Solution Model: Cause and Effect Diagram

The organization that we have chosen is Laleli Olive Oil which is operating in Queensbay Mall, Penang. We have decided to use the Cause and Effect Diagram or also known as the Fishbone Diagram to develop an innovation to a particular aspect of organization. Cause and Effect Diagram provides structure for evaluating possible causes and narrowing the field down to the most likely cause. Their most common use is for the analysis of possible causes. Creating the diagram typically starts with the identification of potential causes and gradually, through a process of elimination, moves to the root cause.

The cause to the problems faced by Laleli Olive Oil in producing their products include machines, materials, manpower and methods.

Machines:
The machines are rusted machines and they are slow and run down.

Materials:
The inventory check which is not done systematically and also low quality materials from the suppliers.

Manpower:
Shortage of manpower, workers that lack of experience, tardy managers.

Methods:
products are not well known by many consumers, company does not offer delivery service.


These problems faced by Laleli Olive Oil will have negative effects on their profits/sales. There fore solutions have been thought of to improve these problems. Example, the company must check the machines at least once a month and service them quarterly.