1. ©2004 Prentice-Hall S. Thomas Foster, Jr. Boise State University PowerPoint prepared by prepared by Dave Magee University of Kentucky Lexington Community College Chapter 10 The Tools of Quality

2. Slide 10-2 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Chapter Overview Chapter Overview Improving the System The Plan-Do-Check-Act-Cycle Ishikawa’s Basic Tools of Quality The Seven New Tools for Improvement

3. Slide 10-3 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Improving the System Slide 1 of 2 Improving the System Slide 1 of 2 Objective of the System –To be successful, an organization must balance the needs of its different functional areas around a coherent business vision and strategy. –The objective of the system is to satisfy the customer. Purpose of the Chapter –In this chapter we introduce the basic seven tools of quality, and the new seven tools.

4. Slide 10-4 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Improving the System Slide 2 of 2 Improving the System Slide 2 of 2 Quality System Model Change Continual improvement Renewal Planning Customer Technology Procedures Legal requirements R & D People Plant & equipment

5. Slide 10-5 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Plan-Do-Check-Act Cycle Slide 1 of 2 Plan phase –involves identifying problems to be solved, gathering data, doing data analysis, and developing recommendations. Do phase –involves implementing the solution on a trial basis.

6. Slide 10-6 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Plan-Do-Check-Act Cycle Slide 2 of 2 Check –consists of a post-implementation study to ascertain whether or not the implementation resulted in the expected outcome. Act –involves either adjusting the original implementation because of problems resulting from the changed or making the changes permanent if the implementation was effecting in making improvements.

7. Slide 10-7 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Logical Order for B7 Tools Flow Chart Check Sheet Histograms Scatter Diagrams Control Charts Cause & Effect Pareto Analysis Big Picture Data Collection Data Analysis Problem Identification Priortization Figure 10.2

8. Slide 10-8 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Ishikawa’s Basic Tools of Quality (B7) HistogramHistogram Pareto Charts Cause & Effect Diagrams Check Sheets Scatter Diagrams FlowchartsFlowcharts Control Charts

9. Slide 10-9 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 1 of 7 Flowcharts –A flowchart is a picture of a process. –The first step in many process improvement projects is to flowchart the process as it exists. This useful step also determines the parameters for process improvement. The concept is that we must know the process before we can improve it.

10. Slide 10-10 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 2 of 7 Basic Flowcharting Symbols Figure 10.3

11. Slide 10-11 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 3 of 7 Simple Rules for Flowcharting –Chart the process from the beginning, with all arcs in the flowchart leaving and entering a symbol. The arcs represent the progression from one step to the next. –Develop a general process flowchart and then fill it out by adding more detail about each of the elements. –Step through the process by interviewing those who perform it – as they do their work. –Determine which steps add value and which don’t in an effort to simplify the work. –Before simplifying work, determine whether the work really needs to be done in the first place.

12. Slide 10-12 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 4 of 7 Example of a Flowchart –The flowcharts on the next two slides demonstrate the evaluation of a simple process used in the planning department of the City of Boise, Idaho, to issue permits allowing applicants to take possession of newly built homes. Figure 10.4 shows the process as it existed. –In Figure 10.5 the process was simplified as the front desk was given more authority and training to process the forms without assigning them for analyst review. It was found that the analyst review did not add value for the organization or the customer. Therefore, it was eliminated.

13. Slide 10-13 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 5 of 7 Process Flowcharting: Home Occupation Process - Current Figure 10.4

14. Slide 10-14 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 6 of 7 Process Flowcharting: Home Occupation Process - Proposed Figure 10.5

15. Slide 10-15 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Flowcharts Slide 7 of 7 Steps in Flowcharting Include –Settle on a standard set of flowcharting symbols to be used. –Clearly communicate the purpose of the flowcharting to all the individuals involved in the flowcharting exercise. –Observe the work being performed by shadowing the workers performing the work. –Develop a flowchart of the process. –Review the flowchart with employees to make needed changes and adjustments to the flowchart.

16. Slide 10-16 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Check Sheets Slide 1 of 2 Check Sheets –Are data gathering tools that can be used in forming histograms; they can be either tabular or schematic. Setting Up a Check Sheet –Identify common defects occurring in the process. –Draw a table with common defects in the left column and time period across the tops of the columns to track the defects. –The user of the check sheet then places check marks on the sheet whenever the defect is encountered.

