Total quality management Unit-2 Seven new management tools Presented by N.vigneshwari

Today’s topic New seven management tools

Seven New management tools Affinity diagram Inter-relationship diagram Tree diagram Matrix diagram Matrix data analysis diagram Process decision programme chart Arrow diagram

1.Affinity diagram Affinity diagram sometimes referred to as a KJ diagram, after the initials of the person who created this technique, Jiro Kawakita is a special kind of tool. Affinity diagram is used to gather large amounts of ideas, opinions or issues and group those items that group together. So, it is a group-decision making techinque designed to sort a large number of ideas, process variables, concepts and opinions into naturally related groups. Purpose: The purpose of an affinity diagram is to provide a visual representation of grouping of a large number of ideas or factors or requirements into logical sets of related items to help one organise action-plans in a systematic manner. Due to visual representation, one can easily understand the problem and its various solutions and impact, which, in turn, help implement the solutions with a clear understanding. So, it is a method of bringing together different view points and sorting them out constructively to increase significantly the chances of gaining insight into problems where opinions and views vary and there are no easy answers

Application: It is a creative as well as logical process that enables the team-members to participate in an issue’s solution rather than simply restating the problem. It is best done with six to twelve members. Due to its simplicity, it can be combined with other tools and put into a wide variety of applications. For example, it can be combined with cause-and-effect diagram or relations-diagram for a problem or it can be combined with tree-diagram to categorise possible solutions. It can be used to group the customer requirements with the product characteristics, which, in turn, helps to design a new product to satisfy their requirements even more to make them delighted with the use of the product. It can be used to categories the action-plans and allocate the responsibility in a rational manner.

How do we use it? Identify the problem and phrase it without biases Brainstorm ideas and opinions, individually and record on the cards Sort cards into groups and discard those with no affinity Label the groups and organise the cards under them to form chart Analyse the results and plan action-points

2.Inter – relationship diagram Interrelationship diagraph is a tool for finding causes to a problem. It not only clarifies the relationship between cause and effect but also between the various causes. Interrelationship diagraph is a graphical representation of all the factors in a complicated problem. Purpose: The purpose of the interrelationship diagraph is to generate a visual representation of the relations between an effect and its causes as well as the interrelationship between the different causes of the problem. In a fairly tangled situation, it is a powerful means of forcing a group to map out the interactions between factors and, usually, helps bring out the most important issues into focus.

Application: The most common use is in problem-solving to identify multiple interrelated causes. The output of the tool is a list of root causes for the problem with some indication of their relative importance. The output has to be considered as only an indication of the relative importance of the causes. So, this tool can be used under the following circumstances: Identifying key or driver issues from a list of important issues Identifying the most important problems for solving when the number of problems exceeds the resources available to solve all of them Identifying the root cause of existing problems Identifying key factors needed to make a decision when there is insufficient information available to make a data-driven decision.

How do we use it? Identify and decide the ‘effect’ of the problem. Write it in the centre of a board and enclose it in a dark bordered rectangle Conduct brainstorming to identify the immediate causes of effect. Note down these causes in rectangle around the centre dark rectangle Connect these immediate causes to the effect by connecting the rectangles of the causes to that of the effect with a line. The line has an arrow pointing towards the effect. The element of the rectangle with the most outgoing arrows will indicate the root causes. Those one with the most incoming arrows will be key outcomes or results

3.Tree diagram Tree diagram is a tool used to generate the ideas for developing a list of alternative solutions to a problem. A team, when faced with a problem, first uses a cause-and-effect diagram or interrelationship diagraph to determine the causes. After identifying the major causes for the problem, it collects data to confirm the causes that contribute most towards the problem. This information helps the team generate ideas for solving the problem. Tree diagram is a tool, which helps the team to do so, effectively. As we know, for inner-relationship diagraph, one starts with the problem and develops a list of alternatives causes for the problem. For creating tree diagram, one has to start with the solution or the desired outcomes and develop a list of means to achieve the set objectives.

Purpose: The purpose of the tree diagram is to explore the ways and means to achieve an objective, develop a list of alternate means to reach the desired situation in a sequential order and to present them in visual understandable form. In this way, tree diagram helps to generate a logical set of proposals at a number of levels, which turn a general problem into a set of possible actions. Application: Tree diagram is very useful when there are a number of options in response to a particular problem and one need to see what they all imply and involve. It helps one to develop a systematic, step-by-step, strategy to achieve an objective. It is also useful in monitoring the implementation of solutions by taking care of accomplishment of means at different levels.

How do we construct it? State the problem to be studied Brainstorm all possible causes or Methods of addressing the problem Identify and list the primary, secondary and teritary means from brainstorm Arrange and rearrange the elements in proper order in boxes

4. Matrix diagram A matrix diagram is a tool that is used to systematically organise information that must be compared on a variety of characteristics in order to make a comparison, selection or choice. It is a tool which depicts the relations between two sets of factors in the form of a table or a matrix. Matrix diagram is, sometimes, referred to as a ‘quality table, and is the starting point in building a ‘house of quality’. Purpose: The purpose of a matrix diagram is to explore the existence and the extent of relations between individual items in two sets of factors or features or characteristics and express them in a symbolic form that is easy to understand. The tool is most frequently used to understand the relations between customer expectations, as expressed by the customers and product characteristics, as designed and tested by manufacturer. So, this is a method of selecting important issues from a number of perspectives as a multidimensional approach to analysis.

