Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
What is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
How Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Geopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
In the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
Given the usefulness of the fishbone diagram, it is essential that every student of quality and six sigma know how to use it. To aid the students in learning, here is a step-by-step procedure of how a fishbone diagram must be drawn:
Step 1 - List The Effect (Problem) to the Right: A fishbone diagram can be used for exploration only once the effect (problem) is known to the participants. The very first step in the procedure is to write the effect and a draw an arrow from the left pointing towards the problem on the right.
Step 2 - Branch Out into Categories: From the central line drawn, several categories usually branch out. These categories can be custom defined. The definition of the categories is the primary structure in the brainstorming exercise. Choosing the wrong categories can have large scale implications.
However, in most cases pre-defined categories are used. Some of the most commonly used categories are as follows:
The 8 M’s in Manufacturing: (Famously Used By Toyota)
The 8 P’s in Service Industry:
The 5 P’s in Service Industry:
Specific Causes as Branches: Once these categories have been created, it is time to brainstorm. One of the most common methods is to select a category and go to every person one by one for suggestions. Every person can make only one suggestion in one round. If they do not have a suggestion they say pass. This must be continued till most people in the group are saying pass. Once all the possible causes have been listed out as sub-branches in the category, move on to the next category. Repeat till the diagram is full.
Refine and Highlight: Once the diagram is full and the brainstorming exercise is complete, it is now time to refine the number of causes. This is because, it is likely that the brainstorming exercise has come up with 50 to 100 causes which obviously cannot be focussed upon. Therefore causes are sometimes reduced to their root cause or are prioritized. This ensures that there is consensus upon what is more important in the process.
Repeat after a Few Days: A fishbone diagram if used once will not yield great results. It has to become a regular feature of the shop-floor like it has been in Toyota for all these years. Participating members are advised to “sleep over the issues” i.e. to mull over the issues and let the group know if they have developed some sort of insight. Repeated use and undiluted focus produce great results.
Ishikawa Diagram/Fish Bone Diagram Template
Fishbobne Cause and Effect Diagram
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