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Figure 4.4 shows the basic layout of a cause-and-effect diagram.Some commonly used categories are as follows: o Methods, materials, machinery, and people (3Ms and P); o Policies, procedure, people, and plant (4Ps); and o Another possible significant fifth factor is the environment.The steps for constructing and analyzing a Cause-and-Effect Diagram are outlined below: 1.It is a good practice to develop an Operational Definition of the effect to ensure that it is clearly understood by all team members.These are the labels for the major branches of the diagram and become categories under which to list the many causes related to those categories.Identify more detailed levels of causes and continue organizing them under related causes or categories.Draw a horizontal arrow pointing to the right.2.4.5.6.

Figure 4.4 shows the basic layout of a cause-and-effect diagram. Notice that the diagram has a cause side and an effect side. The steps for constructing and analyzing a Cause-and-Effect Diagram are outlined below:

1. Identify and clearly define the problem or effect to be analyzed. It is a good practice to develop an Operational Definition of the effect to ensure that it is clearly understood by all team members.


2. Draw a horizontal arrow pointing to the right. This is the spine. To the right of the arrow, write a brief description of the effect or problem to be analyzed


3. Identify the main causes contributing to the effect being studied. These are the labels for the major branches of the diagram and become categories under which to list the many causes related to those categories. Some commonly used categories are as follows:
   • Methods, materials, machinery, and people (3Ms and P);
   • Policies, procedure, people, and plant (4Ps); and
   • Another possible significant fifth factor is the environment.


4. For each major branch or category, identify other specific factors which may be the causes of the effect under that category. Identify as many causes or factors as possible and attach them as sub-branches of the major branches.


5. Identify more detailed levels of causes and continue organizing them under related causes or categories.


6. Analyze the diagram. Analysis helps you identify causes that warrant further investigation. Since cause-and-effect diagrams identify only possible causes, you may want to use a Pareto Chart to help determine the causes to focus on first.