Cause and effect diagrams help us understand processes of bead production at the company. This will enable us identify, explore and graphically display all the possible causes and related problems of bead production. The processes involve four stages. We shall use the information six team members gave in their reports so as to identify categories of cause and effect relations (Rose, 2005). Cause and effect seeks to identify and define the problem. It also looks at the extent of the problem under scrutiny. The method works better when limited to specific areas. This is because it may be difficult to understand multiple and broad areas in production processes. The next element of processes of production looks at the major categories of causes. The analysis process identifies that causes of a problem consist of unique sets of varied problems. There are general categories causing problems in the production processes. These categories consist of people, machines, procedures and policies. However, for effective analysis, the process should only look at the relevant category of causes, which are specific to the problem. For instance, the control chart at Beads R Us analysis shows that the system (machine) is stable and shows predictable results. Therefore, the investigator rules out system-causes and focuses on other categories such as people. The analysis process decomposes major causes down to several levels. The decomposition process provides a careful analysis of each cause and determines the elements within the category that might cause the problem under investigation. Decomposition process further goes to analyze the sub-elements that might be contributing to the problem. This process goes on till the investigator is sure that the analysis process is complete. For example, in people-cause problems, the project analysis focuses on variables related to training, apprenticeship period, and motivation, among other elements. The final process of analysis dwells at identification of root causes. A review of cause and effect diagram reveals multiple occurrences of problem causes. A problem may arise from a variable with multiple occurrences in various production processes. The Bead R Us production processes reveal no system, performance defects. The system elements interact, but the red beads determine results. The system produces predictable results. Therefore, influence of system on the results in this process is negligible. At the same time, some factors that are most likely to influence performance, but are not relevant, and have no effect to system performance include excessive inspection, quotas, slogans, exhortations to perform well, rewards and punishments, and management by facilitators. Therefore, a normal system at 85% should determine the performance of a worker, while rest 15% depends on the worker’s effort in performing well. This indicates that there are no aspects of production beyond a worker’s control. The report of the six team members shows various categories that create problems resulting into defect beads. The report identifies that training is inadequate. The process at Bead R Us does not give new workers any training opportunities. Beads R Us has a policy of on-the-job training whereby new workers join the work force and copy what the next worker is doing. The company on