1. PowerPoint presentation to accompany Besterfield Quality Control, 8e
Chapter 12- Management and Planning Tools
PowerPoint presentation to accompany
Besterfield
Quality Control, 8e 1

2. Some Problems (Challenges) !
Undergraduate Unemployment
Improve customer experience in a restaurant
topics for research/project
expending/relocation business entity
improve customer experience driving a car
improving health care system
What are the consequences of children watching violent television shows and playing violent video games?
ISO Implementation in an organzation

3. The Basic Seven Q.C. Tools?
Flow Charts
Run Charts
Histograms
Pareto Diagrams
Flow Charts - pictorial representation showing all of the steps of a process
Run Charts - used to analyze processes according to time or order
Histograms - bar graphs with frequency intervals
Pareto Diagrams - 80/20 histograms for identifying and prioritizing problems
Cause and Effect Diagrams - fishbone diagrams
Scatter Diagrams - Identifies the possible relationship between the changes observed in two different sets of variables.
Control Charts - used to determine whether a process will produce a product or service with consistent measurable properties
Cause and Effect Diagrams
Scatter Diagrams
Control Charts

4. Relation Between New Q.C. Tools and Basic Seven Tools
FACTS
Data
Numerical Data
Verbal Data
Define problem after
collecting numerical data
Define problem before
collecting numerical data
This shows how the N7 and the B7 complement each other in solving quality-related problems.
Facts -> to Data!
Do people provide data in numerical form or verbally? (How do you?)
Information - This is the most IMPORTANT GOAL!!! Without the info, there will be no KNOWLEDGE gained which is required for achieving our goal! (Nayatini 4)
The Basic Tools
The New Tools
Analytical approach
Generate Ideas
Formulate plans
Organize
Information

5. Benefits of Incorporating Q.C. Tools
Enhanced Capabilities
Organize verbal data
Generate ideas
Improve planning
The N7 are used for promoting Total Quality. The goals for TQM are: Ensuring company fulfills obligations, Securing profits, Developing people (Nayatini 9)
The N7 enhance the capabilities of every employee. It has a direct impact on developing the workforce. At the same time, the effectiveness and efficiency is greatly enhanced which results directly on the bottom-line.
Eliminate errors and omissions
Explain problems intelligibly
Secure full cooperation
Persuade powerfully

6. Benefits of Incorporating Q.C. Tools
Assess situations from various angles
Clarify the desired situation
Prioritize tasks effectively
The N7 will lead to Organizational Reform system-wide.
These keys lead to a greater set of skills. The most important being, the ability to be proactive in anticipating future problems. (Nayatini 10)
Proceed systematically
Anticipate future events
Change proactively
Get things right the first time

7. Benefits of Incorporating Q.C. Tools
Five Objectives of Organizational Reform which will establish a Culture that:
Identifies problems
Gives importance to planning
The Organizational Reform establishes a system wide Culture that should result in stimulating people to think for themselves.
This culture should result in a workforce that is constantly “Thinking TQM” and being “Creative with TQM”. (Nayatini 10)
Stresses the importance of the process
Prioritizes tasks
Encourages everyone to think systematically

8. Benefits of Incorporating Q.C. Tools
Unstructured Problem [must be put into solvable form]
The Seven New Tools
Problem is mapped
Problem becomes
obvious to all
Thoughts are
easily organized
Plans are
easily laid
Problem becomes
obvious to all
The N7 are techniques for untangling the intricate relationships among the different variables of a problem. Using the N7 makes it easy to clarify the situation, establish a plan, and get to the root cause of the the problem. It also makes it easier to explain the situation and get “buy-in” with their cooperation. (Nayatini 6)
People understand
problem
Problem can be
clearly articulated
Nothing is
omitted
Nub of problem
is identified
Cooperation is
obtained
Things go well
Countermeasures
are on target
Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)
Problem is in solvable form

9. Why, Why
Key to finding the root cause of a problem by focusing on the process rather than on people.
Describes the problem in specific terms and then ask “why”.
This tool is very beneficial in developing critical thinking.
It is frequently a quick method of solving problems.

10. Management and Planning Tools
These tools are particularly useful in structuring unstructured ideas, making strategic plans, organizing and controlling large and complex projects.
These tools are very effective for teams and, in some cases, for individuals.

