[To download this presentation, visit: https://www.oeconsulting.com.sg/training-presentations] The seven basic quality tools are effective for data analysis, process control, and quality improvement (numerical data). However, these basic tools cannot be used for non-numerical or verbal data. To organize verbal data into useful information, you would require the advanced quality tools. The Seven Advanced Tools of Quality (a.k.a Seven New Tools or Seven Management & Planning Tools) were developed with a design approach to organize verbal data diagramatically. These tools work in conjunction with the basic quality tools and can be used by management and staff to develop ideas, solve problems and formulate plans for improved project management. The Seven Advanced Tools are: 1) Affinity Diagram: Organizes a large number of ideas into their natural relationships. 2) Relations Diagram: Shows cause-and-effect relationships and helps analyze the natural links between different aspects of a complex situation. 3) Tree Diagram: Breaks down broad categories into finer and finer levels of detail, helping to move step-by-step thinking from generalities to specifics. 4) Matrix Diagram: Shows the relationship between two, three, or four groups of information and can give information about the relationship, such as its strength, the roles played by various individuals, or measurements. 5) Matrix Data Analysis Chart: A complex mathematical technique for analyzing matrices, often replaced by the similar prioritization matrix. A prioritization matrix is an L-shaped matrix that uses pairwise comparisons of a list of options to a set of criteria in order to choose the best option(s). 6) Arrow Diagram: Shows the required order of tasks in a project or process, the best schedule for the entire project, and potential scheduling and resource problems and their solutions. 7) Process Decision Program Chart: Systematically identifies what might go wrong in a plan under development. LEARNING OBJECTIVES 1. Acquire knowledge on the seven advanced quality tools for project planning and management. 2. Learn how to apply the seven management and planning tools to problem solving, projects, communication and daily management work. CONTENTS 1. PDCA Problem Solving 2. Affinity Diagram (KJ Method) 3. Relations Diagram (Interrelationship Diagram) 4. Tree Diagram 5. Matrix Diagram 6. Matrix Data Analysis Chart 7. Arrow Diagram 8. Process Decision Program Chart (PDPC)

1. SEVEN ADVANCED
TOOLS OF QUALITY
© Operational Excellence Consulting. All rights reserved.

2. © Operational Excellence Consulting
LEARNING OBJECTIVES
2
Acquire knowledge on the
seven advanced quality
tools for project planning
and management.
Learn how to apply the
seven management and
planning tools to problem
solving, projects,
communication and daily
management work.
1 2
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg

3. © Operational Excellence Consulting
CONTENTS
3
1. PDCA Problem-Solving
2. Stratification
3. Check Sheet
4. Pareto Chart
5. Cause and Effect Diagram
6. Histogram
7. Scatter Diagram
8. Control Chart

4. © Operational Excellence Consulting
PROBLEM SOLVING FUNNEL
4
Source: Adapted from Dennis
Breakdown
Go See
Grasp the situation
§ Actual vs. standard
§ Actual vs. ideal
Point of cause
§ Time and place where
events cause abnormality
5 Why
Analysis Why?
Root cause
Countermeasures
Big vague concern

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“
The problems that exist in
the world cannot be solved
by the level of thinking that
created them.”
ALBERT EINSTEIN
5

6. © Operational Excellence Consulting
PDCA CONCEPT
6
● PDCA stands for Plan-Do-Check-Act,
a four-step problem-solving
methodology
● It follows a continuous cycle of
improvement
● Emphasizes iterative refinement for
better outcomes
The
PDCA
Cycle

7. © Operational Excellence Consulting
THE PDCA CYCLE IS THE ENGINE OF CONTINUOUS IMPROVEMENT
7
Consolidation
through
Standardization
Quality
Improvement
P
D
C
A
P
D
C
A
Current
Standard
New
Standard
Time
Continuous
Improvement

