MBA IN PROJECT MANAGEMENT

MBBP2133 ( Project Quality Assurance, Human Resources & Communication Management

Name : Sarah Saud Fatmi

Student ID# : 11046509

Semester : 1

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Table of Contents

|Introduction: Cause & Effect Analysis |3 |
|General Principles |4 |
|Fishbone Chart and Ishiwaka Diagram |5 |
|The Four Stages of Cause & Effect Analysis |6 |
|Limitations of Cause & Effect Analysis |9 |
|Conclusion: Does Cause & Effect Analysis Work? |10 |
|Recommendation: Is Cause & Effect Analysis Right for Your Team? |10 |
|References |11 |
Introduction: Cause and Effect Analysis

When an organisation has a serious problem, they need to explore all the reasons behind it before trying to come up with a solution. This needs to be done so that the problem can be solved completely the first time around, rather than just addressing part of it and having the problem run on and on. This process is called “Cause and Effect Analysis”.

Professor Kaoru Ishikawa created Cause and Effect Analysis in the 1960s. The technique uses a diagram-based approach for thinking through all of the possible causes of a problem. This helps you to carry out a thorough analysis of the situation. There are four steps to using the tool. [1]

1. Identifying the problem and/or goals

2. Brainstorming; Work out the major factors involved

3. Chart Analysis; Identify possible causes

4. Analyse your diagram & develop an action plan

Cause and Effect Analysis can be used for both; looking forward to plan a chain of events, or looking backward to better understand one.

Cause and Effect: Looking Back

Cause and Effect analysis is typically used to figure out why something went wrong. However, it can also help you to replicate a positive outcome through the thorough results from the tool.

Cause and Effect: Planning for the Future

Although, “Cause and Effect Analysis” is classically used to understand previous events (usually to avoid repetition), it can also be used to help plan for the future. Rather than attempting to explain an existing outcome, it is possible to set up a hoped-for outcome, and then analyse the elements required to bring the outcome about. Once you have a clear idea of what’s needed, it’s much easier to create a plan of action that is likely to succeed.

Because the process of analysis involves breaking down the whole into a set of individual parts, you can also use the chart created through Cause and Effect Analysis to determine who should take responsibility for which aspects of the project. If you spent a good deal of time on the process, you may even have the start of a to-do list for various members of the project team. [2]

Cause and Effect Analysis gives you a useful way of doing this. This diagram-based technique, which combines Brainstorming with a type of Mind Map, pushes you to consider all possible causes of a problem, rather than just the ones that are most obvious.

General principles [3]

• The primary aim of root cause analysis is: to identify the factors that resulted in the nature, the magnitude, the location, and the timing of the harmful outcomes (consequences) of one or more past events; to determine what behaviours, actions, inactions, or conditions need to be changed; to prevent recurrence of similar harmful outcomes; and to identify lessons that may promote the achievement of better consequences. ("Success" is defined as the near-certain prevention of recurrence.)

• To be effective, root cause analysis must be performed systematically, usually as part of an investigation, with conclusions and root causes that are identified backed up by documented evidence. A team effort is typically required.

• There may be more than one root cause for an event or a problem, wherefore the difficult part is demonstrating the persistence and sustaining the effort required to determine them.

• The purpose of identifying all solutions to a problem is to prevent recurrence at lowest cost in the simplest way. If there are alternatives that are equally effective, then the simplest or lowest cost approach is preferred.

• The root causes identified will depend on the way in which the problem or event is defined. Effective problem statements and event descriptions (as failures, for example) are helpful and usually required to ensure the execution of appropriate analyses.

• One logical way to trace down root causes is by utilizing hierarchical clustering data-mining solutions (such as graph-theory-based data mining). A root cause is defined in that context as "the conditions that enable one or more causes". Root causes can be deductively sorted out from upper groups of which the groups include a specific cause.

• To be effective, the analysis should establish a sequence of events or timeline for understanding the relationships between contributory (causal) factors, root cause(s) and the defined problem or event to be prevented.

• Root cause analysis can help transform a reactive culture (one that reacts to problems) into a forward-looking culture (one that solves problems before they occur or escalate). More importantly, RCA reduces the frequency of problems occurring over time within the environment where the process is used.

• Root cause analysis as a force for change is a threat to many cultures and environments. Threats to cultures are often met with resistance. Other forms of management support may be required to achieve effectiveness and success with root cause analysis. For example, a "non-punitive" policy toward problem identifiers may be required.

Fishbone Chart and Ishikawa Diagram

The fishbone chart approach to cause and effect analysis uses a standard chart to encourage brainstorming and to visually present findings. When the chart is complete, it is possible to analyse findings together, and to determine the most important factors involved in either solving a problem or achieving success. There are four steps involved with cause and effect analysis. They include identification of the problem or goal, brainstorming, analysis, and development of an action plan.
[pic]

The diagrams that you create with are known as Ishikawa Diagrams or Fishbone Diagrams (because a completed diagram can look like the skeleton of a fish). Cause-and-effect diagrams can reveal key relationships among various variables, and the possible causes provide additional insight into process behaviour.