11. Management and Planning Tools
Subjective information.
Applications of these tools has been proven useful in process improvement, cost reduction, policy deployment, and new-product development.

12. 85% of poor quality is a result of poor work processes, not of staff doing a bad job
Processes often “go wrong” at the point of the “handoff”
Attend to improving the overall process, not just one part—some of the most complex processes are the result of creating a “work around”

13. Nominal Group Technique Affinity Diagram Interrelationship Diagram
Outline
Force Field Analysis
Nominal Group Technique
Affinity Diagram
Interrelationship Diagram

14. Prioritization Matrices Process Decision Program Chart
Outline
Tree Diagram
Matrix Diagram
Prioritization Matrices
Process Decision Program Chart
Activity Network Diagram

15. Learning Objectives Affinity Diagram Interrelationship Diagram
When you complete this chapter, you should:
Be able to describe the why, why, forced field, and nominal group techniques.
Know how to develop and utilize the following tools:
Affinity Diagram
Interrelationship Diagram
Tree Diagram
Matrix Diagram 15

16. Learning Objectives-cont’d.
When you complete this chapter, you should:
Know how to develop and utilize the following tools cont’d.:
Process Decision Program Chart
Activity Network Diagram
Prioritization Matrices 16

17. Forced Field Analysis
Identifies the forces and factors that may influence the problem or goal.
Helps an organization to better understand promoting or driving and restraining or inhibiting forces so that the positives can be reinforced and the negatives reduced or eliminated.

18. Forced Field Analysis Steps: Define the objective.
Determine criteria for evaluating the effectiveness of the improvement action.
Brainstorm the forces that promote and inhibit achieving the goal.

19. Prioritize the forces from greatest to least.
Forced Field Analysis
Steps cont’d.:
Prioritize the forces from greatest to least.
Take action to strengthen the promoting forces and weaken the inhibiting forces.

20. Determine the positives and negatives of a situation.
Forced Field Analysis
Benefits:
Determine the positives and negatives of a situation.
Encourage people to agree and prioritize the competing forces.
Identify the root causes.

21. Forced Field Analysis Objective: Stop Smoking Promoting Forces
Inhibiting Forces
Poor Health
Habit
Smelly Clothing
Addiction
Poor Example
Taste
Cost
Stress
Impact on Others
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22. What is a force-field analysis?
Force-field analysis is a problem-solving tool that is used to identify the reasons (“forces”) that support two positions to a question and the strength of each force. For example, force-field analysis could be sued by a team to answer the question, “Should ABC Inc. establish an office in Singapore?”
Yes No
3. Following the rules of brainstorming, have the team provide as many reasons as possible for each of the responses. As with any brainstorming session, no answer should be ignored and no critique is permitted during the brainstorming session. After this session, the team’s force field might look like the following chart:
Adapted from Practicing Organization Development

23. Yes No High demand Too far from Japan Stable economy
Should ABC establish an office in Singapore?
Yes No
High demand
Too far from Japan
Stable economy
Lack of competition
College graduates available to work for ABC
Business plan shows high potential profit
No existing customers
Travel costs too great
Too much investment
No employees are culturally aware
Japan can cover
Dictatorship
The facilitator will then do a quick scan of the group and count the participants’ responses. This number is then written on the chart. See sample chart on the following page.

24. Once the team can provide no new information to the brainstorming session, the items provided should be reviewed for clarification, duplication, and so on. Items should be reworded, if necessary, for clarification.
The next step is to identify how strong a force each item is. There are many ways to do this. One simple way is to treat each item with a five-point Likert scale. The facilitator may handle this process in the following manner:
“if you believe that the statement I read is a very strong argument for establishing an office in Singapore, hold up five fingers. If you believe that is a very weak argument for the position, hold up only one finger. How strong an argument do you think ‘High demand’ is?”

