12. seven management & planning tools

QUALITY TOOLS & TECHNIQUES

By: -Hakeem–Ur–Rehman

Certified Six Sigma Black Belt (SQII – Singapore)IRCA (UK) Lead Auditor ISO 9001

MS–Total Quality Management (P.U.)MSc (Information & Operations Management) (P.U.)

IQTM–PU1

TQ TSEVEN MANAGEMENT & PLANNING

TOOLS

What are the

New Seven Management & Planning Tools?

1. Affinity Diagrams

2. Relations Diagrams

3. Tree Diagrams

4. Matrix Diagrams

5. Arrow Diagrams

6. Priority Matrix / Matrix Data Analysis

7. Process Decision Program Charts

History of the

New 7 Management Tools Committee of J.U.S.E. (Union of Japanese Scientists

and Engineers) - 1972

Aim was to develop more QC techniques with design

approach

Work in conjunction with original Basic Seven Tools

New set of methods (N7) - 1977

Developed to organize verbal data diagrammatically.

Basic 7 tools effective for data analysis, process

control, and quality improvement (numerical data)

Used together increases TQM effectiveness

What are the

Basic 7 Q.C. Tools?

1. Flow Charts

2. Run Charts

3. Histograms

4. Pareto Diagrams

5. Cause and Effect Diagrams

6. Scatter Diagrams

7. Control Charts

Relation Between New Seven Management Tools and Basic Seven Q.C. Tools

FACTS

Data

Numerical Data Verbal Data

Organize

The Seven New Tools

Information

The Basic Seven Tools

Generate Ideas

Formulate plans

Analytical approach

Define problem after collecting numerical data

Define problem before collecting numerical data

Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)

SEVEN MANAGEMENT & PLANNING TOOLS TYPICAL FLOW

6

AFFINITY DIAGRAM

INTERRELATIONSHIP DIGRAPH

Creative Logical

TREE DIAGRAM / SYSTEM FLOW

PRIORITIZATION MATRICES

MATRIX DIAGRAM

Unknown known

PROCESS DECISION PROGRAM CHART

ACTIVITY NETWORK DIAGRAM

SOURCE: M. Brassard, “The Memory Jogger II”, Goal/QPC. Boston, 2004

AFFINITY DIAGRAM “A diagram that is used as a method of sorting qualitative data, which

usually comes in the form of short phrases or sentences (eg. 'Customersare unhappy with delivery delays'). “

Affinity Diagrams are most commonly built using the 'KJ' method (namedafter Kawakita Jiro, its originator), which aims to stimulate creative,'right-brained' thought, rather than logical 'left-brained' thought, bybanning discussion during the building of the diagram.

1. Modification of traditional Brainstorming method2. Technique to generate ideas and linkup with other ideas to

form common ideas3. Facilitates breakthrough thinking and stimulate fresh ideas4. Effective tool for cutting through confusion and bringing a

problem clearly into view5. Widely used in the sorting stages6. Develops consensus and team sprit among the members/

teams

HOW TO MAKE AFFINITY DIAGRAM?

1. Problem is written on the center of the board2. Each team/ member generates ideas to find the causes

of the problem3. Each team/ member is encouraged to give more and

more ideas4. Ideas are written on a small piece of paper (normally

3” x 5”)5. Each paper is placed on the board around the problem6. Team study and categories the similar ideas by

consensus7. Ideas are reduced to a workable number of ideas and a

border line is drawn around these ideas

AFFINITY DIAGRAM: EXAMPLE

Ambiguous Material

PROBLEMDEFECTIVE INCOMING MATERIALS

No Contract Review

Lack of Skills of Employees (Supplier)

Supplier Provided Poor

Quality of Materials

Poor Performing Equipment

Lack of Skills of Employees

(Purchasing Dept.)

Policy not Clear

Not Systematic

AFFINITY DIAGRAM: EXAMPLE (Cont…)

Ambiguous Material

PROBLEM

DEFECTIVE INCOMING MATERIALS

No Contract Review

Supplier provided Poor Quality of

Materials

Poor Performing Equipment

Policy not Clear

Not Systematic

Lack of Skills of Employees (Supplier)

Lack of Skills of Employees

(Purchasing Dept.)

Material Specifications

Supplier Commitment

Unsystematic Purchase

Department

RELATION / RELATIONSHIP DIAGRAM

The Relation Diagrams are used for finding appropriatesolution strategies by clarifying the causes of theproblem using why, why technique.

Also known as Interrelationship Diagraph

1. Technique for clarifying the complex issues byconsidering the numerous possible causes

2. Useful tools for finding appropriate strategies byrelating different causes of a problem

3. Enables to identify the root causes of the problem

HOW TO MAKE RELATION DIAGRAM?