8. © Operational Excellence Consulting
PDCA PROBLEM SOLVING: PHASE DESCRIPTIONS
8
PLAN:
Identify issues, set clear
goals, and make a detailed
project plan. Form a team, get
leadership support, and define
the scope. This phase creates
a roadmap aligning with
goals.
DO:
Execute the plan. Collect
data, understand the issue,
and implement corrective
actions. Monitor progress,
allocate resources, and
communicate effectively for
smooth execution.
ACT:
Standardize successful
processes, train the team, and
establish continuous
monitoring. Implement
feedback mechanisms for
ongoing improvement. Make
successful practices a routine
for continuous learning.
CHECK:
“Check” involves evaluating
results. Measure outcomes
against targets, gather feedback,
and analyze deviations.
Document lessons learned and
celebrate successes. Ensure the
actions effectively address the
issues.
PDCA
Problem
Solving
Process

9. © Operational Excellence Consulting
ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS
9
1
2
3
4
5
6
7
8
Select the Theme
Plan the Schedule
Grasp the Present Situation
Establish the Target
Analyze the Cause & Identify Corrective Action
Implement Corrective Action
Evaluate the Result
Standardize & Follow-up
PLAN
ACT
CHECK
DO

10. © Operational Excellence Consulting
THE 8-STEP PDCA PROBLEM SOLVING PROCESS MODEL
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1
2
3
4
5
6
7
8 Select the
Theme
Plan the
Schedule
Grasp the
Present
Situation
Establish
the Target
Analyze the
Cause & Identify
Corrective
Action
Implement
Corrective
Action
Evaluate
the Result
Standardize &
Follow Up
PDCA
PROBLEM
SOLVING
PROCESS

11. © Operational Excellence Consulting
WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING?
11
Phase Problem Solving Steps Applicable Tools
PLAN
1. Select the Theme
Brainstorming / Matrix Diagram / Selection Criteria / Team
Consensus
2. Plan the Schedule Gantt Chart
3. Grasp the Present Situation
Data Collection / Stratification / Flowcharting / Pie Chart / Check
Sheet / Pareto Diagram / Bar Chart / Histogram
4. Set the Target Pareto Analysis / Conduct Experiments / Check Past Trends
5. Analyze the Cause & Identify
Corrective Action
Brainstorming / Cause & Effect Diagram / 5 Whys / Tree Diagram /
Control Chart / Scatter Diagram / Alternative Solutions
DO 6. Implement Corrective Action Arrow Diagram / Process Flowchart / Pictures / Diagrams
CHECK 7. Evaluate the Result
Collect New Data / Check Sheet / Pareto Comparison / Bar Chart
Comparison / Radar Chart / Target Variance
ACT 8. Standardize & Follow Up
In the standardization plan, document the new procedures. Display
on notice board or intranet or conduct briefings.
Show the follow-up actions using the PDPC.

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THE 7 ADVANCED TOOLS OF QUALITY
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1. Affinity Diagram
2. Relations Diagram
3. Tree Diagram
4. Matrix Diagram
5. Matrix Data Analysis Chart
6. Arrow Diagram
7. Process Decision Program Chart (PDPC)

13. © Operational Excellence Consulting
AFFINITY DIAGRAM: PURPOSES
13
Pattern
Recognition
Identify patterns and
relationships among
ideas.
Problem Solving
Systematically analyze
and solve complex
problems.
Idea Generation
Organize and generate
ideas collaboratively.

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EXAMPLE: AFFINITY DIAGRAM OF LATE ORDERS
14
Orders Consistently Late Last Quarter
Communications Issues
Sales & Marketing
Fail to alert when price
changes may affect
volume
Inconsistent adherence to
due dates
Fail to check production
schedule before promising
product
Manufacturing
Fail to keep production
schedule updated
Fail to keep inventory
updated
Fail to communicate
unscheduled equipment
down-time
Equipment Issues
Equipment Breakdown
Inconsistent adherence to
maintenance dates
Equipment operated
outside of specifications
Old equipment, due to be
replaced, not operating at
peak capacity
External Factors
Major Supplier Filed
for Bankruptcy
Just-in-time inventory
system failed
Lack of inventory affects
60 orders
New supplier overloaded
with new clients
ILLUSTRATIVE

15. © Operational Excellence Consulting
© Operational Excellence Consulting. All rights reserved.
CREATING AN AFFINITY DIAGRAM
Instructions:
1. Generate ideas.
2. Display the ideas.
3. Sort ideas into related groups.
4. Create header cards for the groups.
5. Draw the finished Affinity Diagram.
15

16. © Operational Excellence Consulting 16
RELATIONS DIAGRAM: WHEN TO USE
Process
Optimization
In process improvement
projects to map out
interactions.
Systems Thinking
When adopting a
systems thinking
approach to problem-
solving.
Interdisciplinary
Collaboration
When multiple
disciplines or teams
collaborate on a project.