25. Exhibit 6-5: Conducting a Force-Field Analysis (continued)
Yes No
5 High demand
3 Too far from Japan
4 Stable economy
2 Lack of competition
2 College graduates available to work for ABC
5 Business plan shows high potential profit
1 No existing customers
2 Travel costs too great
5 Too much investment
2 No employees are culturally aware
5 Japan can cover
3 Dictatorship
6. Items that are perceived to be low in interest should be eliminated from the chart. In the sample chart above, items with a 1 or 2 would be removed. See sample chart below.
Should ABC establish an office in Singapore?
Yes No
5 High demand
3 Too far from Japan
4 Stable economy
5 Business plan shows high potential profit
5 Too much investment
5 Japan can cover
3 Dictatorship
7. Given the arguments that remain, participants would try to decide the question.

26. Nominal Group Technique
Provides the issues/ideas input from everyone on the team and for effective decisions.

27. Nominal Group Technique
Steps:
Everyone writes on a piece of paper the situation they think is most important.
The papers are collected, and all situations are listed on a flip chart.
Rank the situations (using another paper). Give numerical values 1…
Points for each problem are totaled and the item with the highest number of points is considered to be the most important.

28. Stages Idea Sharing Preparation Introduction Idea Generation
Discussion
Voting/Ranking

29. Example of NGT
The faculty at X-University is concerned that the students are not getting internships and jobs. A team is created involving faculty, students, and recruiters. The goal is to identify the cause of this problem. After this NGT process, the faculty will create an action plan based on the outcome.
This is an example of how to use NGT. It is a fake scenario, but one when a team might use NGT to problem solve. Once they identify the source of the problem, they could run another round of NGT to brainstorm solutions. Note, however, that this practice is to find the SOURCE of the problem, not the solution. (This is one of the disadvantages of the tool: the scope is limited. You can’t approach multiple ideas at once, which can eliminate synergies.)

30. Example of NGT
Statement of Problem: Why aren’t students getting internships and job offers?
The facilitator would explain this purpose to the team, and explain the NGT process.

31. Individual idea generation:
The job market is slow.
Poor interview skills.
They’re not networking.
Not enough recruiters come.
Their resumes are weak.
Students are unwilling to relocate.
Students are unprepared.
No internships prevents them from getting jobs later on.
The career fair is not productive.
Everyone wants to stay in-state.
Each person on the team will create a list of ideas.

32. Idea Sharing:
The facilitator records the ideas.

33. Discussion:
Is the career fair not productive because there are too many people or too few? Can we re-word that to say, “There aren’t job opportunities through the career fair?”
Should we combine “unwillingness to relocate” with “students wanting to stay in-state?”
What do you mean by “poor interview skills?” Does that include lack of training?
Ideas are shared in a round robin style, by the facilitator reading cards, or volunteered ideas. The facilitator will decide how to maximize the team members.

34. Voting/ranking: 1. Unwilling to re-locate 2. Poor interview skills
Idea #
Rank 3 7 4 6 5 2 1
1. Unwilling to re-locate
2. Poor interview skills
3. Weak resumes
4. Career fair doesn’t offer very many job opportunities
5. Students aren’t networking.
6. Not enough recruiters.
7. Bad job market
Idea #
Rank 1
3+1+1=5 2
4+2+3=9 3
7+6+7=20 4
6+3+6=15 5
2+4+2=8 6
1+5+4=10 7
5+7+5=17
List of ideas
Individual rankings
Combined points
Given the combined list of ideas, each team member does individual rankings, scoring the 7 ideas from Highest score is the best. Each individual’s rankings are totaled, giving the combined points for each idea. (In this example, we use only 3 team members.) The third idea scored the highest number of points (20) so it would be the output of the NGT.

35. Affinity Diagram
A tool for organizing a large number of ideas, opinions, and facts relating to a broad problem or subject area.

36. Affinity Diagram Procedure: State the issue in a full sentence.
Brainstorm using short sentences on
self-adhesive notes.
Post them for the team to see.
Sort ideas into logical groups.
Create concise descriptive headings for each group.

37. Topic
Affinity Statement
Data Card

38. Innovative product features
Activity
Innovative product features

39. Interrelationship Diagram
Identifies and explores causal relationships among related concepts or ideas.
It allows the team to classify the cause-and- effect relationships among all factors so that the key drivers and outcomes can be used to solve the problem.

