CE Matrix Example

CE Matrix Example

Problem Statement

Use the C&E Matrix to determine which are the most important causes decline in sales. The team wants to evaluate these causes based on the following criteria: Generation of Sales, Cost, Quality. Use the C&E matrix to determine the most important causes.

How to perform analysis

Step 1: Open Sigma Magic
  1. Click on the Sigma Magic button on the Excel toolbar.
  2. Click on the New button to create a new project.
Step 2: Add the analysis template
  1. Click on the Tool Wizard to add the analysis template.
  2. Click on Project and then CE Matrix.


Step 3: Specify analysis options
A new worksheet will be added to your workbook. Analysis Setup will be automatically opened, in the setup tab specify the following details.



If you need to make changes to the charts, specify the optional settings in the Charts tab.

 Labels:

  • Add a title for the chart.
  • Label the X-axis and Y-axis appropriately.

Appearance:

  • Adjust colors, font sizes, or other visual elements as needed.
  • Enable/disable gridlines or background shading.


Step 4: Enter the details in worksheet
Click Create, the worksheet will created and then enter all the details. A sample is provided below:




Click the Verify tab to ensure all the inputs are okay and shown in a green checkmark.




Step 5: Generate analysis result
Click OK and then click Compute Outputs to get the final results



Interpretating Results

 Identification of Key Causes:

  • The matrix evaluates five potential causes contributing to a problem, each assessed for its impact on three different effects.
  • The causes include salesperson skills, product features, customer requirements, follow-up, and adequacy of resources.

  Ranking of Causes:

  • Based on the total scores, the most significant cause is "Salesperson lacks skills" (score: 169, Rank: 1), indicating a major factor affecting performance.
  • The least influential cause is "Product Features" (score: 79, Rank: 5), meaning it has the lowest contribution to the problem.

  Weighted Importance Ratings:

  • The importance ratings (9, 9, 7) suggest that different effects have varying levels of influence.
  • Higher ratings indicate a greater impact of certain causes on specific effects.

  Pareto Analysis:

  • The Pareto Plot visually represents the contribution of each cause to the total problem.
  • The red cumulative line shows that addressing the top two causes (salesperson skills and adequacy) will likely solve the majority of the issue due to the 80/20 principle.

  Strategic Action Focus:

  • Improving salesperson skills should be the top priority as it has the highest score.
  • Ensuring adequacy (Rank 2, Score 133) is another crucial area that requires attention.

  Potential Improvements & Decision-Making:

  • Training programs, better product positioning, and enhanced customer requirement analysis could improve performance.
  • Follow-up processes (Rank 4) need optimization to strengthen customer engagement.
  • Addressing high-ranking causes will drive significant improvement in overall outcomes.

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