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Problems can occur in any business, and may take many different forms. It’s important that you are able to determine the cause of such problems in a timely manner. The only way to ensure this is to make use of a structured approach and that’s where the fishbone diagram comes in.
A fishbone diagram may also be referred to as a cause and effect diagram, an Ishikawa diagram,
The fishbone diagram was given its name due to its resemblance to a fish’s skeleton. Initially popularized in the 1960s as a quality tool by Kaoru Ishikawa, it has become an important part of many modern-day systems, including Six Sigma.
A fishbone diagram, also known as Ishikawa diagram or cause and effect diagram, is a tool used to visualize all the potential causes of a problem in order to discover the root causes. The fishbone diagram helps one group these causes and provides a structure in which to display them. When applied correctly, it ensures that you address the actual cause of the problem and don’t just implement a superficial solution.
Originally conceived as a tool to aid in problem solving, the fishbone diagram is far more versatile than just that. For any process or system, the fishbone diagram is able to help you break down all of its contributing factors in a hierarchical manner.
Use cases for the fishbone diagram:
- To analyze a problem statement
- To brainstorm the causes of the problem (root cause analysis)
- To analyze a new design
- Process improvement
- Quality improvement
A core principle in lean methodology is the removal of waste within an operation. And in any business, one of the heaviest drains on profitability is waste. Lean waste can come in the form of time, material, and labor. But it may also be related to the utilization of skill-sets as well as poor planning. In lean manufacturing, waste is any expense or effort that is expended but which does not transform raw materials into an item the customer is willing to pay for. By optimizing process steps and eliminating waste, only true value is added at each phase of production.
Today, the Lean Manufacturing model recognizes 8 type of waste within an operation; seven originally conceived when the Toyota Production System was first conceived, and an eighth added when lean methodology was adopted within the Western World. Seven of the eight wastes are production process oriented, while the eighth waste is directly related to management’s ability to utilize personnel.
Defects impact time, money, resources and customer satisfaction. Examples of Defects within a manufacturing environment include lack of proper documentation or standards, large variances in inventory, poor design and related design documentation changes and an overall lack of proper quality control throughout the process workflow.
Formalized document control and design change documentation, thorough and documented quality methods in all production phases and checklists that have been audited to ensure proper adherence to the BOM are effective ways to control defect waste. And standardized work at each production cell or point in the production line will help reduce this type of waste as well.
Specific Defect causes include:
- Poor quality control at the production level
- Poor machine repair
- Lack of proper documentation
- Lack of process standards
- Not understanding your customers’ needs
- Inaccurate inventory levels
Excess processing is a sign of a poorly designed process. This could be related to management or administrative issues such as lack of communication, duplication of data, overlapping areas of authority and human error. It may also be the result of equipment design, inadequate job station tooling or facility layout.
Process mapping is a lean waste elimination tool that helps define an optimized workflow that can eliminate over processing. As a key method within lean production, process mapping is not limited to the performance of production tasks. It also includes reporting, signoff and document control.
Examples of Excess Processing include:
- Poor communication
- Not understanding your customers’ needs
- Human error
- Slow approval process or excessive reporting
When components are produced before they are required by the next downstream process, overproduction occurs. This has several negative effects. It creates a “caterpillar” effect in the production flow and results in the creation of excess WIP This leads to staging and therefore labor required to move the WIP additional times. And it can hide defects that could have been caught with less scrap if processes were balanced to allow detection earlier as earlier use of the WIP components would have revealed the defect in time to correct the issue.
Lean manufacturing systems utilize several tools to combat overproduction. Takt time is used to balance production rates between cells or departments. Measured and process-mapped jobs result in reduced setup time allowing efficient small batch flow. And in many industries, “pull” systems such as Kanban can be used to help control or eliminate WIP.
Common causes of Overproduction include:
- Unreliable process
- Unstable production schedules
- Inaccurate forecast and demand information
- Customer needs are not clear
- Poor automation
- Long or delayed set-up times
Waiting can include people, material equipment (prior runs not finished) or idle equipment (mechanical downtime or excess changeover time). All waiting costs a company has in terms of direct labor dollars and additional overhead costs can be incurred in terms of overtime, expediting costs and parts. Waiting may also trigger additional waste in the form of defects if the waiting triggers a flurry of activity to “catch up” that results in standard work not being followed or shortcuts being taken.
In many ways, waiting is the opposite of overproduction. However, it can be mitigated or eliminated with many of the same remedies. Waiting is often the result of poor process design and can be addressed through proper measurement of takt time and the creation of standard work.
Common causes of Waiting include:
- Unplanned downtime or Idle equipment
- Long or delayed set-up times
- Poor process communication
- Lack of process control
- Producing to a forecast
- Idle equipment
Inventory is considered a form of waste because of the related holding costs. This is true of raw materials, WIP and finished goods. Over purchasing or poor forecasting and planning can lead to inventory waste. It may also signal a broken or poorly designed process link between manufacturing and purchasing/scheduling. Lean Manufacturing does not just focus on the factory but also requires process optimization and communication between support functions.
