UNIT III

The seven traditional tools of quality

New management tools Six-sigma: Concepts,
methodology,
Applications to manufacturing, service sector
including IT
Bench marking Reason to bench mark, Bench
marking process
FMEA Stages, Types




TOOLS PURPOSE
Flow chart (Stratification, Run chart)
Depicts essential steps of a process
Check sheet
Systematic data gathering
Histogram
Graphically displays frequency
distribution of numerical data
Pareto diagram
Identify causes that account for quality
loss
Cause and effect diagram
Identify and analyze causes of a given
problem
Scatter diagram
Relationship between two variables
Control chart
Identifying process variations and
signaling corrective actions.
Q-7 TOOLS
Plan
(P)
Do
(D)
Check
(C)
Act
(A)
Flow chart
Check sheet
Histogram
Pareto diagram
Cause and effect diagram
Scatter diagram
Control chart
Also known as Process flow chart, Flow diagram and Process
deployment flow.
Diagrammatic view of various steps in sequential order that
form an overall process in an organization.
Easily understandable.
Simple mapping tool.
Used to document and analyze the connection and sequence
of events in a process.
Creates an integrated understanding of the activities.
SYMBOL NAME MEANING
Terminator Start or end
Action
Process or Activity or
Task
Decision Decision
Arrow Direction of flow
Link Link to another page
ALSO KNOWN AS TALLY SHEET.
Systematic data gathering and registering to get a clear view of facts.
Used to keep track of how often something occurs.
Used to indicate the frequency of a certain occurrence.
TYPES OF CHECK SHEETS:
1. Process distribution check sheet.
Used to collect on process variability.
2. Defective item check sheet.
Specifies the variety of defects occurring.
3. Defect location check sheet.
Identify where defect occurs.
4. Defect factor check sheet.
Monitor the input parameters.
ADVANTAGES
Distinguishes between fact and opinion.
Gathers data about how often a problem occurs.
Gathers data about the type of problem that occurs.

Specialized type of bar chart showing distribution of variable
quantities.
Simple, graphical view of accumulated data.
Provides easiest way to evaluate the distribution of data.
ADVANTAGES:
Used to show clearly where the most frequently occurring values are
located and data is distributed.
Tool for determining maximum process results.
Enables the analysts to quickly visualize the features of a complete
data set.
Provides an easy-to-read picture of the location and variation in a data
set.
HISTOGRAM STATISTICS
The following are calculated for histogram:
Mean
Minimum
Maximum
Standard Deviation
Class Width
Number Of Classes
Skewness
Kurtosis
TYPES OF HISTOGRAM
Bell shaped
Double peaked
Plateau
Comb
Isolated peak
Edged peak
Skewed
Truncated
Also known as 80/20 rule and ABC analysis.
Wilfredo Pareto Italian Economist.
Diagnostic tool used for separating the vital few from the trivial many
causes that account for a dominant share of quality loss.
Based on Pareto Principle few (20%) of the defects accounts for most
(80%) of the effects.
ADVANTAGES
Used for focusing on critical issues by ranking them in order of
importance and frequency.
It prioritizes problems or causes to efficiently initiate problem-solving.
It analyzes problems or causes by different groupings of data.
Analyzes before and after impact of changes made in a process.
Used as risk assessment technique from activity level to system level.
Clearly prioritizes the magnitude of the problem.
STEPS INVOLVED:
1. Collect data.
2. Arrange data in descending order.
3. Calculate relative percentage of individual data.
4. Calculate cumulative percentage for individual data.
5. Draw a graph with scales on both the axis.
6. In the order of data, draw bars.
7. Using cumulative percentage of data, draw cumulative curve.
8. Identify the vital few.
Also known as fish bone diagram (because of its appearance) or
Ishikawa diagram (after the name of the person who developed it in
1943).
A graphical tabular chart to list and analyze the potential causes of a
given problem.
Diagram- Central stem- leading to effect
Multiple branches- possible causes.
Ishikawa-
Kaoru Ishikawa
Japan
Pioneered quality management process in the Kawasaki shipyards.
Causes in CE diagram- arranged in 4 major categories:
Recommended for Manufacturing- (4 Ms)
Man power
Methods
Materials
Machinery
Recommended for administration and services
Equipment
Policies
Procedures
People

