National Occupational Competency Testing Institute (NOCTI) Business Practice Exam

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What is the role of a fishbone diagram in problem-solving?

To evaluate the financial impact of a problem
To categorize potential causes for easier analysis
To create an action plan for resolution
To ensure compliance with regulations

The correct answer is: To categorize potential causes for easier analysis

A fishbone diagram, also known as an Ishikawa or cause-and-effect diagram, is primarily used in problem-solving to categorize potential causes of a problem for easier analysis. This visual tool helps teams systematically explore the root causes of an issue by branching out various categories that can contribute to the problem, such as people, processes, materials, and environment. By organizing potential causes in this manner, it allows for a more thorough examination and facilitates brainstorming among team members, ensuring that discussions are structured and that all possible factors are considered. This method not only clarifies the relationship between different causes and the problem but also aids in prioritizing which areas should be investigated further or addressed, ultimately leading to a more effective resolution. While evaluating the financial impact of a problem, creating an action plan, and ensuring compliance with regulations are important aspects of overall problem-solving and decision-making, they are not the primary function of a fishbone diagram. The diagram's strength lies in its ability to organize and categorize potential reasons for an issue, making it a valuable tool early in the problem-solving process.