Is an effective method of identifying your strengths and weaknesses and examining the
opportunities and threats that you face often, carrying out an analysis using the SWOT framework will
also be considered to be a form of risk management.

-S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A
SWOT analysis is an organized list of your business’s greatest strengths, weaknesses, opportunities, and
threats.

Strengths and weaknesses are internal to the company (think: reputation, patents, location). You can
change them over time but not without some work. Opportunities and threats are external (think:
suppliers, competitors, prices)—they are out there in the market, happening whether you like it or not.
You can’t change them.

Strengths (internal, positive factors)

Strengths describe the positive attributes, tangible and intangible, internal to your organization. They
are within your control.

 What do you do well?

 What internal resources do you have? Think about the following:

o Positive attributes of people, such as knowledge, background, education, credentials,

network, reputation, or skills.
 o Tangible assets of the company, such as capital, credit, existing customers or
distribution channels, patents, or technology.

 What advantages do you have over your competition?

 Do you have strong research and development capabilities? Manufacturing facilities?

 What other positive aspects, internal to your business, add value or offer you a competitive
advantage?

Weaknesses (internal, negative factors)

Weaknesses are aspects of your business that detract from the value you offer or place you at a
competitive disadvantage. You need to enhance these areas in order to compete with your best
competitor.

 What factors that are within your control detract from your ability to obtain or maintain a
competitive edge?

 What areas need improvement to accomplish your objectives or compete with your strongest
competitor?

 What does your business lack (for example, expertise or access to skills or technology)?

 Does your business have limited resources?

 Is your business in a poor location?

Opportunities (external, positive factors)

Opportunities are external attractive factors that represent reasons your business is likely to prosper.

 What opportunities exist in your market or the environment that you can benefit from?

 Is the perception of your business positive?

 Has there been recent market growth or have there been other changes in the market the
create an opportunity?

 Is the opportunity ongoing, or is there just a window for it? In other words, how critical is your
timing?

Threats (external, negative factors)

Threats include external factors beyond your control that could place your strategy, or the business
itself, at risk. You have no control over these, but you may benefit by having contingency plans to
address them if they should occur.

 Who are your existing or potential competitors?

 What factors beyond your control could place your business at risk?
  Are there challenges created by an unfavorable trend or development that may lead to
deteriorating revenues or profits?

 What situations might threaten your marketing efforts?

 Has there been a significant change in supplier prices or the availability of raw materials?

 What about shifts in consumer behavior, the economy, or government regulations that could
reduce your sales?

 Has a new product or technology been introduced that makes your products, equipment, or
services obsolete?

Appreciative Inquiry

-is an approach to organizational change which focuses on strengths rather than on weaknesses
- quite different to many approaches to evaluation which focus on deficits and problems.

Appreciative Inquiry is often presented in terms of a 4 step process around an affirmative topic choice:

1. DISCOVER: What gives life? What is the best? Appreciating and identifying processes that work well.

2. DREAM: What might be? What is the world calling for? Envisioning results, and how things might
work well in the future.

3. DESIGN: What should be--the ideal? Co-constructing - planning and prioritizing processes that would
work well.

4. DESTINY (or DELIVER): How to empower, learn and adjust/improvise? Sustaining the change