FISHBONE DIAGRAM

Definition

• Also called: cause-and-effect diagram, Ishikawa diagram
• Variations: cause enumeration diagram, process fishbone, time-delay fishbone, CEDAC, desired-result fishbone, reverse fishbone diagram
• Purpose: Identifies many possible causes for an effect or problem
• Use: Structures brainstorming sessions, sorts ideas into categories

Fishbone Diagram Procedure

• Materials Needed: Marking pens, flipchart or whiteboard
• Steps:
  1. Agree on a problem statement (effect): Write at the center right of the flipchart/whiteboard, draw a box around it, and draw a horizontal arrow pointing to it.
  2. Brainstorm major categories of causes: Use generic headings if needed:
     • Methods
     • Machines (equipment)
     • People (manpower)
     • Materials
     • Measurement
     • Environment
  3. Write categories as branches from the main arrow.
  4. Brainstorm all possible causes: Ask "Why does this happen?" and write each idea as a branch from the appropriate category.
  5. Ask "Why?" for each cause: Write sub-causes branching off the main causes. Continue until deeper levels of causes are generated.
  6. Focus on areas with few ideas when brainstorming runs out.

Fishbone Diagram Example

• Scenario: Manufacturing team addressing periodic iron contamination
• Categories Used: Methods, Machines, People, Materials, Measurement, Environment
• Process:
  • Ideas like "materials of construction" under "Machines" with specific equipment and machine numbers
  • Some ideas appear in multiple categories (e.g., "Calibration" under Methods and Measurement, "Iron tools" under Methods and Manpower)

PARETO CHART

• Definition: Combines bars (individual values in descending order) and a line graph (cumulative total).
• Named After: Vilfredo Pareto, an Italian economist; related to the Pareto principle.
• Axes:
  • Left Vertical Axis: Frequency, cost, or another unit of measure.
  • Right Vertical Axis: Cumulative percentage of total occurrences or cost.
• Cumulative Function: Values are in decreasing order, making the cumulative line concave.
• Example Use: Solving the top three issues can reduce late arrivals by 78%.
• Purpose: Highlights the most important factors in a large set.
  • Quality Control: Identifies key defects or common sources of problems.
• Tools: Can be created using spreadsheet programs, statistical software, and online generators.
• Quality Control: One of the seven basic tools used in quality control.
• Statistical Acceptance Limits: Algorithm by Wilkinson (2006) for confidence intervals on each bar.

PERFORMANCE APPRAISAL

• Definition: Periodic, systematic evaluation of an employee's job performance.
• Purpose: Part of career development, providing regular performance reviews.
• Conducted by: Usually an immediate manager or line manager.

Main Features

• Systematic Process: Assesses job performance against pre-established criteria and objectives.
• Evaluation Aspects: Includes organizational citizenship, accomplishments, potential for improvement, strengths, and weaknesses.
• Data Collection Methods:
  • Objective production
  • Personnel
  • Judgmental evaluation (most common)
• Cycle Frequency: Historically annual, shifting towards shorter cycles (bi-weekly, quarterly).

Performance Management Systems

• Role: Align organizational resources to achieve high performance and eliminate distractions.
• Impact: Determines organizational success or failure.
• Improvement Priority: Enhancing PA is crucial for contemporary organizations.

Applications of Performance Appraisals

• Employment Decisions: Promotions, terminations, transfers.
• Communication Aid: Clarifies expectations and performance status.
• Training Objectives: Identifies areas for training and development.
• Documentation: Maintains records for decisions and legal requirements.
• Job Criteria Formulation: Helps in selecting suitable individuals for tasks.

Work Motivation: Uses reward systems to boost motivation.