New Seven Management & Planning Tools?

1. 2. 3. 4. 5. 6. 7. Affinity Diagrams Relations Diagrams Tree Diagrams Matrix Diagrams Arrow Diagrams Priority Matrix / Matrix Data Analysis Process Decision Program Charts

What are the

New 7 Management Tools

History of the

Committee of J.U.S.E. - 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

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

What are the

Relation Between New Seven Management Tools and Basic Seven Q.C. Tools
FACTS Data Numerical Data
Define problem after collecting numerical data

Verbal Data
Define problem before collecting numerical data

The Basic Seven Tools The Seven New Tools

Analytical approach

Organize
Information

Generate Ideas Formulate plans

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

SEVEN MANAGEMENT & PLANNING TOOLS TYPICAL FLOW

AFFINITY DIAGRAM Creative INTERRELATIONSHIP DIGRAPH Logical

TREE DIAGRAM / SYSTEM FLOW

PRIORITIZATION MATRICES
Unknown PROCESS DECISION PROGRAM CHART

MATRIX DIAGRAM known

ACTIVITY NETWORK DIAGRAM

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

5

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

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

DEFECTIVE INCOMING MATERIALS

Ambiguous Material
Supplier Provided Poor Quality of Materials

AFFINITY DIAGRAM: EXAMPLE PROBLEM

Poor Performing Equipment

Lack of Skills of Employees (Supplier)

Policy not Clear

No Contract Review Not Systematic

Lack of Skills of Employees (Purchasing Dept.)

AFFINITY DIAGRAM: EXAMPLE (Cont)

PROBLEM

DEFECTIVE INCOMING MATERIALS

Material Specifications
Ambiguous Material No Contract Review

Supplier Commitment
Lack of Skills of Employees (Supplier) Supplier provided Poor Quality of Materials
Poor Performing Equipment

Unsystematic Purchase Department

Lack of Skills of Employees (Purchasing Dept.) Policy not Clear

Not Systematic

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

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

COMPLETING A RELATION DIAGRAM?

Tertiary Cause

Secondary

Primary Cause

Tertiary Cause

Cause

Primary Cause
Secondary Cause Why doesnt X happen?

Tertiary Cause

Secondary
Cause

Primary Cause

Primary Cause
Secondary
6th level Cause

Tertiary Cause 4th level Cause

Cause Secondary Cause

Tertiary Cause 4th level Cause 5th level Cause

Lack of Skills of employees

EXAMPLE: RELATION Policy not DIAGRAM Clear

No contract review of specifications

Unsystematic purchase department Lack of Commitment of Supplier

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.

Ambiguous Specifications Poor quality materials used by supplier Poor quality of equipment Unskilled employees of suppliers

Defective incoming Material

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.

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 strategydevelopment or component development diagrams.

HOW TO MAKE TREE DIAGRAM?

Write the objective on the left side Think different strategies to achieve objectives in the form of primary branches these

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

EXAMPLE: TREE DIAGRAM

ROGERS TAKEOUT PIZZA
CATEGORY OBJECTIVE
Extra Value

STRATEGY
Extra Meat More Cheese Fresh Vegetables

PRODUCT

Delivered Hot 30 Min. Max Wait Friendly Drivers

Heated Compartments in Delivery Vans Optimum Routing Batch Delivery Employee Training Driver Rotation

SERVICE

Courteous order takers

Employee Training

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

MATRIX DIAGRAM

EXAMPLE: MATRIX DIAGRAM

Partial Matrix Program Chart for Rogers Take-Out Pizza Improved Employee Training Improved Kitchen Process Improved Delivery Process Improved Controls Action Objective 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 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

EXAMPLE: ARROW DIAGRAM

Consider the following data: Activity A B C D E F G H I J Description
Select administrative and medical staff Select site and do site survey Select equipment Prepare final construction plans and layout Bring utilities to the site Interview applicants and fill positions in nursing, support staff, maintenance, & security Purchase and take delivery of equipment Construct the hospital Develop an information system Install the equipment

Immediate Predecessor(s) A B B A C D A E, G, H

Train nurses and support staff

F, I, J

Draw the ARROW Diagram.