17. © Operational Excellence Consulting
EXAMPLE: RELATIONSHIPS AMONG CAUSES OF LOW CUSTOMER
SATISFACTION
17
ILLUSTRATIVE
HR Management 3/0
Lack of Training 1/1
Bad Hiring 1/1
Low Staffing 2/1
Unskilled Employees 4/2
Bad Design 2/1
Wrong Answers 1/1
Poor Support 1/4
Long Hold Times 1/1
Faulty Market Surveys 1/1
Poor Materials 1/1
Low Quality Product 1/3
Ineffective Marketing 1/1
High Pricing 2/1
Low Customer Satisfaction 0/3

18. © Operational Excellence Consulting
RELATIONS DIAGRAM: PROCEDURES
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1. Identify Elements: Identify and list the elements or factors involved.
2. Determine Relationships: Define and determine the relationships between
elements.
3. Create Diagram: Use arrows or lines to visually represent the relationships.
4. Label Connections: Clearly label the connections between elements.
5. Prioritize Relationships: Prioritize or emphasize key relationships.
6. Review and Update: Periodically review and update the diagram as needed.

19. © Operational Excellence Consulting
TREE DIAGRAM: PURPOSES
19
Decision Mapping
Map out decisions and
their potential
outcomes.
Complex Issue
Analysis
Break down complex
issues into manageable
components.
Hierarchy
Visualization
Visually represent
hierarchical
relationships and
structures.

20. © Operational Excellence Consulting
EXAMPLE 1: RISK BREAKDOWN STRUCTURE
20
Project Risks
Technical
Requirements
Technology
Complexity
External
Subcontractors
Regulatory
Market
Customer
Weather
Organizational
Project
Dependencies
Resources
Funding
Prioritization
Project
Management
Estimating
Planning
Controlling
Communication
ILLUSTRATIVE
Vertical Tree Diagram

21. © Operational Excellence Consulting
● Clearly define the specific
objective or decision to be mapped
● Identify and label major branches
representing key factors or options
● Break down major branches into
detailed subcategories or factors
TREE DIAGRAM: PRACTICAL TIPS
● Arrange branches in a logical and
sequential order for clarity
● Use concise and clear labels for
each branch and subcategory
● Represent hierarchy visually,
emphasizing main branches and
subcategories
21

22. © Operational Excellence Consulting
TYPES OF MATRIX DIAGRAMS
22
Matrix Type Description
L-Shaped Matrix Represents relationships between two sets of items, often used for analyzing
interactions or dependencies.
Y-Shaped Matrix Expands on the L-shaped matrix by incorporating a third factor, allowing for a
more comprehensive analysis.
C-Shaped Matrix Focuses on comparing items across two dimensions, typically used for
decision-making or prioritization.
X-Shaped Matrix Integrates four sets of items, providing a more intricate analysis of
relationships among multiple factors.
Linear Matrix Organizes items in a linear format, suitable for straightforward comparisons
and evaluations.
T-Shaped Matrix Incorporates three sets of items, forming a T-shape, useful for analyzing
relationships among multiple factors.

23. © Operational Excellence Consulting 23
MATRIX DIAGRAM: WHEN TO USE
Resource
Allocation
In determining the
allocation of resources
to different factors.
Process
Optimization
In process improvement
initiatives to analyze
and optimize
relationships.
Complex Issue
Resolution
When resolving
complex issues with
multiple interrelated
factors.

24. © Operational Excellence Consulting
EXAMPLE 1: L-SHAPED MATRIX DIAGRAM
24
Cost Handling Features Compact Size Quality of Shots
Nikon F4 ¢ ¤ Δ ¤
Nikon F90 Δ ¢ ¤ ¤
Nikon FM2 Δ Δ ¤ ¢
Nikon F50 ¤ Δ Δ ¢
Nikon F-601 ¢ ¤ Δ ¤
Evaluation of Cameras
Criteria
Camera Model
Key: ¤ Strong Relationship ¢ Average Relationship Δ Weak Relationship
ILLUSTRATIVE

25. © Operational Excellence Consulting
MATRIX DATA ANALYSIS CHART (MDAC): PURPOSES
25
Comparative
Assessment
Compare and evaluate
data points across
different categories.
Pattern
Recognition
Identify patterns or
trends in data
interactions.
Relationship
Analysis
Analyze and illustrate
relationships between
two sets of data.

