What are the

New Seven Management & Planning

Tools?1. Affinity Diagrams2. Relations Diagrams3. Tree Diagrams4. Matrix Diagrams5. Arrow Diagrams6. Priority Matrix / Matrix Data Analysis7. Process Decision Program Charts

History of the New 7 Management

Tools 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

What are the

Basic 7 Q.C. Tools?

1. Flow Charts2. Run Charts3. Histograms4. Pareto Diagrams5. Cause and Effect

Diagrams6. Scatter Diagrams7. Control Charts

Relation Between New Seven Management Tools and Basic Seven

Q.C. ToolsFACTS

Data

Numerical Data Verbal Data

Organize

The Seven New Tools

Information

The Basic Seven Tools

Generate Ideas

Formulate plansAnalytical 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

5

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. '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 method2. Technique to generate ideas and linkup with other

ideas to form common ideas 3. 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 Specificatio

ns

Supplier Commitmen

t

Unsystematic Purchase Department

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 it3. 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?

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

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.”

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.

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

EXAMPLE: TREE DIAGRAMROGER’S TAKE–OUT

PIZZACATEGOR

YOBJECTIVE STRATEG

Y

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 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 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 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 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, JDraw the ARROW Diagram.

EXAMPLE: ARROW DIAGRAM

1

2

4

3

5 6

7

8

9

A

B

C

D

H

E

I

G

F

K

Dummy

J

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

11 88

22

66

44

33

77

a, 6

f, 15

b, 8

c, 5e, 9

d, 13

g, 17 h, 9

i, 6

j, 12

55

EXAMPLE: ARROW DIAGRAM (Cont…)

ES and EF Times

11 88

22

66

44

33

77

a, 6a, 6

f, 15f, 15

b, 8b, 8

c, 5c, 5

e, 9e, 9

d, 13d, 13

g, 17g, 17 h, 9h, 9

i, 6i, 6

j, 12j, 12

55

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

LS and LF Times

11 88

22

66

44

33

77

a, 6a, 6

f, 15f, 15

b, 8b, 8

c, 5c, 5

e, 9e, 9

d, 13d, 13

g, 17g, 17

h, 9h, 9

i, 6i, 6

j, 12j, 12

55

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

SLACK

11 88

22

66

44

33

77

a, 6a, 6

f, 15f, 15

b, 8b, 8

c, 5c, 5e, 9e, 9

d, 13d, 13

g, 17g, 17

h, 9h, 9

i, 6i, 6

j, 12j, 12

55

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

CRITICAL PATH

11 88

22

66

44

33

77

a, 6a, 6

f, 15f, 15

b, 8b, 8

c, 5c, 5

e, 9e, 9

d, 13d, 13

g, 17g, 17 h, 9h, 9

i, 6i, 6

j, 12j, 12

55

EXAMPLE: ARROW DIAGRAM (Cont…)

CPM: EXAMPLE

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

Network Information

Country Engineers Design DepartmentACTIVITY DESCRIPTION PROCEDING

ACTIVITYACTIVITY 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 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 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 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.

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. 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:

EXAMPLEGIVE GUEST LECTUREOBJECTIVE

Car to reach venue

STEPS

Use laptop Use video projector

Car breaks down

WHAT IF?

Hire a car

Take a public

transportO

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