In: Operations Management
Planning/writing reports and proposals-
A large manufacturing company's directors want you to find out why there is a considerable drop in the production units in the previous financial quarter. What will do to find out the cause of the problem and recommend a solution to the problem.
In such a situation when one need to find the cause of a problem, one can use the Ishikawa diagram tool (also known as the fishbone diagram). It is a cause effect diagram that helps to find the cause of the underlying problems like low productivity, low quality etc.
An example of such a diagram is given below:
The problem is mentioned to the extreme right and its various causes are mentioned to its left in the form of a fishbone structure. Once all the causes are identified, one can start eliminating it one by one in order to solve the problem.
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