EXAMPLE: ARROW DIAGRAM

F 2 A C 3 1 5 B D H E 6 I 7 G J 8

K 9

QUESTION: ARROW DIAGRAM

Develop the ARROW DIAGRAM
Activity A
B C D E F G H I

Description
Procurement of parts for sub assembly 1
Procurement of parts for sub assembly 2 Procurement of parts for sub assembly 3 Building sub assembly 1 Building sub assembly 2 Building sub assembly 4 Building sub assembly 3 Building the final product Final Test

Immediate Predecessor(s) None

None None A B D,E B,C F,G H

EXAMPLE: ARROW DIAGRAM (Cont)

CRITICAL PATH METHOD: EXAMPLE
f, 15
2 5

a, 6
1

g, 17
6

h, 9
i, 6
8

b, 8
3

d, 13
7

j, 12

c, 5

e, 9
4

EXAMPLE: ARROW DIAGRAM (Cont)

ES and EF Times
2

CPM: EXAMPLE
f, 15 6 21 g, 17 6 23
6 5

a, 6 0 6
1

i, 6 23 29

h, 9 21 30
8

b, 8 0 8 c, 5 0 5
4
3

d, 13 8 21
7

j, 12 21 33 Projects EF = 33

e, 9
5 14

EXAMPLE: ARROW DIAGRAM (Cont)

LS and LF Times
2

a, 6 0 6 3 9 b, 8 0 8 0 8 c, 5 0 5 7 12

f, 15 6 21 9 24 g, 17 6 23 6 10 27 d, 13 8 21 8 21 e, 9 5 14 12 21

CPM: EXAMPLE
5

i, 6 23 29 27 33

h, 9 21 30 24 33
8

j, 12
7

21 33 21 33

EXAMPLE: ARROW DIAGRAM (Cont)

SLACK
a, 6 3 0 6 3 9 b, 8 0 0 8 0 8 c, 5 7 0 5 7 12 f, 15 3 6 21 9 24 2 g, 17 6 4 6 23 10 27
3

CPM: EXAMPLE
5

i, 6 4 23 29 27 33

h, 9 3 21 30 24 33
8

d, 13 8 21 0 8 21 e, 9 7 5 14 12 21

j, 12 0 21 33 21 33

EXAMPLE: ARROW DIAGRAM (Cont)

CRITICAL PATH
2

CPM: EXAMPLE
f, 15 g, 17
6 5

a, 6

h, 9 i, 6
8

b, 8
3

d, 13
7

j, 12

c, 5
e, 9
4

EXAMPLE: ARROW DIAGRAM (Cont)

CPM: EXAMPLE

Critical Path:
1378

Activities on the Critical Path: b d j

Total Project Time: 8+13+12 = 33

QUESTION: CPM: QUESTION ARROW DIAGRAM

Network Information
Country Engineers Design Department
ACTIVITY
A B C D E F

DESCRIPTION
Application Approval Construction Plans Traffic Study Service Availability Check Staff Report Commission Approval

PROCEDING ACTIVITY
None A A A B,C B,C,D

ACTIVITY TIME (Duration)

5 15 10 5 15 10

G
H

Wait for Construction

Occupancy

F
E,G

170
35

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. 2. 3. 4. There are more tasks than available resources Numerous possibilities/ multiple choices exists Selection criteria is complicated Prioritizing between several viable options

EXAMPLE: PRIORITY MATRIXa There can be a number of requirements when you are going to buy

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.

Fully automatic windows and four wheel drive = 0.4 + 30.0 = 30.4 Fuel economy and superior sound system = 5.2 + 20.2 = 25.4

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. 2. 3. 4. 5. 6. Tool for anticipating uncertainties Contingency Plans for what could go wrong Resemble FMEA List the possible problems Decide measures to be taken to solve those problems Very useful when starting new procedure or project

PROCESS DECISION PROGRAM CHART: EXAMPLE

OBJECTIVE

GIVE GUEST LECTURE

O Optimum X Rejected

STEPS

Car to reach venue

Use laptop

Use video projector

Video projector fails Use White Board
X Use overhead projector O

WHAT IF?

Car breaks down

File not found Use CD

O

Laptop fails to operate

Hire a car
O

Take a public transport X

Ask organizer for PC & Use CD

X