USES:
To analyze C & E relationships.
To facilitate the search for solutions of related problems.
To standardize existing and proposed operations.
To educate and train personnel in decision-making and
corrective-action activities.
Used to explore the potential or real causes (inputs) that result
in a single effect (output).
To search for the root causes, identify areas where there may
be problems and compare the relative importance of different
causes.
ADVANTAGES:
Identifies the potential causes of a problem or an issue in
an orderly way.
Summarizes the major causes under 4 categories.
Has unlimited application in research, manufacturing,
office operations, services and so forth.
STEPS:
Place the problem statement in box on the right.
Draw the major causes (4 Ms).
Place the brainstormed ideas in appropriate major causes.
Branch off the main causes to sub/sub/sub causes.
Look for causes that appear repeatedly.
Determine critical causes.
Work out counter actions.

A graphical tool to depict the relationship between two variables:
o Horizontal axis- Cause (Independent variable)
o Vertical axis- Effect (Dependent variable)
Displays paired data as a cloud of points. Density and direction of
the cloud indicates how 2 variables influence each other.
Indicates the existence and strength of the relationship.
Used as follow-ups to CE analysis- to determine whether a stated
cause has impact on quality characteristics.

TYPES
Positive correlation
Negative correlation
No correlation
Negative correlation may exist
Correlation by stratification
Curvilinear relationship.

USES
Scatter diagram are mostly used to find the pattern of
relationship between 2 variables, like:
Cutting speed and tool life
Breakdown and equipment age
Training and errors
Speed and gas mileage
Production speed and the number of defective parts.
ADVANTAGES
Validating hunches about CE relationship between
types of variables.
Displays direction (+,-,.) and strength of relationship.
Used to understand, why particular variations occur and
how they can be controlled.

STEPS
Select variables which are related to each other.
Collect data.
Create scatter diagram X axis- cause and Y- axis-
effect.
Examine the shape of cloud of points.
Determine the type and strength of the mutual
relationships.

Invented by Walter.A.Shewart, most widely used tool in SPC.
A graph that displays data taken over time and the variations of this data.
Used to check whether the process is being controlled statistically.
Illustrates dynamic performance of the process.
Based on a series of random samples taken at regular intervals.
Chart- has 3 horizontal lines:
Centre- set at normal design value.
LCL- Lower Control Limit- (-3) S.D of sample mean.
UCL- Upper Control Limit- (+3) S.D of sample mean.
If sample lies between these lines- process is in control, sample lies outside-
out of control.

TYPES
Control charts for variables- for measurable data (time,
length, temperature, weight, pressure, etc)
Control charts for characteristics- for qualifiable data
(number of defects, typing errors in a report).
USES
To identify when the process has gone oyt of control-
thus signaling need for some action.
Used to show the sources of variations and eliminate
them in order to control the process.
Used to evaluate process stability and to decide when
to adjust the process.
Seven Management and Planning tools (MP tools).
Seven basic tools- for quantitative problems,
Seven MP tools- for qualitative problems.
Uses subjective information and are used for the following:
o Process improvement,
o Cost reduction,
o Policy deployment,
o New product development.
Used to find the root cause of the problem by focusing on the process.
Develops critical thinking.

Helpful for managers to
Organize large amounts of non-quantitative data,
Create hypothesis,
Clarify inter- relationships,
Establish priorities.
Very useful for top and middle level managements for strategic
planning, goal setting and problem solving.
Procedure adopted as follows:
Describe the problem clearly,
Keep asking why till root cause is obtained.

AFFINITY DIAGRAM
RELATIONSHIP DIAGRAM
TREE DIAGRAM
MATRIX DIAGRAM
MATRIX DATA ANALYSIS
DECISION TREE (PDPC)
ARROW DIAGRAM (PERT)

S.NO MANAGEMENT TOOLS PURPOSE
1 AFFINITY DIAGRAM
For synthesizing, classifying, organising
indefinite ideas
2 RELATIONSHIP DIAGRAM
For isolating cause and effect
relationship
3 TREE DIAGRAM
For deploying general concepts into
details
4 MATRIX DIAGRAM
For correlating in logical form, in order
to evaluate, select, and decide
5 MATRIX DATA ANALYSIS For quantifying relationship
6 DECISION TREE (PDPC) For identifying alternatives
7 ARROW DIAGRAM For planning
Also known as KJ Diagram
Tool to collect a large amount of verbal expressions and organize
them in groups according to natural relationships between
individual items.
Special kind of brain storming tool.