26. © Operational Excellence Consulting
EXAMPLE 2: CUSTOMER FEEDBACK
26
ILLUSTRATIVE
Demographics
Positive
Feedback
Neutral
Feedback
Negative
Feedback
Age Group 20-39 80% 15% 5%
Age Group 40-59 60% 25% 15%
Age Group 60 &
Above
50% 30% 20%

27. © Operational Excellence Consulting
MDAC: PROCEDURES
27
1. Define Categories: Clearly define the categories for both sets of data.
2. Collect Data: Collect and organize relevant data for each category.
3. Create Matrix: Establish a matrix with categories as rows and columns.
4. Input Data: Input the data values into the respective cells of the matrix.
5. Apply Formatting: Use formatting techniques to enhance visual clarity.
6. Interpret Results: Analyze the matrix to identify relationships or patterns.

28. © Operational Excellence Consulting 28
ARROW DIAGRAM: WHEN TO USE
Resource
Allocation
In allocating resources
and scheduling for
optimal efficiency.
Complex Project
Management
For complex projects
with multiple
interrelated tasks.
Project Planning
When planning the
sequence and
dependencies of project
tasks.

29. © Operational Excellence Consulting
EXAMPLE 1: CRITICAL PATH METHOD
29
ILLUSTRATIVE
10 30
20
50
40
A
B C
E
D F
T=3 wk
T=1 wk T=3 wk
T=4 wk
T=2 wk
T=3 wk

30. © Operational Excellence Consulting
ARROW DIAGRAM: PROCEDURES
30
1. Task Identification: Identify and list all project tasks.
2. Determine Dependencies: Establish dependencies between tasks.
3. Sequence Tasks: Arrange tasks in a logical sequence.
4. Assign Durations: Estimate the duration for each task.
5. Create Arrows: Use arrows to represent task dependencies.
6. Critical Path Analysis: Identify and analyze the critical path.

31. © Operational Excellence Consulting
PROCESS DECISION PROGRAM CHART (PDPC): PURPOSES
31
Contingency
Planning
Develop contingency
plans to address
identified risks.
Visualizing
Outcomes
Visualize potential
outcomes and their
implications.
Risk Identification
Identify and analyze
potential risks in a
project or process.

32. © Operational Excellence Consulting
EXAMPLE: PDPC FOR VACATION PLANNING
32
Can’t agree
All sites
already full
Can’t get time
off work
As vacation
approaches, get too
busy to leave
Will choose same
date as everyone
else - crowds
All hotels
already full
Won’t be able to
find quality hotel
in site area
Choose vacation
site
Choose vacation
date
Choose hotel
Make arrangements
for absence
Make basic
choices
PLANNING A
VACATION
Research
Develop budget
Start discussing
sites early
Choose off-peak
date and inform
work in advance
Go to site with
many hotels to
choose from
ILLUSTRATIVE

33. © Operational Excellence Consulting
● Clearly define the primary
objectives and sub-objectives
● Systematically identify potential
failures or obstacles
● Develop and map out contingency
actions for each failure point
PDPC: PRACTICAL TIPS
● Prioritize contingency actions
based on severity and impact
● Collaborate with individuals from
different functions for diverse
insights
● Regularly review and update the
PDPC as the project evolves
33

34. © Operational Excellence Consulting
“
Quality is not an act,
it is a habit.”
ARISTOTLE
34

35. © Operational Excellence Consulting
Operational Excellence Consulting is a
management training and consulting firm
that assists organizations in improving
business performance and effectiveness.
Based in Singapore, the firm’s mission is to
create business value for organizations
through innovative design and operational
excellence management training and
consulting solutions. For more information,
please visit www.oeconsulting.com.sg
ABOUT OPERATIONAL EXCELLENCE CONSULTING