Purchasing, scheduling and forecasting can have a version of standardized work in the form of defined minimums and maximums and order points that are mapped to the process flow and takt time.
Purchase raw material only when needed and reducing WIP and eliminating or narrowing the definition of “safety stock” will reduce this type of waste.
Common causes of Inventory Waste include:
- Overproduction of goods
- Delays in production or ‘waste of waiting’
- Inventory defects
- Excessive transportation
Poor plant design can cause waste in transportation. It can also trigger other wastes such as waiting or motion and impact overhead costs such as higher fuel and energy costs and higher overhead labour in the form of lift drivers as well as adding wear and tear on equipment. It may also result from poorly designed processes or processes that have not been changed or updated as often as required,
Value stream mapping and partial or full changes in factory layout can reduce transportation waste. This is a full documentation of all aspects of the production flow and not just the mapping of a specific production process. This results in changes to reduce or eliminate transportation waste.
Common types of Transportation Waste:
- Poor layouts – large distance between operations
- Long material handling systems
- Large Batch sizes
- Multiple storage facilities
- Poorly design production systems
Motion costs money. This not only include raw material but also people and equipment. It may also include excess physical motion such as reaching, lifting and bending. All unnecessary motion results in non-value-added time and increases cost.
Again, referencing core Lean Manufacturing methodology, process mapping should include facility layout and optimized workplace design that includes analysis of the distance of motion within the space as well as the location of parts, supplies and tools within the space as well. As an effective process map is developed, proper utilization of the space can be captured with well designed and documented standard work.
Common Motion Waste examples include:
- Poor workstation layout
- Poor production planning
- Poor process design
- Shared equipment and machines
- Siloed operations
- Lack of production standards
The eighth waste is the only lean manufacturing waste that is not manufacturing-process specific. This type of manufacturing waste occurs when management in a manufacturing environment fails to ensure that all their potential employee talent is being utilized This waste was added to allow organizations to include the development of staff into the lean ecosystem. As a waste, it may result in assigning employees the wrong tasks or tasks for which they were never properly trained. It may also be the result of poor management of communication.
By engaging employees and incorporating their ideas, providing training and growth opportunities and involving them in the creation of process improvements that reflect the reality they experience and the skills they possess, overall operational effectiveness is improved. The elimination of this type of waste can improve all others.
Examples of Non-Utilized Talent:
- Poor communication
- Failure to involve people in workplace design and development
- Lack of or inappropriate policies
- Incomplete measures
- Poor management
- Lack of team training
When you think of the word quality, what is the first thing that comes to mind? The word quality has more than one definition. Quality could be defined as a feature or characteristic as in the following statement: They are people of integrity, which is a good quality to possess. It can also be thought as how well something is made, if it meets all required specifications or if there are any apparent defects or non-conformances in the product. Therefore, quality is also defined as a determination of how good or bad something is, or how well it meets customer expectations. One example would be the quality of the paint on a new car. Quality systems focus on the latter definition. Quality Management Systems (QMS) are intended to help assure that a product or service meets or exceeds the customer’s expectations each and every time. Only by consistently meeting or exceeding the customer’s perception of quality can an organization not merely survive.
If we look at QMS in reverse, we can develop a better understanding of its definition. QMS is a System for Managing the Quality of a product or process. Furthermore, QMS is a system for documenting the structure, procedures, responsibilities and processes needed for effective quality management. The QMS outlines how an organization will produce, document, control and deliver a product or service possessing customer perceived value.
Multiple benefits result from development and implementation of a robust Quality Management System. Some of the most obvious benefits to implementing QMS are as follows:
Managing product and process quality enables an organization to consistently meet the needs and wants of their customers through Voice of the Customer (VOC). Increased customer satisfaction results in more sales, increased market share and a loyal customer base.
Ensuring that all government regulations and requirements are met with every new product introduction allows marketing products worldwide.
Reduction of costly rework and / or scrap is realized through implementation and monitoring of process controls.
Management is able to make decisions based on data not conjecture. The data collected through the implementation of Statistical Process Control (SPC) and other methods allows management to make decisions based on evidence. Valuable resources are utilized where they will have the most impact on improving process efficiency and reducing quality issues.
Developing and implementing a Quality Management System enables organizations of all types be more efficient and effective. Some have the false impression that the quality system only involves actions performed by personnel within the quality department. The Quality Management System affects multiple processes and departments within an organization from sales, design, development, production and delivery of the product or service to the customer. The QMS promotes cross-functional communication and interaction throughout the organizational structure, which can result in a more unified and stronger organization.
Implementing a Quality Management System into any organization, either large or small, is not a quick or simple task. It will require an investment in time and resources to successfully implement an effective QMS. Numerous important tasks and processes will require development and implementation. Below is a list of some key areas to consider when implementing a QMS.