USES
It is used
To provide a visual representation of large amount of ideas.
To determine logical priorities.
To extract large amount of useful information from few or scattered
data, or from unrelated ideas.
To understand and organize unclear problems.
To create new concepts.
ADVANTAGES
A participative exercise which generates commitment.
Identifies common view in thinking within a group.
Provides valuable ideas which can be refined by using other
tools.
Excellent for preliminary planning purposes, particularly in
addressing poorly defined areas where the problem is to
identify the problems.
STEPS
Define problem.
Generate ideas.
Record ideas on cards.
Display cards in random order.
Arrange cards in groups.
Create headers for groupings.
Draw the affinity diagram.
Also known as Inter-relationship diagraph.
Tool to find causes to a problem.
Same logic as CE diagram.
Not only clarifies relationship between cause and effect, but also
between various causes.
A graphical representation of all factors in a complicated problem,
system or situation.
A creative process, which allows for multi-directional thinking rather
than linear thinking.
The header cards from affinity diagram are used as the starting point for
relations diagram.
It reveals the following:
Relationship between causes,
Multiple routes from cause to effect,
Relative importance of the causes.
USES
To generate a visual representation of the relations between
an effect and its causes as well as inter-relationship between
different causes of the problem.
Can be used to
Identify key problem from a list of important problems.
Identify the root cause of existing problem.
Identify key factors needed to make a decision.
STEPS
Identify effect in centre.
Conduct brainstorming to identify immediate cause-
around the effect.
Connect with an arrow mark with a head, towards effect.
Most outgoing arrows- indicate root cause
Most incoming arrows- indicate key outcome or result.
Also known as systematic diagram.
Adaptation of the Fundamental Analysis System Technique (FAST) in
value engineering.
It systematically breaks down a topic into its component elements, and
shows the logical and sequential links between these elements.
Outlines the spectrum of paths and tasks that must be carried out to achieve
a goal.
Serves the purpose of developing the essential means to achieve an
objective or goal.
Used when the causes that influence the problem are known, but a plan and
method for resolving the problem has not been developed.
According to Mizuno, this method searches for the most appropriate arid
effective means of accomplishing objectives.
TYPES

Constituent-component-analysis diagram breaks down the main
subject into basic elements and depicts their relationships to the
objectives and the means of obtaining those objectives.
The plan-development diagram systematically shows the means and
procedures necessary to successfully implement a given plan.

STEPS
State the problem to be studied.
Brainstorm all possible causes (for why-why diagram) OR
methods of addressing the problem (for how-how diagram).
Identify and list the primary, secondary and tertiary means
from brainstorm.
Arrange and re-arrange the elements in proper order in
boxes.
USES
Helps to breakdown complex issues into sub issues.
Useful in planning a new program, a new service or a new product.
Enables developing a sequence of steps that depend on each other
and from the solution to a problem.
Used when missing a key step in implementing the solution to a
problem can lead to serious consequences.
Purpose is to explore the ways and means to achieve the objective,
develop a list of alternative means and to present them in visual
understandable form.
Helps to develop a systematic, step-by-step strategy to achieve an
objective
Also known as multi-dimensional matrices or quality table.
Tool used to systematically organize information that must be
compared on a variety of characteristics in order to make a
comparison, selection or choice.
Depicts the relation between 2, 3 or 4 sets of factors in the
form of table or a matrix.
Starting point in building a house of quality.
Clarifies problematic spots through multi-dimensional
thinking.
Identifies corresponding elements involved in a problem
situation or event.
L-shaped 2 groups AB or AA
T-shaped 3 groups BAC but not BC
Y-shaped 3 groups ABCA
C-shaped 3 groups All three simultaneously (3D)
X-shaped 4 groups
ABCDA but not AC or
BD
Roof-shaped 1 group AA when also AB in L or T
TYPES
STEPS
Determine the factors.
Select the type of matrix to be used.
Select the relationship symbol to be used.
Complete the proper matrix using appropriate factors and
symbols.
Examine the matrix and draw the appropriate conclusion.
USES
Used to show relations between individual items in 2 sets of factors. Eg.
Used to understand the relations between
o Customer satisfaction and product characteristics.
o Complaints and product groups.
o Complaints and geographical regions.
o A products performance in the market and promotional inputs into it.
QFD:
o Quality Function Deployment.
o A popular methodology based on matrix-style representation.
o Column- how- different things that can be done to achieve the
objectives. (how to accomplish).
o Row- what- customer requirements or objectives (what to
accomplish)
Prioritization matrix.
Similar to matrix diagram but numerical data is used
instead of symbols indicating the existence and strength of
relationship.
Only tool among New 7 MP tools which uses numerical
data and produces numerical results.
It is a multivariate analysis technique called Principal
Component Analysis.
Used when matrix chart does not give detailed information
sufficiently.
STEPS
Decide the 2 factors whose relations are to be analyzed.
Check the number of individual items in 2 factors.
Prepare a matrix to accommodate all items of 2 factors.
Enter numerical data in the matrix.
Analyze the final results.
USES