Application: Matrix diagram, being a simple table showing relations between individual items in two sets of factors, can be put in wide variety of uses. The symbolic representation of the relationship makes the diagram much easier to understand as compared to a table with a lot of figures. Matrix diagram can be used to solve problems by arranging data in such a way that the relations between relevant factors are brought into sharp focus. It can be used to understand relations between customer satisfaction and product characteristics, between complaints and product groups, and between complaints and geographical regions, between a product’s performance in the market and promotional inputs into it and so on. It can often be used in production, to show, how a range of factors bears on a range of problems. Matrix diagrams also have a place in quality improvement and process design. These can be used to make comparisons between competing alternatives that involve multiple characteristics. However, matrix diagram is used as a working tool, not as an absolute measure.

How do we use it? First decide on the two sets of factors to be compared Place the main factors (say, features) vertically on the left hand side of the matrix and the dependent factors (say, characteristics) horizontally on top of the matrix In the main body of the matrix, place appropriate symbols at the intersecting square boxes denoting the relationship between the two factors Now score relationships and select most important relationship for analysis

5.Matrix data analysis Matrix data analysis is the only tool among the ‘new seven’ which uses numerical data and produces numerical results. It is, somewhat, similar to a matrix diagram with a difference that numerical data is used instead of symbols indicating the existence and strength of relationship. With numerical data replacing the symbols, matrix data analysis is now really a table and some people prefer to call the tool as matrix data analysis method. Purpose: The purpose of matrix data analysis diagram is to present numerical data about two sets of factors in a matrix form and analyze it to get numerical output. The factors, most often, are products and product characteristics. The purpose then is to analyse the data on several characteristics for a number of products and use the information to arrive at optimum values for the charactersitics for a new product or to decide the strong points of a product and use the information, say, for designing copy for the production of the product.

Application: The most common application of a matrix data analysis diagram is to decide the desired product characteristics of a new product, based on the analysis of product characteristics of similar products in the market and the intended positioning of the new product. For instance, the characteristics of a toilet soap for customers with normal skin would be, somewhere in between those for a soap for dry skin and soap for oily skin. By collecting data on the product characteristics of related products and placing them in a matrix data analysis diagram, one can decide the desired characteristics of the proposed product depending on the target group of customers for the new product. Analysis of data can also be used to identify the strongest characteristics of an existing product to decide its promotional inputs and to study the causes of customer complaints. It can also be used to determine process parameters to achieve the desired product characteristics. The tool can be very useful in compiling data obtained on the analysis of competitive products with a view to develop a product better than that of competitors or to devise a marketing strategy for the product based on its strength.

How do we construct it? Decide the two factors whose relations are to be analysed Check the number of individual items in the two factors Prepare a matrix to accommodate all items of the two factors Enter numerical data in the matrix Analyse the final results

6. Process decision programme chart(PDPC) Process decision programme chart is to map out conceivable and likely events and contingencies that can occur in any implementation plan along with appropriate and reasonable counter-measures. It is a planning tool. It forces proactive thinking on what can go wrong with one’s plan and what would one do to overcome the effect of such adverse occurrences. The tools helps to anticipate undesirable occurrences and enables one to prepare with plants to neutralise their effect. It encourages negative thinking with a view to plan for achieving one’s goals inspite of obstacles in one’s path. Instead of thinking positively like, ‘do not worry; everything will be fine’ and being surprised and shocked when something goes wrong, the tool encourages thinking of the worst than can happen and prepares one for it.

The failure of individuals to distinguish between ‘highly improbable’ and ‘impossible events’ surprises and shocks people who are not prepared for these type of outcomes. So, the time and efforts spent in finding out the possibilities of adverse occurrences is an investment, similar to an insurance premium. With increasing life expectancy, the probability of a healthy young man dying in his forties or fifties has been considerably reduced. Still, one invests life insurance policies to provide for one’s family in the unlikely event of an untimely death due to accident or sudden illness. Purpose: The purpose of process decision programme chart (PDPC) is to prepare for abnormal occurrences with low probability which may, otherwise, be overlooked and to present the occurrences as well as the necessary counter-measures to guard against such occurrences in the form of visual chart. The tool forces one to think of the possible obstacles in the smooth progress of a process or a project and then to find ways and means to surmount those obstacles to ensure successful and timely completion of the process or the project. Thus; this tool helps one to prepare a contingency plan to achieve the objective, it adverse events occur.

How do we construct it? First, prepare a ‘normal’ flow chart of the process with all expected events as steps in the chart Identify the various possibilities of the process not going as per the plan due to any abnormal occurrences Write these occurrences on the flow chart through branching at appropriate locations Now identify the ways and means to counter the effect due to abnormal occurrences Writes these counter-measures in rectangles connecting the corresponding abnormal occurrence on one side and the process objective on the other.

7.Arrow diagram An arrow diagram is a simplified kind of critical path analysis, especially developed for scheduling activities-particularly assembly operations. It is another term for a PERT or CPM chart. It is a graphic description of the sequential steps that must be completed before a project can be completed. It is essentially a planning tool that determines the critical path of a project or a process. Arrow diagram is a flow chart of the process or the project with few differences. In an arrow diagram, ‘event nodes’ are stages which denote the completion of a step or a number of steps. The line connecting the event-nodes represent the step in the process. The time at each individual step is used to calculate the time by which it must be accomplished, at latest, to complete the process in time. It can also be used for assembly-operations.

Purpose: The main purpose of the arrow diagram is to show the paths to complete a project, find the shortest time possible for the project and graphically display simultaneous activities. By the use of it, becomes easy to follow map of every activity in the cycle and schedule activities to meet the target cycle times. Applications: Arrow diagram is used under the following conditions: 1.Understanding and managing a complex project or task which is of major importance to the organisation and the consequences of late completion are severe 2.Understanding and managing a project in which multiple activities must take place and be managed, simultaneously, in a networked manner. 3.Scheduling, execution, expediting and explaining the project status to others.

How do we construct it? 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 arrow leading from it

References Total quality management – S.Rajaram M.Sivakumar Total quality management – V.Jayakumar

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