Activity normally carried out after Affinity Diagram

1. Place the problem in the center2. Write primary causes of the problem round it3. Determine the secondary, tertiary, 4th & 5th level

causes by repeating why, why about 5-times4. Review the whole diagram and systematically explore

the relationships among these causes5. Many causes at 4th & 5th stage may have the common

reasons6. Combine such reasons to reach the root cause of the

problem

COMPLETING A RELATION DIAGRAM?

Why doesn’t

X happen?

Primary Cause

Primary Cause

Primary Cause

Primary Cause

Tertiary

Cause

Secondary

Cause

Secondary

Cause

Secondary

Cause

Secondary

Cause

Tertiary

Cause

4th level

Cause

Tertiary

Cause

Tertiary

Cause

4th level

Cause5th level

Cause

6th level

Cause

Tertiary

Cause

Secondary

Cause

EXAMPLE: RELATION DIAGRAM

Defective incoming Material

Ambiguous Specifications

Poor quality materials used

by supplier

Poor quality of equipment

Unskilled employees of

suppliers

Lack of Commitment of

Supplier

No contract review of

specifications

Policy not Clear

Unsystematic purchase

department

Lack of Skills of employees

Root Causes: “A cause, which has noincoming arrow, is called a root cause.There are three root cause. But, themost important root cause is the onewith maximum number of outgoingarrows. This is also called Driver.

Measure of Success: “Acause, which has maximumnumber of incoming arrows,is called an outcome. It willalso be a good measure ofsuccess.”

TREE DIAGRAM

Also known as Systematic Diagram

Tree Diagrams are drawn to develop a succession ofstrategies/ means for achieving an objective (target, goal orresult) systematically and logically.

Constructing this diagram yields specific guidelines forsolving a problem.

Tree Diagrams are also classified as strategy-development orcomponent development diagrams.

HOW TO MAKE TREE DIAGRAM?

Write the objective on the left side

Think different strategies to achieve theseobjectives in the form of primary branches

Again think different means to accomplish thesestrategies in the form of secondary branches

In this way keep on stratifying till you find easysolutions of a bigger problem

EXAMPLE: TREE DIAGRAMROGER’S TAKE–OUT PIZZA

CATEGORY OBJECTIVE STRATEGY

PRODUCT

SERVICE

Extra Value

Delivered Hot

Extra Meat

More Cheese

Fresh Vegetables

30 Min. Max Wait

Courteous order takers

Friendly Drivers

Heated Compartments in Delivery Vans

Optimum Routing

Batch Delivery

Employee Training

Driver Rotation

Employee Training

MATRIX DIAGRAMMatrix Diagrams enable the data based on ideas to beemployed effectively for examining the relationships.They clarify the relationship among the different elementsbased on verbal data (attribute data) like the scatter diagramsshow the correlation between different parameters based onnumerical data (variable data)

1. Two dimensional array of columns and rows whoseintersections are examined to determine the relationship

2. Used to systematically analyze the correlation between twosets of attribute data

3. Sets of data are compared in rows and columns4. Where rows and columns meet relationship code like strong

weak or no relation can be inserted5. Explores relationship among the attributes of rows and

columns

EXAMPLE: MATRIX DIAGRAM

Partial Matrix Program Chart for Roger’s Take-Out Pizza

Improved Improved Improved Improved

Action Employee Kitchen Delivery Controls

Objective Training Process Process

30 Min. Max. Wait

Friendly Drivers

Courteous Order Takers

KEY: Strong relationship

Moderate relationship

Weak relationship

ARROW DIAGRAM Imagine that you have used a Tree Diagram or a Matrix Diagram to

decide on the best possible strategies for solving a problem.

The next question that arises is when and in what order to perform thenumerous operations required to implement these strategies.

Arrow diagrams are useful for planning this kind of action. They show thesequence and relationships among different activities effectively. Theyalso indicate how altering one operation will effect the other and whichactivities are critical to the time schedule and which have some slack orspare time.

Also known as Activity Network diagram

1. Used in PERT (Program Evaluation and Review Technique) and CPM(Critical Path Method)

2. Who is going to do what and when?3. What can be done in parallel & what can be done only in series?4. Planning Aid for construction projects & large manufacturing units

EXAMPLE: ARROW DIAGRAMConsider the following data:

Activity Description Immediate Predecessor(s)

A Select administrative and medical staff -

B Select site and do site survey -

C Select equipment A

D Prepare final construction plans and layout B

E Bring utilities to the site B

F Interview applicants and fill positions in nursing, support staff, maintenance, & security

A

G Purchase and take delivery of equipment C

H Construct the hospital D

I Develop an information system A

J Install the equipment E, G, H

K Train nurses and support staff F, I, J

Draw the ARROW Diagram.