Analyzes production process where factors are complexly
intertwined.
Analyzes causes of non-conformities that involve a large volume
of data.
Grasps the desired quality level indicated by the results of the
market survey.
Classifies sensory characteristics systematically.
Accomplishes complex quality evaluations.
Analyzes curvilinear data.
Process Decision Programme Chart (PDPC).
An adaptation of the Operations Research methods.
A planning tool to outline every conceivable and likely
occurrence in any planning.
A very useful and powerful method to overcome an
unfamiliar problem or a goal
CHARACTERISTICS
A simple graphical tool used to mitigate risk in virtually any
undertaking.
Helps to determine which processes to use to obtain desired results by
evaluating the progress of events and the variety of conceivable
outcomes.
Establishes an implementation plan for mgmt by objectives.
Establishes an implementation plan for technology development themes.
STEPS
Prepare a normal flow chart of process with all expected events as steps in
the chart.
Identify various possibilities of the process not going as per the plan due to
any abnormal occurrences.
Write these occurrences on flow chart through branching at appropriate
locations
Identify the ways and means to counts the effects due to abnormal
occurrences.
Write these counter measures connecting the corresponding abnormal
occurrences on one side and the process objectives on the other.
USES
Useful when one wants to plan all possible chains of events
that might occur during a project.
Used in new product development, building and equipment,
and data processing programs.
Used in decision making when the task is new, complex and
unique.
Also known as activity network or CPM critical path method.
Graphical description of the sequential steps that must be
completed before a project can be completed.
Best known arrow diagram PERT (Program evaluation and
review technique).
A planning tool that determines the critical path of a process or a
project.
It is a technique of planning, scheduling and control of activities
of a project.
TYPES
Activity on arrow (AOA) diagram widely used.
Activity on node (AON) diagram.

STEPS
Identify and list each activity to be done in the project.
Determine the sequence of activities.
Construct a network reflecting the precedence relationships.
Write the activity time under the arrow leading from it.
USES
Helps understand and manage a complex project (task).
Enables understanding and managing a project in which multiple
activities take place and must be managed simultaneously.
Enables explaining the project status to others.
Helps implement plans for new product development and also to
develop product- improvement and respective follow-up activities.
Helps establish daily plans for experimental trials and also for increase
in production and their follow-up activities.
Helps synchronize the preceding plans for QC activities.
Helps develop plans for a facility move and for monitoring follow-up.
Helps analyze a manufacturing process and draw up plans for improved
efficiency.
SCOPE OF SIX SIGMA
Manufacturing
Service Industries
Hospitals
Insurance
Call Centre
Process of determining who is the very best, who sets the
standard and what the standard is.
It is a systematic method by which organizations can measure
themselves against the best industry practices.
It is finding the secrets of any given function or process so that a
company can learn from the information and improve on it.
It helps the company close the gap with the best-in-class
performer without having to reinvent the wheel.
DEFINITION
The process of identifying, understanding and adapting outstanding
practices and processes from organizations anywhere in the world to
an organization to improve its performance. APQC (American
Productivity and Quality Centre).
The continuous process of measuring products, services and
practices against the toughest competitors or those companies
recognized as industry leaders. -David Kearns.
The systematic comparison of elements of performance of an
organization against those of other organizations, usually with the
aim of mutual improvement. Thore.
A STEP-BY-STEP APPROACH TO BENCHMARKING
TYPES OF BENCHMARKING
Based on the OBJECT to be benchmarked.
Product benchmarking.
Performance benchmarking.
Process benchmarking.
Strategic benchmarking.
Generic benchmarking.
Based on ORGANISATION against whom one is benchmarking.
Internal benchmarking.
External benchmarking.
Industry benchmarking.
Competitive benchmarking.
Best-in-class benchmarking.
Relationship benchmarking.
FAILURE MODE EFFECT ANALYSIS
A Failure Mode is:
The way in which the component, subassembly, product, input,
or process could fail to perform its intended function
Failure modes may be the result of upstream operations or
may cause downstream operations to fail
Things that could go wrong
Why?
Methodology that facilitates process improvement
Identifies and eliminates concerns early in the development of a
process or design
Improve internal and external customer satisfaction
Focuses on prevention
FMEA may be a customer requirement (likely contractual)
FMEA may be required by an applicable
Quality Management System Standard (possibly ISO)
BENEFITS
Allows us to identify areas of our process that most impact
our customers
Helps us identify how our process is most likely to fail
Points to process failures that are most difficult to detect
Manufacturing: A manager is responsible for moving a
manufacturing operation to a new facility. He/she wants to be
sure the move goes as smoothly as possible and that there are
no surprises.
Design: A design engineer wants to think of all the possible
ways a product being designed could fail so that robustness
can be built into the product.
Software: A software engineer wants to think of possible
problems a software product could fail when scaled up to
large databases. This is a core issue for the Internet.