17. Slide 10-17 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Check Sheets Slide 2 of 2 Copier Problem Check Sheet Figure 10.10

18. Slide 10-18 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Histograms Slide 1 of 3 Histograms –A representation of data in a bar chart format. Rules for Developing a Histogram –The width of the histogram bars must be consistent (i.e., class widths are the same where each bar contains a single class) –The classes must be mutually exclusive and all inclusive.

19. Slide 10-19 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Histograms Slide 2 of 3 Number of Classes (Categories) in a Histogram –A good rule of thumb for the number of classes is given by the model 2 k  n where n is the number of raw data values and k is the number of classes. Solving for k, we obtain k is greater or equal to log n/log 2 Using this formula we find: Number of ObservationsNumber of Classes 9 to 164 17 to 325 33 to 646 65 to 1287 129 to 2568

20. Slide 10-20 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Histograms Slide 3 of 3 Histogram of the Number of Maintenance Occurrences and Service Hours for Four Production Lines Figure 10.11

21. Slide 10-21 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Scatter Diagrams Slide 1 of 3 Scatter Diagram –The scatter diagram or scatter plot is used to examine the relationships between variables. –These relationships are sometimes used to identify indicator variables in organizations.

22. Slide 10-22 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Scatter Diagrams Slide 2 of 3 Steps in Setting Up a Scatter Plot –Determine your X (independent) and Y (dependent) variables. –Gather process data relating to the variables identified in step 1. –Plot the data on a two-dimensional Cartesian plane. –Observe the plotted data to see whether there is a relationship between the variables.

23. Slide 10-23 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Scatter Diagrams Slide 3 of 3 Prevention in Costs and Conformance Figure 10.13

24. Slide 10-24 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Control Charts –Control charts are used to determine whether a process will produce a product or service with consistent measurable properties. –Control charts are discussed in detail in Chapters 12 and 13.

25. Slide 10-25 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Cause and Effect Diagrams Slide 1 of 4 Cause and Effect (or Fishbone or Ishikawa) Diagram –A diagram designed to help workers focus on the causes of a problem rather than the symptoms. –The diagram looks like the skeleton of a fish, with the problem being the head of the fish, major causes being the “ribs” of the fish and subcauses forming smaller “bones” off the ribs.

26. Slide 10-26 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Cause and Effect Diagrams Slide 2 of 4 Steps for Creating a Cause & Effect Diagram aState the problem clearly in the head of the fish. bDraw the backbone and ribs. Ask the participants in the brainstorming session to identify major causes of the problem labeled in the head of the diagram. If participants have trouble identifying major problem categories, it may be helpful to use materials, machines, people, and methods as possible bones.

27. Slide 10-27 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Cause and Effect Diagrams Slide 3 of 4 Steps for Creating a Cause & Effect Diagram (continued) cContinue to fill out the fishbone diagram, asking “why?” about each problem or cause of a problem until the fish is filled out. Usually it takes no more than five levels of questioning to get to root causes – hence, the “five whys.” dView the diagram and identify core causes. eSet goals to address the core causes.

28. Slide 10-28 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Cause and Effect Diagrams Slide 4 of 4 Cause-and Effect Diagram: Wobbling Saw Blade Example Figure 10.16

29. Slide 10-29 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Pareto Charts Slide 1 of 3 Pareto Charts –Used to identify and prioritize problems to be solved. –Histograms aided by the 80/20 rule adapted by Joseph Juran from Vilfredo Pareto. –The 80/20 rule states that roughly 80% of the problems are caused by roughly 20% of the causes. –This means that there are a vital few causes that create most of the problems.

30. Slide 10-30 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Pareto Charts Slide 2 of 3 Rules for Constructing Pareto Charts –Information must be selected based on types or classifications of defects that occur as a result of a process. –Data must be collected and classified into categories. –A histogram or frequency chart is constructed showing the number of occurrences. Steps Used in Pareto Analysis: –Gathering categorical data relating to quality problems. –Drawing a histogram of the data. –Focusing on the tallest bars in the histogram first when solving the problem.

31. Slide 10-31 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Pareto Charts Slide 3 of 3 Pareto Analysis Figure 10.18

32. Slide 10-32 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Seven New Tools for Improvement Slide 1 of 3 New Seven Tools –In addition to the basic seven tools of quality is another set of tools that focus on group processes and decision making. –The new seven tools (N7) were developed as a result of a research effort by a committee of the Japanese Society for QC Technique Development.

