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Will an OBD system indicate the source of the problem ?

Answer:
An OBD system will only indicate a problem with a sensor. For instance, your ECM (Electronic Computer Module) watches the sensors in the car to make everything is running smoothly. If a sensor malfunctions or a part needs to be repaired that interferes with the sensor, then your check engine light will go on. That is your ECM kicking in to tell you about your problem. So your OBD is the type of ECM connection and configuration, so yes it’ll notice and indicate problems that it can pick up, but it won’t notice a problem where a sensor doesn’t lay or reside.

Here are a couple examples:

If your catalytic converter rusts out, your oxygen sensor will almost positively malfunction. Thus, causing your Check engine light to go on. And then you could plug an OBD reader or scanner into the port to find that your oxygen sensor isn’t picking up enough oxygen. Then you’d check and see the catalytic converter rusted out. And you found your problem.

If your brake shoes or pads are defective or wearing too, your OBD/ECM system will not pick that up because there aren’t sensors in brake systems. That is something you would have to look up.

If there’s anything I didn’t cover or if you have any other questions feel free to ask. Good luck.

no
but sometimes