EXAMPLE: ARROW DIAGRAM

1

2

4

3

56

7

8

9

A

B

C

D

H

E

I

G

F

KJ

Activity Description Immediate Predecessor(s)

A Procurement of parts for sub – assembly ‘1’ None

B Procurement of parts for sub – assembly ‘2’ None

C Procurement of parts for sub – assembly ‘3’ None

D Building sub – assembly ‘1’ A

E Building sub – assembly ‘2’ B

F Building sub – assembly ‘4’ D,E

G Building sub – assembly ‘3’ B,C

H Building the final product F,G

I Final Test H

Develop the ARROW DIAGRAM

QUESTION: ARROW DIAGRAM

CRITICAL PATH METHOD: EXAMPLE

1 8

2

6

4

3

7

a, 6

f, 15

b, 8

c, 5e, 9

d, 13

g, 17 h, 9

i, 6

j, 12

5

EXAMPLE: ARROW DIAGRAM (Cont…)

ES and EF Times

1 8

2

6

4

3

7

a, 6

f, 15

b, 8

c, 5

e, 9

d, 13

g, 17 h, 9

i, 6

j, 12

5

0 6

0 8

0 5

5 14

8 21 21 33

6 23 21 30

23 29

6 21

Project’s EF = 33


CPM: EXAMPLE

LS and LF Times

1 8

2

6

4

3

7

a, 6

f, 15

b, 8

c, 5

e, 9

d, 13

g, 17

h, 9

i, 6

j, 12

5

0 6

0 8

0 5

5 14

8 21 21 33

6 23

21 30

23 29

6 21

3 9

0 8

7 12

12 21

21 33

27 33

8 21

10 27

24 33

9 24


CPM: EXAMPLE

SLACK

1 8

2

6

4

3

7

a, 6

f, 15

b, 8

c, 5

e, 9

d, 13

g, 17

h, 9

i, 6

j, 12

5

0 6

0 8

0 5

5 14

8 21 21 33

6 23

21 30

23 29

6 21

3 9

0 8

7 12

12 21

21 33

27 33

8 21

10 27

24 33

9 24

3 4

3

3

4

0

0

7

7

0


CPM: EXAMPLE

CRITICAL PATH

1 8

2

6

4

3

7

a, 6

f, 15

b, 8

c, 5

e, 9

d, 13

g, 17 h, 9

i, 6

j, 12

5


CPM: EXAMPLE

Critical Path:

1 3 7 8

Activities on the Critical Path:

b d j

Total Project Time:

8+13+12 = 33


CPM: EXAMPLE

Network Information

Country Engineers Design Department

ACTIVITY DESCRIPTION PROCEDING ACTIVITY

ACTIVITY TIME

(Duration)

A Application Approval

None 5

B Construction Plans A 15

C Traffic Study A 10

D Service Availability Check

A 5

E Staff Report B,C 15

F Commission Approval

B,C,D 10

G Wait for Construction

F 170

H Occupancy E,G 35

QUESTION: ARROW DIAGRAMCPM: QUESTION

PRIORITY MATRIX It is just a kind of matrix in which same attributes/ strategies/ tasks are

written both horizontally and vertically. Then instead of findingrelationship among two different attributes, the importance of horizontallyplaced attributes is compared with the vertically placed attribute.

In this way the importance of each task when compared to all other tasksbecome visible.

This type of matrix is drawn when there are many tasks but there are notenough resources. So instead of just thinking which tasks are moreimportant, the Priority Matrix is drawn.

Priority matrix is used when

1. There are more tasks than available resources2. Numerous possibilities/ multiple choices exists3. Selection criteria is complicated4. Prioritizing between several viable options

EXAMPLE: PRIORITY MATRIX

There can be a number of requirements when you are going to buy anew car but just for the sake of easy understanding of how to make aPriority Matrix only four attributes of a car are chosen for prioritization.

These are superior sound system, fully automatic windows, fuel economyand four wheel drive.

PROCESS DECISION PROGRAM CHART

A framework for developing contingency plans

Starts with a tree diagram

Negative outcomes are considered for each branch

Contingency plans are listed

1. Tool for anticipating uncertainties2. Contingency Plans for what could go wrong3. Resemble FMEA4. List the possible problems5. Decide measures to be taken to solve those problems6. Very useful when starting new procedure or project

PROCESS DECISION PROGRAM CHART: EXAMPLE

GIVE GUEST LECTUREOBJECTIVE

Car to reach venue

STEPS Use laptopUse video projector

Car breaks down

WHAT IF?

Hire a car

Take a public

transport

O

X

File not found

Laptop fails to operate

Use CD

O

Ask organizer for PC & Use CD

X

Video projector fails

Use White Board

Use overhead projector

X

O

O OptimumX Rejected

QUESTIONS

12. seven management & planning tools

Business