33. Slide 10-33 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Seven New Tools for Improvement Slide 2 of 3 Affinity Diagram The Interrelationshiip Digraph Tree Diagrams Prioritization Grid Process Decision Program Chart Activity Network Diagram Matrix Diagram

34. Slide 10-34 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Seven New Tools for Improvement Slide 3 of 3 Seven Management and Planning Tools Typical Flow Affinity diagram Interrelationship digraph Tree diagram/ systems flow Prioritization matrices Matrix diagram PDPC Activity network diagram CreativeLogical UnknownKnown Figure 10.21

35. Slide 10-35 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Affinity Diagram Slide 1 of 5 The Affinity Diagram –A tool that is used to help groups identify all of the issues associated with a particular problem and converge on a set number of themes or ideas that can be addressed later. –An affinity diagram creates a hierarchy of ideas on a large surface as shown in the next slide.

36. Slide 10-36 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Affinity Diagram Slide 2 of 5 Affinity Diagram Figure 10.22

37. Slide 10-37 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Affinity Diagram Slide 3 of 6 Steps Used in Establishing an Affinity Diagram 1Identify the problem to be tested. Create a clear, concise statement of the issues that is understood by everyone. 2Give the team members a supply of note cards and a pen. Ask them to write down issues that relate to the problem. There should only be one idea per card. Ask them to use at least four or five words to clearly explain their thinking. 3Allow only about 10 minutes for this writing activity. 4Place the written cards on a flat surface. 5Lay out the finished cards so that all participants can see and have access to all the cards.

38. Slide 10-38 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Affinity Diagram Slide 4 of 5 Steps Used in Establishing an Affinity Diagram (continued) 6Let everyone on the team work to move the cards into groups with a similar theme. Do this work silently because it does not help to discuss your thinking. Work and move quickly. 7If you disagree with someone else’s placement of a note card, say nothing but move it.

39. Slide 10-39 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Affinity Diagram Slide 5 of 5 Steps Used in Establishing an Affinity Diagram (continued) 8You reach consensus when all of the cards are in groups and the team members have stopped moving the cards. Once consensus has been reached concerning placement of the cards, you can create header cards. 9Draw a finished affinity diagram and provide a working copy for all participants.

40. Slide 10-40 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Interrelationship Digraph Slide 1 of 4 Interrelationship Digraph –A tool designed to help identify and understand the causal relationships between the different issues that surfaced while completing the Affinity Diagram. –This tool also helps to identify the most important issues to be focused on in pursuing the solution to a problem.

41. Slide 10-41 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Interrelationship Digraph Slide 2 of 4 Interrelationship Digraph Figure 10.24

42. Slide 10-42 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Interrelationship Digraph Slide 3 of 4 Steps for Completing an Interrelationship Digraph 1Construct an affinity diagram to identify the issues relating to the problem. After you have done this, place the cards with related issues in columns with gaps between the cards. It is helpful to use sticky notes on a large piece of flipchart paper. 2Create the digraph by examining the cards one by one asking, “What other issues on this digraph are caused or influenced by this issue?” As team members identify issues that are related, draw a one-way arrow from the first issue (the cause) to the second issue (the one influenced by the cause). Do this until all the issues have been discussed.

43. Slide 10-43 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition The Interrelationship Digraph Slide 4 of 4 Steps for Completing an Interrelationship Digraph (continued) 3After reviewing the arrows and making needed revisions, count the number of arrows pointing to each note and write the numbers on the notes. 4Identify the cards with the most arrows as the “key factors.” There should not be more than 5 to 10 key factors. Boxes with the most outgoing arrows tend to be root causes. Boxes with incoming arrows tend to be performance indicators. 5Draw a double box around the key factors and brainstorm ways to address these issues.

44. Slide 10-44 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Tree Diagrams Slide 1 of 3 Tree Diagrams –A tool used to identify the steps needed to address a particular problem. –Very similar to a work breakdown structure used in planning projects.

45. Slide 10-45 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Tree Diagrams Slide 2 of 3 Tree Diagram Figure 10.26

46. Slide 10-46 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Tree Diagrams Slide 3 of 3 Steps Used to Complete a Tree Diagram 1Assemble the header cards from the affinity diagram. From these cards, choose the header card that represents the most important issue. 2Once the goal statement has been determined, ask, “What are the steps required to resolve or achieve this major objective or goal?” 3One the major tasks have been identified, move to the next level under each task and ask for the second level tasks, “What are the steps required to resolve or achieve this objective or goal?” 4Continue doing this for successive levels until you have exhausted your ideas for steps.