- Business Analysis: The management team should review their business structure and determine the key areas for implementation of a QMS. The key areas should be determined according to critical to customer requirements. Consider the current needs of the organization and alignment with long-term strategic goals.
- Initial Planning: Management should be actively involved in the planning stages by determining the resources required, assembling the teams and formulating an implementation plan. In addition, discussions should identify which existing processes will be improved first and confirm strategic or SMART goals.
If you have ever waited in line at any store, you can appreciate the need for process improvement. In this case, the “process” is called the check-out process, and the purpose of the process is to pay for and bag your items. The process begins with you stepping into line, and ends with you receiving your receipt and leaving the store. You are the customer (you have the money and you have come to buy items), and the store is the supplier.
The process steps are the activities that you and the store personnel do to complete the transaction. In this simple example, we have described a business process. Imagine other business processes: ordering from mail order companies, requesting new internet service from your, developing new products, building a cottage, etc.
Business processes are simply a set of activities that transform a set of inputs into a set of outputs (goods or services) for another person or process using people and tools. We all do them, and at one time or another play the role of customer or supplier.
You may see business processes pictured as a set of triangles as shown below. The purpose of this model is to define the supplier and process inputs, your process, and the customer and associated outputs. Also shown is the feedback loop from customers.
Improving business processes is paramount for businesses to stay competitive in today’s marketplace. Over the last 10 to 15 years companies have been forced to improve their business processes because we, as customers, are demanding better and better products and services. And if we do not receive what we want from one supplier, we have many others to choose from (hence the competitive issue for businesses). Many companies began business process improvement with a continuous improvement model. This model attempts to understand and measure the current process, and make performance improvements accordingly.
The figure below illustrates the basic steps. You begin by documenting what you do today, establish some way to measure the process based on what your customers want, do the process, measure the results, and then identify improvement opportunities based on the data you collected. You then implement process improvements, and measure the performance of the new process. This loop repeats over and over again, and is called continuous process improvement. You might also hear it called business process improvement, functional process improvement, etc.
This method for improving business processes is effective to obtain gradual, incremental improvement. However, over the last 10 years several factors have accelerated the need to improve business processes. The most obvious is technology. New technologies (like the Internet) are rapidly bringing new capabilities to businesses, thereby raising the competitive bar and the need to improve business processes dramatically.
Another apparent trend is the opening of world markets and increased free trade. Such changes bring more companies into the marketplace, and competing becomes harder and harder. In today’s marketplace, major changes are required to just stay even. It has become a matter of survival for most companies.
As a result, companies have sought out methods for faster business process improvement. Moreover, companies want breakthrough performance changes, not just incremental changes, and they want it now. Because the rate of change has increased for everyone, few businesses can afford a slow change process. One approach for rapid change and dramatic improvement that has emerged is Business Process Reengineering (BPR).
BPR relies on a different school of thought than continuous process improvement. In the extreme, reengineering assumes the current process is irrelevant – it doesn’t work, it’s broke, forget it. Start over. Such a clean slate perspective enables the designers of business processes to disassociate themselves from today’s process, and focus on a new process. In a manner of speaking, it is like projecting yourself into the future and asking yourself: what should the process look like? What do my customers want it to look like? What do other employees want it to look like? How do best-in-class companies do it? What might we be able to do with new technology?
Such an approach is pictured below. It begins with defining the scope and objectives of your re-engineering project, then going through a learning process (with your customers, your employees, your competitors and non-competitors, and with new technology). Given this knowledge base, you can create a vision for the future and design new business processes. Given the definition of the “to be” state, you can then create a plan of action based on the gap between your current processes, technologies and structures, and where you want to go. It is then a matter of implementing your solution.
In summary, the extreme contrast between continuous process improvement and business process re-engineering lies in where you start (with today’s process, or with a clean slate), and with the magnitude and rate of resulting changes.
Over time many derivatives of radical, breakthrough improvement and continuous improvement have emerged that attempt to address the difficulties of implementing major change in corporations. It is difficult to find a single approach exactly matched to a particular company’s needs, and the challenge is to know what method to use when, and how to pull it off successfully such that bottom-line business results are achieved.
Six Sigma (6σ) is a set of techniques and tools for process improvement. It was introduced by American engineer Bill Smith while working at Motorola in 1986.
Jack Welch made it central to his business strategy at General Electric in 1995. A six sigma process is one in which 99.99966% of all opportunities to produce some feature of a part are statistically expected to be free of defects.
Six Sigma strategies seek to improve the quality of the output of a process by identifying and removing the causes of defects and minimizing impact Variability in manufacturing and business process.
In simple terms, Six Sigma quality performance means 3.4 defects per million opportunities
The philosophical perspective of six sigma views all work as processes that can be defined, measured, analyzed, improved, and controlled. Processes require inputs (x) and produce outputs (y). If you control the inputs, you will control the outputs. This is generally expressed as y = f(x).
