Ishikawa Diagram

Filed Under:
Dictionary Says

Definition of 'Ishikawa Diagram'


A diagram that shows the causes of an event and is often used in manufacturing and product development to outline the different steps in a process, demonstrate where quality control issues might arise and determine which resources are required at specific times. The Ishikawa diagram was developed by Kaoru Ishikawa during the 1960s as a way of measuring quality control processes in the shipbuilding industry.

Also referred to as a "fish bone diagram" or "cause-and-effect diagram".

Investopedia Says

Investopedia explains 'Ishikawa Diagram'


Ishikawa diagrams are sometimes referred to as "fish bone" diagrams because they resemble a fish skeleton, with the "ribs" representing the causes of an event and the final outcome appearing at the head of the skeleton. The purpose of the Ishikawa diagram is to allow management to determine which issues have to be addressed in order to gain or avoid a particular event.

comments powered by Disqus
Hot Definitions
  1. Closed-End Fund

    A closed-end fund is a publicly traded investment company that raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange.
  2. Payday Loan

    A type of short-term borrowing where an individual borrows a small amount at a very high rate of interest. The borrower typically writes a post-dated personal check in the amount they wish to borrow plus a fee in exchange for cash.
  3. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  4. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  5. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  6. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
Trading Center