47. Slide 10-47 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Prioritization Grid Slide 1 of 4 Prioritization Grid –A prioritization grid is used to make decisions based on multiple criteria. For example, in choosing a technology, we might have a variety of options. Also, the decision criteria vary as to how to choose possible desired outcomes. –When there are multiple alternatives and multiple criteria, a prioritization matrix is a good method to inform your decision making without resorting to more sophisticated analysis.

48. Slide 10-48 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Prioritization Grid Slide 2 of 4 Prioritization Grid Figure 10.27

49. Slide 10-49 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Prioritization Grid Slide 3 of 4 Steps Required to Make a Prioritization Grid 1Determine your goal, your alternatives, and the criteria by which a decision is to be made. 2Place the selection criteria in order from most important to least important. 3Apply a percentage weight to each of the criteria for each option. Apply a weight to each of the criteria such that all the weights add up to 1 (for example, A =.40, B =.30, C =.25, and D =.05). 4Sum the individual rating for each criterion to come to an overall ranking. Divide by the number of individuals to find an average ranking.

50. Slide 10-50 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Prioritization Grid Slide 4 of 4 Steps Required to Make a Prioritization Grid 5Rank order each alternative with respect to the criteria. Average the rankings and apply a completed ranking. 6Multiply the criteria weight by it associated criterion rank for each criterion in the matrix. Notice that in this case, a ranking of 4 is best and 1 is worst. The result in each cell of the matrix is called an importance score. 7Sum the importance scores for each alternative. 8Rank order the alternatives according to importance.

51. Slide 10-51 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Matrix Diagram Slide 1 of 3 Matrix Diagram –Brainstorming tool that can be used in a group to show the relationships between ideas or issues. –Similar in concept to quality function deployment in its use of symbols, its layout, and its application. –Simple to use. –Can be used in 2, 3 or 4 dimensions. –Can be used to show responsibility among different people.

52. Slide 10-52 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Matrix Diagram Slide 2 of 3 Matrix Diagram Figure 10.28

53. Slide 10-53 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Matrix Diagram Slide 3 of 3 Steps for Completing a Matrix Diagram 1Determine the number of issues or dimensions to be used in the matrix. 2Choose the appropriate matrix. 3Place the appropriate symbols in the matrix.

54. Slide 10-54 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Process Decision Program Chart Slide 1 of 4 Process Decision Program Chart –A tool to help brainstorm possible contingencies or problems associated with the implementation of some program or improvement. Example of a Process Decision Program Chart –An example of a process decision control chart in tree form is shown on the next slide.

55. Slide 10-55 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Process Decision Program Chart Slide 2 of 4 Process Decision Program Chart Figure 10.30

56. Slide 10-56 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Process Decision Program Chart Slide 3 of 4 Steps in Completing a Process Decision Program Chart 1In developing the tree diagram, place the first-level boxes in sequential order. (These are the boxes in the first column in the example.) 2Moving to the second level, list implementation details at a fairly high level. Try to be all-inclusive at a macrolevel. 3At the third level, ask the question, “What unexpected things could happen in this implementation?” or “What could go awry at this stage?”

57. Slide 10-57 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Process Decision Program Chart Slide 4 of 4 Steps in Completing a Process Decision Program Chart (continued) 4At the fourth level, brainstorm possible countermeasures to the problems identified at the third level. 5Evaluate the counter measures for feasibility and mark those that are feasible with an O and those that are not feasible with an X.

58. Slide 10-58 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Activity Network Diagram Slide 1 of 2 Activity Network Diagram –An activity network diagram is also known as a PERT (program evaluation and review technique) diagram or critical path (longest path in time from beginning to end) diagram and is used in controlling projects. –These are discussed in detail in Chapter 11. Example of an PERT Diagram –The figure on the next slide shows a PERT diagram with nodes and times. The nodes are circles and the times are given in days.

59. Slide 10-59 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Activity Network Diagram Slide 2 of 2 Activity Network Diagram Figure 10.31

60. Slide 10-60 © 2004 Prentice-Hall Managing Quality: An Integrative Approach; 2nd Edition Summary Summary Improving the System The Plan-Do-Check-Act-Cycle Ishikawa’s Basic Tools of Quality The Seven New Tools for Improvement