16. of 58 Root Cause Analysis Technique – Fishbone Diagram The value of the Fishbone Diagram is that it provides a method for categorizing the many potential causes of problems or issues in an orderly way and in identifying root causes Cause Detail Cause Detail Cause Detail Cause Detail Fishbone Diagram (a.k.a. Cause and Effect Diagram) is an analysis tool that provides a systematic way of looking at effects and the causes that create or contribute to those effects. Result (Problem)
20. of 58 Issue Diagram is an effective method for breaking down problems and formulating hypotheses Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #1C Hypothesis #1D Key Questions #1C-a Key Questions #1C-b Key Questions #1C-c Key Questions #1C-d
21. of 58 Key Components of Issue Diagram Issues Hypotheses Key Questions Questions which need to be answered or topics which need to be explored in order to solve a problem Speculative answers for issues that are phrased as questions and/or areas of exploration for issue phrased as topics Questions that probe hypotheses and drive the primary research required to solve the problem
22. of 58 Identifying the Issues Problem Issue #1 Issue #2 Issue #3 Client wants to decide whether they should divest their widget X manufacturing business Is there a market for divesting this business? Is this a cost effective solution for the client? What impacts will there be for the displaced employees? What key topics should we explore to help the client solve this problem?
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24. of 58 Formulating the Hypotheses Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B Market Interest? Cost Effectiveness? Impacts on Employees? Etc. Etc. Etc. Divest Widget X Business? The market is large. What are some possible answers to the issues? Large percentage of employees will likely retire in two years.
25. of 58 Framing the Key Questions Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B Market Interest? Cost Effectiveness? Impacts on Employees? Divest Widget X Business? The market is large. What questions need to be answered to prove/disprove the hypothesis? Large percentage of employees will likely retire in two years. Key Question #1A-a Key Question #1A-b Key Question #1A-c How many players are there in the market? How many are large enough to take on the client's business? Key Question #3A-a Key Question #3A-b Key Question #3A-c How many employees are 50 years old or older and interested in retiring?
37. of 58 Specific Sequential Steps that lead up to the Analysis Make sure you know what you are trying to solve – Clearly defined issues or questions drive the analysis! 1 2 3 Once you’ve matched up the analytical tools against the question or issue, then go out and collect the facts Match up the clearly defined question or issue with the appropriate analytical tool(s)
38. of 58 Apply analytical tools and move back upstream Problem Issue #1 Issue #2 Issue #3 Hypothesis #1A Hypothesis #1B Hypothesis #2A Hypothesis #2B Hypothesis #3A Hypothesis #3B What analysis needs to be done to answer this question? Key Question #1A-a Key Question #1A-b Key Question #1A-c How many are large enough to take on the client's business? Key Question #3A-a Key Question #3A-b Key Question #3A-c How many employees are 50 years old or older and interested in retiring? # of companies in industry Revenues for last 5 years Age of employees Employee interest level in retiring 1. Start with clearly defined issues or questions 2. Select the Analytical Tool Benchmarking 3. Collect required information per the Analytical Tool selected 4. Once you complete your analysis, move back upstream to answer the key question you started with
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41. of 58 Benchmarking Example Air Force . . . . . . . . . . . 75 Days Army . . . . . . . . . . . . . . . 96 Days Canadian Army . . . . . . 145 Days Navy . . . . . . . . . . . . . . . 116 Days Average Days for Source Selection
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43. of 58 SWOT Example Internal Assessment of the organization, its people, services, competencies, etc. External Assessment of direct and indirect forces, social, economic, political, etc. Client has a global infrastructure to service all types of customers Strengths Weaknesses Services are in high demand in most parts of the world Client has limited resources for expanding its global reach Key processes are not very cost competitive when compared to other service providers Untapped demand exists in almost half of the World New Technologies make it possible to expand service reach Other clients are investing in newer technologies Some clients are entering into strategic partnerships to expand their global footprint Threats Opportunities
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51. of 58 Pareto Chart Measure Categories Causes, Products, Mfg. Lines, Operators Machines, Defect Types, etc. Downtime, Errors, # of Employees, etc.