5 Minute Lesson Continuous Improvement Methods CauseandEffect Diagrams

5 Minute Lesson: Continuous Improvement Methods Cause-and-Effect Diagrams & Pareto Charts 7 Basic Quality Control (Old) Tools Dr. Jamison V. Kovach Assistant Professor, College of Technology & Director, UH-Six Sigma Program Phone: 713 -743 -1704 Email: jvkovach@uh. edu Website: www. uhsixsigma. com

Cause-and-Effect Diagrams Basic Format: Purpose: • Used to structure a brainstorming session – Sorts ideas into useful categories • Focuses a team on the causes, rather than the symptoms of a problem Also known as: Ishikawa diagram Fishbone diagram – Identification of the possible causes puts the team in the position to develop appropriate solutions 2

Constructing a Cause-and-Effect Diagram Categories: – 5 M’s: Material, man, method, machine, mother nature – 5 P’s: People, places, politics, processes, procedures 3

Iron Contamination Example 4

Retail Example 5

Shade Variation Example 6

Pareto Charts Frequency Basic Format: Categories A type of bar graph (aided by the 80/20 rule) Purpose: • Used to identify and prioritize problems to be solved • The lengths of the bars represent frequency or cost (time or money) associated with the different categories • Aids in choosing a starting point for improvement • Visually depicts which problems are more significant 7

Information Systems Example Analysis of Types of Complaints 80% of Complaints 8

Insurance Example 9

Inventory Loss Example Pareto charts are easily created using statistical add-ins found in Excel or using a statistical software package, such as Minitab or JMP. 10

5 Minute Lesson: Continuous Improvement Methods Dr. Jamison V. Kovach Assistant Professor, College of Technology Director, UH-Six Sigma Program Phone: 713 -743 -1704 Email: jvkovach@uh. edu www. tmacgc. org www. uhsixsigma. com