Purposes of using the Ishikawa method in business
Posted: Sun Dec 22, 2024 7:24 am
In business enterprises, the Ishikawa diagram is used for many purposes:
Analysis of the decline in sales volumes
Some companies are facing a decline in sales volumes, the reasons for which are not obvious. To find a solution, it is necessary to delve into the analysis. Possible factors are a decrease in the quality of goods or increased competition.
Analysis of the decline in sales volumes
Source: shutterstock.com
To solve the problem effectively, you need to clearly canada mobile number formulate the problems, propose hypotheses about possible reasons for their occurrence, develop an action plan, assign responsibility and set deadlines.
Low sales volumes, disruption of plans
The diagram will show the components that determine sales revenue. Once the data is available, researchers must analyze each of the key impact factors in detail.
Release of marriage
The Ishikawa analysis method helps to find the reasons that reduce the quality of the product. These reasons need to be ranked by importance and it is determined which of them can be eliminated immediately. For example, replacing materials or employees is more realistic than a complete re-equipment.
Deviation from approved regulations
When violations of standards occur systematically, it is necessary to construct a cause-and-effect diagram. The reasons may include, for example, the complexity of regulations, lack of supervision, low staff motivation, etc. Using the Ishikawa method will help identify the root causes and develop a plan to eliminate them.
For risk assessment
The Ishikawa method helps reduce risks associated with order fulfillment. Many problems in this segment can be prevented, for example, by changing the release dates if logistical difficulties arise with the supply of raw materials.
The Ishikawa diagram can help solve production problems, whether they are related to production processes, personnel or products. This tool clearly shows the causes of problems and helps to create a rational plan for their elimination.
Read also!
"Marketer's KPI - Key Indicators and Accurate Calculation"
Read more
Where does the work on constructing an Ishikawa diagram begin?
In working with the Ishikawa diagram, the first step is to formulate the problem that is in the “head of the fish”. The problem should be specific, clear and measurable. The next step is to identify the factors that influence it. For this, the 6M or 5M and 1P method is used, which identifies six key components that have the greatest impact on business processes. Each of them should be carefully analyzed.
Personnel (Man or People) is one of the main factors, including personnel and other people involved in the company's activities. It covers issues related to: assessment of knowledge and experience for compliance with standards, training, motivation of employees , the level of freedom of specialists in decision-making.
Machine includes the equipment used in the work. Important components of this factor are the capabilities of the machines, the frequency of maintenance, the degree of modernity, the accuracy of calibration and its reliability.
Materials (Material) covers the main raw materials and additional materials used in production and/or provision of services. This factor checks the quality of materials, their technical characteristics and conditions of transportation, storage and use.
Methods include procedures, work instructions, and scripts used to perform operations. It is important to analyze for excessive bureaucracy of processes and redundant instructional requirements to ensure that prescribed actions actually contribute to improving the functionality of the system, rather than being carried out formally.
Measurement includes metrics (measurements) to evaluate and control processes and the quality of products and services. In some cases, A/B testing is used. Evaluation can be difficult if measurements are inconsistent or difficult to perform.
Environment (Mother Nature) covers external influences that affect the production process. Includes physical conditions (weather, climate) and market conditions (trends, sanctions, location selection, etc.).
Once the factor analysis is complete, sub-causes should be identified to help establish cause-and-effect relationships. In multi-brain companies, it is important to brainstorm with not only management but also employees at different levels. For example, low wages, lack of internships, and insufficient employee qualifications can be sub-causes for personnel problems.
Analysis of the decline in sales volumes
Some companies are facing a decline in sales volumes, the reasons for which are not obvious. To find a solution, it is necessary to delve into the analysis. Possible factors are a decrease in the quality of goods or increased competition.
Analysis of the decline in sales volumes
Source: shutterstock.com
To solve the problem effectively, you need to clearly canada mobile number formulate the problems, propose hypotheses about possible reasons for their occurrence, develop an action plan, assign responsibility and set deadlines.
Low sales volumes, disruption of plans
The diagram will show the components that determine sales revenue. Once the data is available, researchers must analyze each of the key impact factors in detail.
Release of marriage
The Ishikawa analysis method helps to find the reasons that reduce the quality of the product. These reasons need to be ranked by importance and it is determined which of them can be eliminated immediately. For example, replacing materials or employees is more realistic than a complete re-equipment.
Deviation from approved regulations
When violations of standards occur systematically, it is necessary to construct a cause-and-effect diagram. The reasons may include, for example, the complexity of regulations, lack of supervision, low staff motivation, etc. Using the Ishikawa method will help identify the root causes and develop a plan to eliminate them.
For risk assessment
The Ishikawa method helps reduce risks associated with order fulfillment. Many problems in this segment can be prevented, for example, by changing the release dates if logistical difficulties arise with the supply of raw materials.
The Ishikawa diagram can help solve production problems, whether they are related to production processes, personnel or products. This tool clearly shows the causes of problems and helps to create a rational plan for their elimination.
Read also!
"Marketer's KPI - Key Indicators and Accurate Calculation"
Read more
Where does the work on constructing an Ishikawa diagram begin?
In working with the Ishikawa diagram, the first step is to formulate the problem that is in the “head of the fish”. The problem should be specific, clear and measurable. The next step is to identify the factors that influence it. For this, the 6M or 5M and 1P method is used, which identifies six key components that have the greatest impact on business processes. Each of them should be carefully analyzed.
Personnel (Man or People) is one of the main factors, including personnel and other people involved in the company's activities. It covers issues related to: assessment of knowledge and experience for compliance with standards, training, motivation of employees , the level of freedom of specialists in decision-making.
Machine includes the equipment used in the work. Important components of this factor are the capabilities of the machines, the frequency of maintenance, the degree of modernity, the accuracy of calibration and its reliability.
Materials (Material) covers the main raw materials and additional materials used in production and/or provision of services. This factor checks the quality of materials, their technical characteristics and conditions of transportation, storage and use.
Methods include procedures, work instructions, and scripts used to perform operations. It is important to analyze for excessive bureaucracy of processes and redundant instructional requirements to ensure that prescribed actions actually contribute to improving the functionality of the system, rather than being carried out formally.
Measurement includes metrics (measurements) to evaluate and control processes and the quality of products and services. In some cases, A/B testing is used. Evaluation can be difficult if measurements are inconsistent or difficult to perform.
Environment (Mother Nature) covers external influences that affect the production process. Includes physical conditions (weather, climate) and market conditions (trends, sanctions, location selection, etc.).
Once the factor analysis is complete, sub-causes should be identified to help establish cause-and-effect relationships. In multi-brain companies, it is important to brainstorm with not only management but also employees at different levels. For example, low wages, lack of internships, and insufficient employee qualifications can be sub-causes for personnel problems.