2. Tools In Quality Management Techniques
• As in any home toolbox, you can have
dozens, if not hundreds, of different
tools used for different tasks.
• Such is the case with quality
improvement. There are many tools
available for your use depending on
what task you want to accomplish.
• However, like your home toolbox, there
are a small set of basic tools that are
your go-to tools you will use most often
and on most projects.
3. Problem Solving through 7 QC Tools
Check Sheet
Histogram
Pareto diagram
Cause and Effect diagram
Flow chart/Process maps
Scatter diagram
Control Chart
1
2
3
4
5
6
7
4. Step in Problem Solving
i. Defining the problem
ii. Identifying the root cause
iii. Generating possible Solutions
iv. Choosing the best Solutions
v. Implementing the solution
vi. Verifying the solution effectiveness
6. Our problem at hand
• An online retail company’s revenues has
dipped down by 20% (USD 100 million in 2018
TO USD 80 million in 2019).
• Its net promoter score has come down by
30%. – (customer loyalty and satisfaction
measurement)
• It sets up a target to achieve revenue target of
USD 120 Million by 2023 (30%).
8. Steps taken
• A sample of 1000
customers are chosen using
statistical sampling method.
• Survey is being conducted
where the company wanted
to learn customer pulse.
QUESTIONNAIRE
9. Customer Satisfaction Rating (CSR)
Name Rating Contact
Name 1 Dissatisfied ..
Name 2 Extremely Dissatisfied …
… Cannot say …
Name 800 Extremely Dissatisfied …
Name 900 Satisfied …
Name 1000 Extremely Dissatisfied …
12. Reason why customers are unhappy
1. Product on time delivery
2. Bad user experience
3. Insufficient product range
4. Higher pricing
5. Bad quality products
6. Issue with payments
7. Product manual
“It takes long time to
solve all these problems.
Meanwhile, we will end
up losing our customer
base. Is there a way out?”
- Management
Which are the top reason
we can addressed ?
13. 3. Pareto Analysis
• 80% of the problem are caused by 20% of the
factors or causes.
• By focusing on 20% of the factors, managers
can attack 80% of the problems
• Use of 80:20 rule.
14. 3. Pareto Chart
Complaint
type Count
Frequency/
Quantity
Cumulative
%
Product on time delivery 480 480 48
Bad user experience 320 800 80
Insufficient product range 100 900 90
Higher pricing 40 940 94
Bad quality products 30 970 97
Issue with payments 20 990 99
Product manual 10 1000 100
48=480/1000x100
80=800/1000x100
Descending
order
Cumulative
frequency
Frequency
Cumulative
percentage(%)
16. Frequency
Cumulative
%
Problem area to focus
Complaint
type Count
Frequency/
Quantity
Cumulative
%
Product on time delivery 480 480 48
Bad user experience 320 800 80
Insufficient product range 100 900 90
Higher pricing 40 940 94
Bad quality products 30 970 97
Issue with payments 20 990 99
Product manual 10 1000 100
Problem area to focus
17. How can we arrest these problems? -Brain
Storming
1. Product on time delivery
2. Bad user experience
Gaps in order
fulfillment
process
Lack of quality
processes
Tools unavailability
18. Product on time delivery: Root causes
1. Gaps in order fulfillment process
2. Lack of quality processes
3. Tools unavailability
4. Poor Training
5. Lack of motivation
6. Frequent power outages
7. Late delivery from vendors
24. 6. Flow Chart:Oder fullfillment process
Receive
order
•Confirm order
•Collect payment
•Post-process order
Prepare
Package
•Items in stock
•Collect items from suppliers
•Packaging
Delivery
•Delivery Team
•3rd party logistics supplier
•Cash on delivery
After sales
support
•Refund order
•Return item
•Warranty
25. 7. Control Chart
*Average we
should be able to
ship within 48 hr,
process capability
says at max, may
take 72 hours, at
min will take 24
hours.
UCL/LCL-upper/lower control limit (derived from process capability)
USL/LSL-upper/lower specification limit (customer expectation)
**USL/LSL should always within the UCL&LCL, then only customers will be happy.
33. Vl-Verifying the solution effectiveness
Compare with result achieved
Recollect surveys to gauge customer
pulse
34. Step to draw pareto chart (Data based
on Table 2)
1. Arrange data in descending order
2. Calculate cumulative value.
3. Calculate the percentage cumulative (%).
4. Draw pareto chart (Horizontal Axis-Players, Vertical
Axis-Run score)
5. Run score shown by bar chart (descending order)
6. Cumulative percentage shown by line graph
(ascending order)
**Step to create pareto chat using excel- https://www.excel-
easy.com/examples/pareto-chart.html
35. Example how to draw Pareto chart
Table 2
Player Run score Cumulative score % cumulative
score
Rajan 111 111 29.60
Karan 85 196 52.27
Mukul 65 261 69.60
Wasim 45 306 81.60
Ravi 20 326 86.93
Sachin 15 341 90.93
Gautam 12 353 94.13
Bhuvan 10 363 96.80
Krishan 5 368 98.13
Sunil 4 372 99.20
Nasim 3 375 100.00
Table 1
Player Sachin Rajan Mukul Gautan Karan Bhuvan Ravi Wasim Krishan Nasi
m
Sunial Total
Runs
Scored
15 111 65 12 85 10 20 45 5 3 4 375
1
2
Descending
order
3
Sketch from left to right
36. Step to draw scatter plot
1. Identify independent variable, put on X-Axis is
(Cause/factor).
2. Identify dependent variable, put on Y-Axis
(effect/outcome).
3. Put a scale on X-axis and Y-axis (based on smallest
value and largest value).
4. Plot a point that represent a pair of data.
5. Interpret the relationship between two variable.
37. Example how to draw Scatter plot
Name Height (cm) Weight (kg)
Fred 190 82
Lucy 168 61
Jill 175 68
Li 188 91
Harry 175 85
Gertrude 151 59
Peggy 160 65
