The Seven Management Tools - Total Quality Management

2. BACKGROUND
 Formal research on the seven new quality tools began in 1972 as part of
the Japanese Society of QC technique development meetings.
 The original seven tools of quality (scatter diagram, flow charts, histogram, etc.)
were adequate for data collection and analysis. However, the new tools allow for
more identification, planning, and coordination in finding a problem
solution.
 The seven new tools, as written by Japanese authors Mizuno Shigeru, Asaka
Tetsuichi and Ozeki Kazuo.
 Later, these tools were modified and adapted to American industry.

3. DMAIC PROCESS
DMAIC is a data-driven quality strategy used to improve processes. It is an integral part of a Six
Sigma initiative, but in general can be implemented as a standalone quality improvement
procedure or as part of other process improvement initiatives such as lean.

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MANAGEMENT TOOLS

7. AFFINITY DIAGRAM
 What is an Affinity Diagram?
An Affinity Diagram is a tool that gathers large amounts of language data (ideas,
opinions, issues) and organizes them into groupings based on their natural
relationships . The Affinity process is often used to group ideas generated by
Brainstorming.
 Why should teams use the Affinity process?
 The Affinity process is a good way to get people to work on a creative level to
address difficult issues. It may be used in situations that are unknown or
unexplored by a team, or in circumstances that seem confusing or disorganized,
such as when people with diverse experiences form a new team, or when members
have incomplete knowledge of the area of analysis.
 Sift through large volumes of data.
 Encourage new patterns of thinking.

8.  How to create an Affinity Diagram?
Step 1 - Generate and Display your ideas based on the problem
Step 2 - Sort ideas into homogeneous groups

9. Step 3 - Create header cards
Step 4 - Put the groupings into the order of the process

10. TREE DIAGRAM
 What is Tree Diagram?
 A Tree Diagram is a chart that begins with one central item and then branches
into more and keeps branching until the line of inquiry begun with the central
item is exhausted. The tree diagram with its branching steps, motivates to move
from the general to the specific in a systematic way.
 Also called: systematic diagram, tree analysis, analytical tree, hierarchy diagram
 When to use a Tree Diagram?
 When an issue is known or being addressed in broad generalities and you must
move to specific details, such as developing logical steps to achieve an objective.
 When developing actions to carry out a solution or other plan.
 When analyzing processes in detail.
 When probing for the root cause of a problem.
 When evaluating implementation issues for several potential solutions.
 As a communication tool, to explain details to others.

11.  How to create Tree Diagram?
 Step 1: Develop a statement of the goal, project,
plan, problem or whatever is being studied.
 Step 2: Ask a question that will lead you to the
next level of detail.
 Step 3: Do a “necessary and sufficient” check.
 Step 4: Each of the new idea statements now
becomes the subject: a goal, objective or
problem statement. For each one, ask the
question again to uncover the next level of
detail. Create another tier of statements and
show the relationships to the previous tier of
ideas with arrows.
 Step 5: Continue to turn each new idea into a
subject statement and ask the question. Do not
stop until you reach fundamental elements:
specific actions that can be carried out, root
causes.
 Step 6: Do a “necessary and sufficient” check of
the entire diagram.

12. MATRIX DIAGRAM
 What is the Matrix Diagram?
A Matrix Diagram (MD) is a tool that allows a team to identify the presence and
strengths of relationships between two or more lists of items. It provides a compact
way of representing many-to-many relationships of varying strengths.
 When to use Matrix Diagram?
Its is use to expose interactions and dependencies between things that help us to
understand complex causal relationships

14. INTERRELATIONSHIP DIAGRAM
 What is an Interrelationship Diagram?
 An interrelationship diagram (ID) shows how different issues are related to one
another. It helps identify which issues are causing problems and which are an
outcome of other actions.
 An interrelationship diagram consists of a set of boxes, one representing each
issue to be considered. It is organized in a radial pattern on the page. Connecting
lines between the boxes indicates their relationship. Arrows show direct
relationships and distinguish causes from effects.
 Interrelationship diagrams can be extremely useful when trying to sort out
possible causes of a specific problem. Although they do not identify detailed
reasons for the problem, they do allow one to analyse broader issues as causes and
effects of one another.

15.  How to Create an Interrelationship Diagram?
 Identify the problem: Decide what problem to solve by analyzing its various factors.
Place it in a box at the top of the paper.
 Identify issues: Brainstorm to produce any key issues, ideas, reasons, causes, etc., for
the problem. Place each in a rectangle on the page.
 Connect the issues: Choose any item to start with and compare it to any other.
Decide if the two are related to each other in any way. If they are, identify which is a
cause and which is an effect. Use an arrow pointing from cause to effect to show the
relationship.
 Analyze: Any item with a large number of outgoing arrows is a key cause of the
problem. Any item with many arrows pointing to it is a main outcome.
 Solve the issue: Discuss a way to solve the issue by focusing on the main cause.

16. The inference is that Potential causes for Low Customer Satisfaction:
• Unskilled Employees(4 outgoing arrows)
• HR Management(3 outgoing arrows)

17. PRIORITIZATION MATRIX
 What is Prioritization Matrix?
This tool is used to prioritize items and describe them in terms of weighted criteria. It
uses a combination of tree and matrix diagramming techniques to do a pair-wise
evaluation of items and to narrow down options to the most desired or most effective.

18. Problem:
To identify the most important factors effecting motivation in a team.
Pay and work overload are the highest scoring motivational problems, were
selected for carrying forward for further investigation.

19. PROCESS DECISION PROGRAM CHART (PDPC)
 What is Process decision program chart (PDPC) ?
 A useful way of planning to break down tasks into a hierarchy, using a Tree Diagram.
The PDPC extends the tree diagram a couple of levels to identify risks and
countermeasures for the bottom level tasks.
 Different shaped boxes are used to highlight risks and identify possible
countermeasures.
 The PDPC is similar to the Failure Modes and Effects Analysis (FMEA).
 When to Use PDPC
 Before implementing a plan, especially when the plan is large and complex.
 When the plan must be completed on schedule.
 When the price of failure is high.

20.  EXAMPLE:
A medical group is planning to improve the care of patients with chronic illnesses
such as diabetes and asthma through a new chronic illness management program
(CIMP). They have defined four main elements and, for each of these elements, key
components the information is laid out in the process decision program chart below.

21. ACTIVITY NETWORK DIAGRAM
 What is an Activity Network Diagram?
 Activity Network Diagram (AND) is also called an Arrow Diagram, and it is used for identifying
time sequences of events which are pivotal to objectives.
 Activity Network Diagrams are also very useful when a project has multiple activities which
need simultaneous management.
 An Activity Network Diagram helps to find out the most efficient sequence of events needed to
complete any project.
 When it is used?
It is used to create a realistic project schedule by graphically showing :
 The total amount of time needed to complete the project
 The sequence in which tasks must be carried out
 Which tasks can be carried out at the same time
 Which are the critical tasks that you need to keep an eye on

24.  Example:
Suppose the team is tasked with improving the process of building a house. The team
lists the major steps involved – everything from the excavation step through the
landscaping step.
The critical path is a line that goes through all of the nodes that have the
longest expected completion times.

25. Questions