Causal Loop Diagram

What is CLD?

The CLD or commonly called causal loop diagram is an analytical tool that explains the dynamics of the system used to develop an understanding of the complex system of the connections. It usually aids in explaining the interrelation of the different variables present in the system.  This fundamental tool is essential in explaining how the system works in Six Sigma methodology. Although there are other analytical tools that could be used, there is still a great advantage in using tools that are comfortable and offers convenience.

Using of CLD as an alternative analytical tool for six sigma methodology is a unique discipline that provides a better understanding of the complex system. Thus, the causal loop diagram composed of a collection of nodes which in turn creates the feedback loops. The diagram is represented by the loops in general. The nodes of one or more references to the symptoms related to the problem while the rest of the nodes is the causal nodes which correspond to the source of the problem.

The causal loop diagram can be applied to six sigma in just a simple way of visualizing the intricate process involved and through identifying the cause of the problem. In addition, this delicate job of causal loop diagram provides insights how complex the process is. Because of the complex behavior of the system, causal loop diagram can easily make it easier to comprehend and understand.

Not just that. The causal loop diagram provides the systemic feedback involved in the process by just expressing how the X variable affects the Y variable and how the Y variable affects Z variable and this can flow in a series of cause and effect. By using CLD, it will be much easier to explain the interactions of the variables as well as the behavior involved in the entire system.

CLD and Applications

Since the CLD is mainly characterized by closed cycles presented in a diagram, it is the easiest form of presentation that can be understood by anyone who is seeking the interaction between the variables involved in the cycle. It can be used as a very good choice of model to some of the complex process.

A typical causal loops diagram consists of arrows that came together in a form of loops wherein each loop is labeled as R or B. the R is the reinforcing loop that describes the relationship and creating growth and collapse in the system. For example, if the person drives more of his car, the tendency is more gas to be used. And when they use more gas, they would spend more of their money just to buy a gas and the cause and effect go on and on like this. Another is, if the car owner spends more money just to buy gas, they will look for possible alternative methods in order for them spend less. And this involved the reinforcing loop feedback. This is how the causal loop diagram is applied in many cases.

— Slimane Zouggari