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12. seven management & planning tools

New 7 Management tools

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12. seven management & planning tools

  1. 1. 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–PU 1 TQ T SEVEN MANAGEMENT & PLANNING TOOLS
  2. 2. 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
  3. 3. 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
  4. 4. 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
  5. 5. 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)
  7. 7. 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. 'Customers are unhappy with delivery delays'). “  Affinity Diagrams are most commonly built using the 'KJ' method (named after Kawakita Jiro, its originator), which aims to stimulate creative, 'right-brained' thought, rather than logical 'left-brained' thought, by banning discussion during the building of the diagram. 1. Modification of traditional Brainstorming method 2. Technique to generate ideas and linkup with other ideas to form common ideas 3. Facilitates breakthrough thinking and stimulate fresh ideas 4. Effective tool for cutting through confusion and bringing a problem clearly into view 5. Widely used in the sorting stages 6. Develops consensus and team sprit among the members/ teams
  8. 8. HOW TO MAKE AFFINITY DIAGRAM? 1. Problem is written on the center of the board 2. Each team/ member generates ideas to find the causes of the problem 3. Each team/ member is encouraged to give more and more ideas 4. Ideas are written on a small piece of paper (normally 3” x 5”) 5. Each paper is placed on the board around the problem 6. Team study and categories the similar ideas by consensus 7. Ideas are reduced to a workable number of ideas and a border line is drawn around these ideas
  9. 9. AFFINITY DIAGRAM: EXAMPLE Ambiguous Material PROBLEM DEFECTIVE 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
  10. 10. 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
  11. 11. RELATION / RELATIONSHIP DIAGRAM The Relation Diagrams are used for finding appropriate solution strategies by clarifying the causes of the problem using why, why technique. Also known as Interrelationship Diagraph 1. Technique for clarifying the complex issues by considering the numerous possible causes 2. Useful tools for finding appropriate strategies by relating different causes of a problem 3. Enables to identify the root causes of the problem
  12. 12. HOW TO MAKE RELATION DIAGRAM? Activity normally carried out after Affinity Diagram 1. Place the problem in the center 2. Write primary causes of the problem round it 3. Determine the secondary, tertiary, 4th & 5th level causes by repeating why, why about 5-times 4. Review the whole diagram and systematically explore the relationships among these causes 5. Many causes at 4th & 5th stage may have the common reasons 6. Combine such reasons to reach the root cause of the problem
  13. 13. 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 Cause 5th level Cause 6th level Cause Tertiary Cause Secondary Cause
  14. 14. 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 no incoming arrow, is called a root cause. There are three root cause. But, the most important root cause is the one with maximum number of outgoing arrows. This is also called Driver. Measure of Success: “A cause, which has maximum number of incoming arrows, is called an outcome. It will also be a good measure of success.”
  15. 15. TREE DIAGRAM  Also known as Systematic Diagram  Tree Diagrams are drawn to develop a succession of strategies/ means for achieving an objective (target, goal or result) systematically and logically.  Constructing this diagram yields specific guidelines for solving a problem.  Tree Diagrams are also classified as strategy-development or component development diagrams.
  16. 16. HOW TO MAKE TREE DIAGRAM? Write the objective on the left side  Think different strategies to achieve these objectives in the form of primary branches  Again think different means to accomplish these strategies in the form of secondary branches  In this way keep on stratifying till you find easy solutions of a bigger problem
  17. 17. EXAMPLE: TREE DIAGRAM ROGER’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
  18. 18. MATRIX DIAGRAM Matrix Diagrams enable the data based on ideas to be employed effectively for examining the relationships. They clarify the relationship among the different elements based on verbal data (attribute data) like the scatter diagrams show the correlation between different parameters based on numerical data (variable data) 1. Two dimensional array of columns and rows whose intersections are examined to determine the relationship 2. Used to systematically analyze the correlation between two sets of attribute data 3. Sets of data are compared in rows and columns 4. Where rows and columns meet relationship code like strong weak or no relation can be inserted 5. Explores relationship among the attributes of rows and columns
  19. 19. 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
  20. 20. 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 the numerous operations required to implement these strategies.  Arrow diagrams are useful for planning this kind of action. They show the sequence and relationships among different activities effectively. They also indicate how altering one operation will effect the other and which activities are critical to the time schedule and which have some slack or spare 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
  21. 21. EXAMPLE: ARROW DIAGRAM Consider 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.
  22. 22. EXAMPLE: ARROW DIAGRAM 1 2 4 3 5 6 7 8 9 A B C D H E I G F K J
  23. 23. 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
  24. 24. CRITICAL PATH METHOD: EXAMPLE 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 EXAMPLE: ARROW DIAGRAM (Cont…)
  25. 25. 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 EXAMPLE: ARROW DIAGRAM (Cont…) CPM: EXAMPLE
  26. 26. 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 EXAMPLE: ARROW DIAGRAM (Cont…) CPM: EXAMPLE
  27. 27. 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 EXAMPLE: ARROW DIAGRAM (Cont…) CPM: EXAMPLE
  28. 28. 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 EXAMPLE: ARROW DIAGRAM (Cont…) CPM: EXAMPLE
  29. 29. Critical Path: 1  3  7  8 Activities on the Critical Path: b d  j Total Project Time: 8+13+12 = 33 EXAMPLE: ARROW DIAGRAM (Cont…) CPM: EXAMPLE
  30. 30. 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
  31. 31. PRIORITY MATRIX  It is just a kind of matrix in which same attributes/ strategies/ tasks are written both horizontally and vertically. Then instead of finding relationship among two different attributes, the importance of horizontally placed attributes is compared with the vertically placed attribute.  In this way the importance of each task when compared to all other tasks become visible.  This type of matrix is drawn when there are many tasks but there are not enough resources. So instead of just thinking which tasks are more important, the Priority Matrix is drawn. Priority matrix is used when 1. There are more tasks than available resources 2. Numerous possibilities/ multiple choices exists 3. Selection criteria is complicated 4. Prioritizing between several viable options
  32. 32. EXAMPLE: PRIORITY MATRIX There can be a number of requirements when you are going to buy a new car but just for the sake of easy understanding of how to make a Priority Matrix only four attributes of a car are chosen for prioritization.  These are superior sound system, fully automatic windows, fuel economy and four wheel drive.
  33. 33. 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 uncertainties 2. Contingency Plans for what could go wrong 3. Resemble FMEA 4. List the possible problems 5. Decide measures to be taken to solve those problems 6. Very useful when starting new procedure or project
  34. 34. PROCESS DECISION PROGRAM CHART: EXAMPLE GIVE GUEST LECTUREOBJECTIVE Car to reach venue STEPS Use laptop Use 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  Optimum X  Rejected
  35. 35. QUESTIONS