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".

BREAKING DOWN '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.

RELATED TERMS
  1. Tree Diagram

    A diagram used in strategic decision making, valuation or probability ...
  2. Venn Diagram

    An illustration that uses overlapping or non-overlapping circles ...
  3. Decision Analysis - DA

    A systematic, quantitative and visual approach to addressing ...
  4. Organizational Chart

    A diagram that outlines the internal structure of a company. ...
  5. Quality Control

    A process through which a business seeks to ensure that product ...
  6. Functional Decomposition

    A method of business analysis that dissects a complex business ...
Related Articles
  1. Investing

    British Pound Slumps for 2nd Trading Day on Brexit

    British pound tumbles on political uncertainty, Euro fall and U.K. downgrade.
  2. Trading

    Prices Plunging? Buy A Put!

    You can make money on a falling stock. Find out how going long on a put can lead to profits.
  3. Investing

    NYIF Instructor Series: Synthetic Stock

    In this short instructional video Anton Theunissen explains how to replicate a levered stock using a combination of options.
  4. Trading

    NYIF Instructor Series: Married Put

    In this short instructional video Anton Theunissen explains what a married put is and how it works.
  5. Small Business

    What's Involved in Quality Management?

    Essentially, quality management entails overseeing all activities and tasks needed to maintain excellence.
  6. Investing

    What's the J-Curve Effect?

    A J-curve effect appears on a chart or diagram when the curve falls at the outset and then eventually rises to a higher point than where it started.
  7. Trading

    Options Hazards That Can Bruise Your Portfolio

    Learn the top three risks and how they can affect you on either side of an options trade.
  8. Small Business

    Explaining Quality Control

    Businesses use quality control to ensure their products and services meet a certain standard, as well as any industry regulations.
  9. Investing

    The History and Purpose of TQM

    Total quality management explores processes to enhance quality and productivity.
  10. Investing

    Avoid These Overvalued Blue Chips with Poor Financials (APA, CBS)

    When you are looking for bargains in the stock market, limit your buying to stocks with a verified strong fiancial condition.
RELATED FAQS
  1. A diagram of yields on debt instruments shows that short-term interest rates are ...

    The correct answer is a. An inverted—or negative—yield curve is an unusual situation that generally indicates an unhealthy ... Read Answer >>
  2. What careers are popular among CFA charterholders?

    CFA Institute indicates on its website that CFA charterholders represent all investment professional careers within all types ... Read Answer >>
  3. How does the Circular Flow Of Income model work?

    Learn about the circular flow of income model used by economists to represent the continuous, interdependent nature of money ... Read Answer >>
  4. How do you determine the Critical Path in operations management?

    Find out how to develop and use the critical path in a standard critical path analysis, a popular operations management technique ... Read Answer >>
  5. What is the best way to measure the total market?

    There is a variety of market indices which function as statistical gauges of the market's activities. Many investors look ... Read Answer >>
  6. Short selling vs. purchasing a put option: how do the payoffs differ?

    Purchasing a put option and entering into a short sale transaction are the two most common ways for traders to profit when ... Read Answer >>
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center