FMEA PROCEDURE
1. For each process input (start with high value inputs), determine the
ways in which the input can go wrong (failure mode)
2. For each failure mode, determine effects
Select a severity level for each effect
3. Identify potential causes of each failure mode
Select an occurrence level for each cause
4. List current controls for each cause
Select a detection level for each cause
FMEA PROCEDURE
5. Calculate the Risk Priority Number (RPN)
6. Develop recommended actions, assign responsible persons,
and take actions
Give priority to high RPNs
MUST look at severities rated a 10
7. Assign the predicted severity, occurrence, and detection levels
and compare RPNs

RISK PRIORITY NUMBER (RPN)
RPN is the product of the severity, occurrence, and detection
scores.
Severity Occurrence Detection RPN
X X
=
PROCESS TO CHANGE OIL IN A CAR
Drive car
on lift
Fill with
new oil
Take Car
off lift
Process
Complete
3000 miles
driven
Drain Oil
Replace
Filter
Process or
Product Name
Change Oil in Car Prepared by: Leon Page _1____ of __1____
Person
Responsible
Leon Mechanic Date (Orig) __27 Sep 2007___ Revised __________
Process
Step
Key
Process
Input
Potential
Failure
Mode
Potential
Failure
Effect
S
e
v
Potential
Causes
O
c
c
Current
Controls
D
e
t
R
P
N
Actions
Recommended
S
e
v
O
c
c
D
e
t
R
P
N
Fill
with
new
oil
New
Oil
Mech
anic
Wrong
type of
oil
Engine
wear
No oil
added
Engine
Failure
Sev - Severity of the failure (what impact will it have on our process?)
Occ How likely is the event to occur (probability of occurrence)
Det How likely can the event be detected in time to do something about it
RPN Risk Priority Number (multiply Sev, Occ, and Det)
Process or Product
Name:
Hotel Service at Special Olympics Prepared by: Page _____ of ______
Person Responsible: Joe Quality Date (Orig) ___________ Revised __________
Process
Step
Key
Process
Input
Potential
Failure
Mode
Potential
Failure
Effect
S
e
v
Potential
Causes
O
c
c
Current
Controls
D
e
t
R
P
N
Actions
Recommended
S
e
v
O
c
c
D
e
t
R
P
N
Register
guest
Service
Desk
Cannot
Register
in time
Complaints 5 Lack of
language
and
communicat
ion skills,
support of
volunteers
not
sufficient
4 No plan on
training
content;
training and
volunteer
support
sufficient
3 72
Provide
Guest
Services
Guest
Support
Lack of
barrier-
free
facility
Inconvenien
ce and
injury
10 Cannot
provide
barrier-free
facility
3 Providing
barrier-free
facility
7 210
Provide
Meals
Food
Service
Food
goes bad
Disease or
injury
10 Past shelf
life
6 No control of
raw material
8 240
Provide
Medical
Service
Medical
Service
Service
not in
time
Illness
changes for
worse
10 No 24 Hour
service
6 12 hour
service
3 180
FMEA identifies risk in our processes
Impact/Severity
Probability of Occurrence
Detection
Helps identify what can go wrong and what we should
fix
Can be used in multiple stages of process improvement

SUMMARY
FMEA identifies risk in our processes
Impact/Severity
Probability of Occurrence
Detection
Helps identify what can go wrong and what we should fix
Can be used in multiple stages of process improvement