41. Interrelationship Diagram
Steps:
The team should agree on the issue or problem statement.
All of the ideas or issues from other techniques or from brainstorming should be laid out.
Start with the first issue.
The second iteration is to compare other issues.

42. Interrelationship Diagram
Steps cont’d.:
The entire diagram should be reviewed and revised where necessary.
The diagram is completed by tallying the incoming and outgoing arrows and placing this information below the box.

43. No cause effect relationship
A weak cause effect relationship
A strong cause effect relationship

45. Interrelationship Diagram
Benefits:
Allows the team to identify root causes from subjective data.
Systematically explores cause-and-effect relationships.
Encourages members to think multidirectionally.
Develops team harmony and effectiveness.

46. Tree Diagram
Maps out the paths and tasks necessary to complete a specific project or reach a specified goal.

47. Procedure: Tree Diagram
Choose an action-oriented objective statement from the interrelationship diagram, affinity diagram, brainstorming, team mission statement.
Using brainstorming, choose the major headings.
Generate the next level by analyzing the major headings. Repeat this question at each level.

48. Encourages team members to think creatively.
Tree Diagram
Benefits:
Encourages team members to think creatively.
Makes large projects manageable.
Generates a problem-solving atmosphere.

49. Tree Diagram Example Cont.
Key Strategic Factor
Goals
Strategies

51. Matrix Diagram
Display relationships between ideas, activities or other dimensions in such a way as to provide logical connecting points between each item.
Data are presented in table form and can be objective or subjective, which can be given symbols with or without numerical values.
Identified in 1988 book, Management for Quality Improvement by Shigeru Mizuno

52. Matrix Diagram Procedure:
Select the factors affecting a successful plan.
Select the appropriate format (depend on the number of variables).
Determine the relationship symbols.

53. Matrix Diagram
Benefits:
Encourage the team to think in terms of relationship, their strength, and any pattern.

54. Matrix Diagram Exercise
A restaurant manager wants to improve customer’s dining experience!

55. Matrix Diagram Exercise cont.
How would you fill in the matrix?

57. Prioritization Matrices
Prioritizes issues, tasks, characteristics, based on weighted criteria using a combination of tree and matrix diagram techniques.
Once prioritized, effective decision can be made.
Prioritization matrices are designed to reduce the team’s options rationally before implementation planning occurs.

58. Prioritization Matrices
Steps:
Construct an L-Shaped matrix combining the options, which are the lowest-level of detail of the tree diagram with the criteria.
Determine the implementation criteria using the nominal group technique (NGT) or any other technique that will satisfactorily weight the criteria.

59. Prioritization Matrices
Steps cont’d.:
Prioritize the criteria using the NGT. Each team member weights the criteria so the total weight equals 1, and the results are totaled for the entire team.
Rank order the options in terms of importance by each criterion, average the results, and round to the nearest whole number.

60. Prioritization Matrices
Steps cont’d.:
Compute the option importance score under each criterion by multiplying the rank by the criteria weight.
-- refer to handout 1

61. Process Decision Program Chart
The PDPC avoids surprises and identifies possible countermeasures.
PDPC is a method for mapping out every conceivable event and contingency that can occur when moving from a problem statement to possible solutions.

63. Process Decision Program Chart
Steps:
The team state the objective.
That activity is followed by the first level.
In some cases a second level of detailed activities may be used.
The team brainstorms to determine what could go wrong with the conference, and these are shown as the “what-if” level.

64. Process Decision Program Chart
Steps cont’d.:
The countermeasures are brainstormed and placed in a balloon in the last level.
The last step is to evaluate the countermeasures and select the optimal ones by placing an O underneath. Place an X under those that are rejected.

66. Activity Network Diagram
Program evaluation and review technique (PERT).
Critical path method (CPM).
Arrow diagram.
Activity on node (AON).
The diagram shows completion times, simultaneous tasks, and critical activity path.

68. Activity Network Diagram
Steps:
The team brainstorms or documents all the task to complete a project.
The first task is located and placed on the extreme left of a large view work surface.
Any tasks that can be done simultaneously are placed below.

69. Activity Network Diagram
Steps cont’d.:
Repeat steps 2 and 3 until all tasks are placed in their correct sequence.
Number each task and draw connecting arrows.
Determine the critical path by completing the four remaining boxes in each task.

