Chapter 10 covers quality management tools, focusing on the cause-and-effect diagram (fishbone) for identifying root causes of quality issues. It outlines the methodology for creating the diagram, including the 5Ms (manpower, methods, machines, materials, measurements) and introduces the McKinsey 7S model for analysis. Additionally, Pareto analysis is discussed to prioritize problems, illustrating that 80% of issues often stem from 20% of causes.

1. Chapter 10
Quality Tools – Part 1
Managing Quality
Integrating the Supply Chain
S. Thomas Foster

2. Ishikawa’s Basic Quality Tools
1 - 2
Process Mapping
Histogram
Check Sheets
Scatter Plots
Control Charts
Cause & Effect
Diagram Pareto Analysis

3. Cause-and-Effect Diagram (Fishbone)
A Cause-and-Effect Diagram is a tool that helps graphically
identify, sort, and display possible causes of a specific
problem or quality characteristic.

4. Cause and Effect diagram -Fishbone
When it comes to properly identifying the problem, there are
four properties to consider:
what the problem is
who are involved
when it occurs, and
where it occurs.
Cause and effect diagrams exercise is usually a teamwork.
A brainstorming session is required in order to come up with an
effective cause and effect diagram.
1 - 4

5. Cause and Effect diagram -Fishbone
Write down the problem in a box, which is located at the left
hand corner (refer the example cause and effect diagram).
From the box, draw a line horizontally to the right hand side.
The arrangement will now look like the head and the spine of
a fish.
All the main components of a problem area are listed and
possible causes from each area is listed.
1 - 5

6. Field of application
The Fishbone diagram could be applied when it is wanted to:
Focus attention on one specific issue
or problem in manufacturing and
service sectors . Also, for problem
related to management.

7. Cause and Effect diagram -Fishbone
1 - 7

8. 1 - 8

9. Benefits
Helps determine root causes Encourages group participation
Indicates possible causes of
variation
Increases knowledge of the
process by helping everyone to
learn more about the factors at
work and how they relate

10. Methodology
Step 1 •State the problem clearly in the head of the fish
Step 2 •Draw the backbone and ribs.
Step 3 •Continue to fill out the fishbone diagram, asking “5 Whys”
Step 4 •View the diagram and identify the core causes
Step 5 •Analyze the diagram and set the goals to address the core causes.

11. Identify the main CAUSES
5Ms - Material, Machine, Manpower, Management and
Method.
7Ss involves seven interdependent factors which are
categorized as either "hard" or "soft" elements.

12. Identify the main CAUSES
In manufacturing, it accepted that there are 6 main branches that need investigation. These
are often describes as the “6M’s” but feel free to use the terms that best suit your company.
Manpower / People: Everyone involved with the process across the value stream, including
support functions
Methods / Processes : This defines how the process is performed and the all requirements
needed for doing it, including quality procedures, work orders / work instructions, drawings
Machines / Equipment: All machines and equipment, needed to accomplish the job,
including tools
Materials: Raw materials, purchased parts and sub assemblies that feed into the end
product
Measurements: defines how have we determined that the outcome is wrong
Environment: The conditions that influence the process including time, temperature,
humidity or cleanliness

13. Identify the main CAUSES
The McKinsey 7S model involves seven interdependent
factors which are categorized as either "hard" or "soft"
elements:
Hard Elements
Strategy
Structure
Systems
Soft Elements
Shared Values
Skills
Style
Staff

14. Identify the main CAUSES
Strategy: the plan devised to maintain and build competitive advantage over the
competition.
Structure: the way the organization is structured and who reports to whom.
Systems: the daily activities and procedures that staff members engage in to get
the job done.
Shared Values: called "super ordinate goals" when the model was first
developed, these are the core values of the company that are evidenced in the
corporate culture and the general work ethic.
Style: the style of leadership adopted.
Staff: the employees and their general capabilities.
Skills: the actual skills and competencies of the employees working for the
company.

15. Pareto Analysis
 It is used to identify and prioritize problems to be
solved.
 It is actually frequency charts that is aided by the
80/20% rule adapted by Joseph Juran from
Vilfredo Pareto, the Italian economist.
 80% of the problems are created by … 20% of
the causes
10- 15

16. Pareto Analysis for Customer complaints related to
Restaurant
1 - 16
Conclusion: the Pareto chart
shows that 80% of the complaints
come from 20% of the complaint
types (Overpriced and Small
portions).

17. 1 - 17

18. Pareto Analysis
A Pareto chart combines a column chart and a line graph.
The Pareto principle states that, for many events, roughly
80% of the effects come from 20% of the causes.
In this example, we will see that 80% of the complaints
come from 2 out of 10 (20%) complaint types
1 - 18

19. Pareto Analysis
Steps used include:
Gathering categorical data relating to quality Problems
Drawing a frequency chart
Focusing on the tallest bars of the frequency chart first
10- 19

20. 1 - 20

21. Workshop
Create Team of 4
Select one of the following problem:
Inventory damage/loss
Nonconformity (defect) Product
Long lead time in supply chain
Decline of Employee productivity
High Employee turnover
Draw a fishbone diagram that demonstrates the causes of the selected
problem.
1 - 21