Although it was originally developed as a quality control tool, you can use the technique just as well in other ways. For instance, you can use it to: • Discover the root cause of a problem. • Uncover bottlenecks in your processes. A bottleneck is a stage in a process that causes the entire process to slow down. • Identify where and why a process isn't working.

The Four Stages of the Cause and Effect Analysis

Step 1: Identify the Problem.

The entire team must agree on the problem and on the goals in order for the process to be successful.

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Step 2: Brainstorm; Work out the Major Factors Involved

Next, identify the factors or “causes” that may be part of the problem. Often, it’s helpful to start with the general areas that are most likely to impact almost any business project; these become the primary bones of the fish. These may be systems, equipment, materials, external forces, people involved with the problem, and so on

Causes can be derived from brainstorming sessions. These groups can then be labelled as categories of the fishbone. They will typically be one of the traditional categories mentioned below but may be something unique to the application in a specific case. Causes can be traced back to root causes with the 5 Whys technique, which involves drilling down from apparent causes to deep-rooted issues.

Common Categories:

[pic]

Even these, however, are just suggestions. Many organizations come up with their own categories, selected to reflect their real-world situation.

[pic]

Step 3: Identify Possible Causes

This step involves some time reviewing the chart. It is very likely that major themes will begin to emerge during this. Major themes can be organised by their importance, or in chronological order.

For each of the factors considered in step 2, we need to brainstorm possible causes of the problem that may be related to the factor.

[pic]

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Step 4: Analyse Your Diagram

Based on your fish bone chart and your analysis, a clear set of priorities will emerge. These priorities will help to put together a plan that can be implemented immediately.

Limitations of Cause and Effect Analysis [4]

RCA is one of the most widely used methods to improving patient safety, but few data exist that uphold its effectiveness. The quality of RCA varies across facilities, and its effectiveness in lowering risk or improving medical safety has not been systematically established. The quality of RCA is dependent on the accuracy of the input data as well as the capability of the RCA team to appropriately use these data to create an action plan. In some cases, only one source of error or a few sources of error are emphasized, when in reality the situation might be more complex. The thoughts, conversations, and relationships of members play an important role in determining the effectiveness of an RCA team. People tend to select and interpret data to support their prior opinions. An atmosphere of trust, openness, and honesty is critical to encourage members to share what they know without fear of being criticized or unacknowledged. In addition, RCA lacks the ability to allow one to determine the probability, criticality, and severity of events, which can be useful for prioritizing management and preventing future undesirable events. RCA can be very time-consuming because of all the time required for data gathering, as the accuracy of the research is crucial. Organizations should ensure that adequate resources, time, and feedback are sufficiently provided during the RCA process so that the team will be able to carry out its task effectively.

Conclusion: Does Cause and Effect Analysis Work?

Like any other business tool, Cause and Effect Analysis is just as effective as the people involved in the process. It’s easy to do a poor job of identifying the problem and the causes—and if the first part of the process is done incorrectly, the outcomes will be less useful. That’s why it’s critical to have a leader who is familiar with the process, and why it’s so important that the people involved with the analysis fully understand the problem and can think realistically about solutions.

Recommendation: Is Cause and Effect Analysis Right for Our Team?

Cause and Effect Analysis may be a good tool for your organization—or it may create more troubles than it solves. Bottom line, if your team doesn’t have the time, authority, insight, or leadership to undertake meaningful Cause and Effect Analysis, you could find yourself wasting time while also creating negative interactions and frustration among your team members.

To determine whether this tool is likely to be useful to you, go through this checklist; if you find that you are answering most of the questions with a “yes,” then Cause and Effect Analysis may be a good choice.

• Do you have a concrete problem or goal upon which your team can agree?

• Can you put together a group of people who understand and have the authority to take action on the problem or goal you’re considering?

• Does your group have the time available (at least a few hours) to take part in a Cause and Effect Analysis?

• Do you have a facilitator (or have access to a facilitator) who has experience in leading this type of brainstorming process and who also understands your organization’s particular needs and parameters?

• Do you have dedicated space to use for a Cause and Effect Analysis?

If you feel you’re ready to undertake a Cause and Effect Analysis, congratulations! You’re well on your way to a better process for achieving your goals.

References

1. https://www.mindtools.com/pages/article/newTMC_03.htm

2. http://business.tutsplus.com/articles/get-started-with-cause-and-effect-analysis-using-a-fishbone-chart--cms-21178

3. https://en.wikipedia.org/wiki/Root_cause_analysis#General_principles

4. Shaqdan K, Aran S, Daftari Besheli L, Abujudeh H. Root-cause analysis and health failure mode and effect analysis: two leading techniques in health care quality assessment. J Am Coll Radiol. 2014 Jun; 11(6):572-9

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Title : Cause and Effect Analysis

Due Date : 19th April 2016

Lecturer : Dr Elmira Shamshiri