Workshop $4$: Cause$-$and$-$Effect Diagrams & Pareto Charts

The tools practiced in this workshop are:

$5$ whys$/$why$-$why analysis

$$ Cause$-$and$-$effect diagrams

$$ Pareto charts

In this workshop assume that you work for an organization that works to help victims of identity theft. Below are some facts about this problem.

$$ The FTC received $5\mathrm{.}7$ million total fraud and identity theft reports, $1\mathrm{.}4$ million of which were identity theft cases

$$ Government Documents or Benefits Fraud tops the list of identity theft types with $395,948$ reported cases

$$ Georgia reported the most identity theft cases

$$ The median loss of fraud cases for victims is about $$500$

$$ Total losses are estimated to be $$10\mathrm{.}2$ billion

In the Analyze phase of your Lean Six Sigma project, you decide to investigate potential causes for people who have experienced this issue. To do this, you plan to use $5$ whys$/$why$-$why analysis in conjunction with a cause$-$and$-$effect diagram. Then, you will collect data about the most significant potential causes of your problem and create a Pareto chart to determine the leading cause of this problem.

Instructions:

Use information from your slides in Analyze Phase Part $2$ to assist you with the activities that follow. Be sure to follow the $$best practices$$ for each tool you use in this workshop.

After completing your cause$-$and$-$effect diagram, reflect on all the items listed and select what you believe are the top five potential causes of identity theft $($these can be causes, sub$-$causes, and$/$or sub$-$sub$-$causes$).$ Please label these with the numbers $1-5,$ where $1$ represents what you believe is the leading cause of the problem. Then, obtain the file Workshop $4$ Pareto Chart Data.xlsx from Canvas. This file is meant to simulate the process of you collecting data about the top $5$ causes of your problem. Pretend the data in this file was collected from your observations and records. The data in this file are already $$coded$$ for you, so all you need to do is fill$-$in the $$key$$ and create the $$Bins$$ or number of bars $($based on the items you labeled $1-5$ in your cause$-$and$-$effect diagram$)$ so you will know what each number represents. You can then create your Pareto chart using this data in Microsoft Excel using the Analysis ToolPak add$-$in$.$ Use data for a group based on the following $($for this Workshop only$).$ Determine which tab on the spreadsheet to use from your last name.

Group A $$ Last name begins with A$-$D

Group B $$ Last name begins with E$-$H

Group C $$ Last name begins with I$-$L

Group D $$ Last name begins with M$-$P

Group E $$ Last name begins with Q$-$T

Group F $$ Last name begins with U$-$Z

$($see Activities on next page$)$

Activities:

$1.$ Create a cause$-$and$-$effect diagram $($using $5$ whys$/$why$-$why analysis$)$ that organizes potential causes for why the number of people experiencing identity theft is increasing. Remember to have causes, sub$-$causes, and sub$-$sub$-$causes. Use the Visio or PowerPoint template as a guide only. You should have much more detail than the template including more causes, sub$-$causes, and sub$-$sub$-$causes. Categories are not causes. There must be at least $5-6$ categories. I will grade the assignment on thoroughness and completeness.

$2.$ Circle and number the $5$ main causes of identity theft. These can be causes, sub$-$causes, or sub$-$sub$-$causes. See the examples.

$[$Paste your cause$-$and$-$effect here $($use template provided in Canvas$).$ Please ensure your work is readable on an $8(1)/(2)$ in$.$ x $11$ in$.$ piece of paper or you will not receive credit for your work.$]$

$3.$ Create a Pareto chart that depicts the causes for identity theft.

$[$Paste your Pareto Chart here $($use Excel and the Data Analysis ToolPak Excel add$-$in$-$required$).$ Please ensure your work is readable on an $8(1)/(2)$ in$.$ x $11$ in$.$ piece of paper or you will not receive credit for your work. Use black and white only.$]$

$4.$ Based on the Pareto chart you created for Activity #$2$ of this Workshop, what cause of the problem should you address first in your Lean Six Sigma project and why?

$5.$ Did the results of your Pareto chart surprise you $($i$.$e$.,$ was the order of the actual top $5$ causes of the problem shown in your Pareto chart different than what you had originally identified in your cause$-$and$-$effect diagram$)?$ What does this illustrate about the importance of collecting data about a problem versus using only instinct$/$intuition$?$

Last Names A$-$D:

Reasons for Identity Theft Key

$211=$

$52$

$232=$

$14$

$253=$

$1$

$24=$

$1$

$55=$

$2$

$1$

$2$

$2$

$1$

$3$

$2$

$2$

$3$

$5$

$3$

$2$

$2$

$5$

$5$

$2$

$3$

$4$

$2$

$3$

$3$

$1$

$1$

$3$

$1$

$2$

$2$

$2$

$2$

$1$

$2$

$3$

$1$

$1$

$2$

$3$

$1$

$3$

$3$

$1$

$1$

$2$

$2$

$1$

$3$

$2$

$2$

$5$

$5$

$3$

$2$

Last Names E$-$H:

Reasons for Identity Theft Key

$11=$

$3$

$12=$

$3$

$13=$

$2$

$14=$

$2$

$25=$

$2$

$2$

$3$

$2$

$3$

$3$

$2$

$1$

$2$

$1$

$1$

$1$

$1$

$2$

$2$

$2$

$1$

$3$

$3$

$1$

$3$

$5$

$5$

$3$

$1$

$4$

$4$

$5$

$2$

$3$

$2$

Same format for all other names