70. Activity Network Diagram for Green Productivity Project

72. Computer Training Center

73. Activity On Arrow for Computer Institute

74. Recommendations to Use Q.C. Tools
Mental Attitudes
- Keen awareness to the actual problem
- Eagerness to solve problem
- Be highly motivated for the challenge
Four Specific Keys
Understand the problem
Select the right tool for the job
Obtain appropriate verbal data
Interpret analytical results
For a TQM culture to exist and flourish, the most important factor to consider is mental attitude. This allows for complete awareness to the problem and an eagerness to solve it. The N7 Tools assist in developing the proper mental attitude. These tools will also motivate the group to meet the challenge.
To use The N7 Tools skillfully, four specific keys and abilities need to be recognized. (Nayatini 117)

75. Recommendations to Use Q.C. Tools
Understand the problem
Stage 1 - problem is unclear and not obvious
what exact issue should be addressed
Stage 2 - problem is obvious, but causes unknown
explore causes and single out valid ones
Stage 3 - problem and causes are known
required action is unknown
strategies and plan must be developed
When solving a problem using the The N7 Tools it is essential to know which stage of the problem-solving process that you have reached.
Which of the tools to use depends on the clarity of the problem. Also can the problem be identified, and if the causes are known and how to eliminate them.
There are three stages to the solution of the of a problem. They are:
Review each bullet point! (Nayatini 121)

76. Recommendations to Use Q.C. Tools
Selecting Right tool for the Job
Stage 1 - Collect verbal information on events
(Affinity Diagram)
Stage 2 - Choose tool to identify causes
(Relations Diagram / Matrix Diagram)
Stage 3 - List strategies and activities
(Tree Diagram / Relations Diagram)
Plan actual activities
(Arrow Diagram / PDPC Chart)
Be sure to choose the right tool for the job!
When you know which stage you have reached in the problem solving, the goal will become clear and the right tool will present itself.
With a Stage 1 problem, collect verbal information and use an Affinity Diagram to structure it. You will be able to identify the problem.
With a Stage 2 problem, choose a tool that will enable you to identify its causes. The Relations Diagram is appropriate when complex relationships exist among causes of a single result. The Matrix Diagram is effective when there are many problems or effects and can be related in row/column format.
With a Stage 3 problem, some method is needed to list and plan the activities required to solve the problem. A Tree Diagram can develop key points or strategies to achieve an objective. After the activities for solving the problem are identified, a schedule can be devise for carrying them out. An Arrow Diagram should be used for this. The PDPC can be used to develop and modified for the plan. (Nayatini 124)

77. Recommendations to Use Q.C. Tools
Obtaining appropriate verbal data
Three types of verbal data:
- Facts; factual observations expressed in words
- Opinions; factual information colored by opinion
- Ideas; New concepts created by analyzing facts
.Group Discussions:
- Ensures common understanding
- All data should be without bias or distortion
- Data should fit objective of the analysis
When gathering the verbal data, it is best to use a group setting. It ensures total understanding from all participants.
It is also important to distinguish the different types of verbal data. They are:
Review each bullet!
The goal for gathering verbal data by group discussion should include: (Nayatini 124)

78. Recommendations to Use Q.C. Tools
Interpreting Analytical Results
Information must be obtained for accomplishing
objectives from:
- Completed diagrams; or
- Process of completing diagrams
Analyze actual information obtained:
- Prepare summarized report with findings,
conclusions, and processes used
- Check if necessary data has been obtained, if not
- Discover the cause and take appropriate action
It is essential to obtain the correct information for accomplishing the objectives.
When using the N7 Tools, never construct a diagram and leave it that way. Always make some type of record of the findings, conclusions drawn, and the exact process used for constructing the diagram. This is especially true with Affinity Diagrams and Relations Diagrams.
Do not forget to check the results of analysis to ensure that you have actually obtained the data you need. If you have not, it is due to insufficient data or unskillful use of the N7 Tools. (Nayatini 126)

79. Exercises The roles of Suppliers Customers Efficiency Effectiveness
Service Industry Innovativeness
Value-added services and its benefits to the customers
Management tools to manufacture a product
Small group (< 5)
Big group