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SEVEN BASIC TOOLS
OF QUALITY
© Operational Excellence Consulting. All rights reserved.
© Operational Excellence Consulting
LEARNING OBJECTIVES
2
To understand the
seven basic tools for
quality and process
improvement.
To learn how to apply
the seven basic tools
of quality to problem
solving or daily work.
1 2
NOTE: This is a PARTIAL PREVIEW.
To download the complete presentation, please
visit: https://www.oeconsulting.com.sg
© 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
© Operational Excellence Consulting
WHAT IS A PROBLEM?
A problem is a deviation from a standard, i.e., a difference between
what should be happening and what is actually happening.
Standard – what should
be happening
Current situation – what is
actually happening
Gap = Problem
4
© Operational Excellence Consulting
WHAT IS PROBLEM SOLVING?
● Problem-solving is the
elimination of the cause of a
nonconformity, potential
nonconformity or other
undesirable condition in order
to prevent its occurrence or
recurrence.
5
© Operational Excellence Consulting
ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS
6
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
© Operational Excellence Consulting
THE 8-STEP PDCA PROBLEM SOLVING PROCESS MODEL
7
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
© Operational Excellence Consulting
WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING?
8
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.
© Operational Excellence Consulting
THE 7 BASIC TOOLS OF QUALITY
9
1. Stratification
2. Check Sheet
3. Pareto Chart
4. Cause and Effect Diagram
5. Histogram
6. Scatter Diagram
7. Control Chart
© Operational Excellence Consulting
“
DR. KAORU ISHUKAWA
10
As much as 95% of quality
related problems in the
factory can be solved with
seven fundamental
quantitative tools.”
© Operational Excellence Consulting
STRATIFICATION: PURPOSES
11
Identifying Patterns
Uncover patterns or
variations within data
subsets.
Root Cause
Analysis
Facilitate the
identification of
underlying issues.
Data Segmentation
Divide data into distinct
categories for analysis.
© Operational Excellence Consulting
EXAMPLE 2: STRATIFICATION BY MACHINE
12
0
5
10
15
20
25
30
35
40
1 2 3 4 5 6
Machine A
Machine B
Machine C
Defect
Quantity
Month
ILLUSTRATIVE
© Operational Excellence Consulting 13
CHECK SHEET: WHEN TO USE
Quality Control
Inspections
During quality control
inspections to record
observations.
Problem
Identification
When identifying and
analyzing problems to
gather relevant data.
Routine Monitoring
When regularly
monitoring a process or
activity.
© Operational Excellence Consulting
EXAMPLE: DEFECT TRACKING
14
Defective Item
Mon
9/3
Tue
10/3
Wed
11/3
Thu
12/3
Fri
13/3
Total
Mold Cracked 5 3 6 3 4 21
Fibers 2 0 5 1 0 8
Grit 4 2 3 5 0 14
Pinholes 1 5 0 2 1 9
Cracks 0 1 1 0 0 2
Other 1 3 0 0 3 7
Total 13 14 15 11 8 61
Defect Tracking Check Sheet (9/3 to 13/3)
ILLUSTRATIVE
© Operational Excellence Consulting
PARETO’S PRINCIPLE (80/20 RULE)
Examples:
● 80% of your net income comes from
20% of your customers
● 80% of your sales are generated by
20% of your products
● 80% of your emotions are created by
20% of your thoughts
● 80% of your work results from 20% of
your effort
15
Effort Result
20%
20%
80%
80%
Important Not Important
© Operational Excellence Consulting
EXAMPLE 1: PIZZA DEFECTS
16
Wrong
Toppings
Pizza
Cold
Pizza
Late
Wrong
Crust
Tastes
Bad
Forgot
Breadstic
ks
Driver
Had No
Change
Smashed
in Box
Wrong
Price
Driver
Rude
All other
Quantity 29 25 22 13 10 7 4 3 2 1 2
Cum % 25% 46% 64% 75% 84% 90% 93% 96% 97% 98% 100%
% of Total 25% 21% 19% 11% 8% 6% 3% 3% 2% 1% 2%
0%
20%
40%
60%
80%
100%
120%
-
5
10
15
20
25
30
35
Cumulative
Percent
Occurrences
Pareto Chart of Pizza Defects
ILLUSTRATIVE
© Operational Excellence Consulting
EXAMPLE 2: COMPARING ‘BEFORE’ AND ‘AFTER’ RESULTS
17
ILLUSTRATIVE
Before:
Jan-Jun 2021
Errors Made on Faxed Orders
After:
Jul-Dec 2021
10
20
30
40
50
60
70
80
90
100
110
120
0
Missing
Information
Wrong Product
Information
Unreadable Wrong Billing
Information
PO and Order
Form don’t Match
Other
Count
Error Type
© Operational Excellence Consulting
“
When we fail to grasp the
systemic source of problems,
we are left to ‘push on’
symptoms rather than
eliminate underlying causes.”
PETER SENGE
18
The Fifth Discipline
© Operational Excellence Consulting
CAUSE & EFFECT DIAGRAM: PURPOSES
19
Visualize
Relationships
Visually represent the
relationships between
causes and effects.
Problem Solving
Support collaborative
problem-solving and
analysis.
Identify Causes
Systematically identify
potential causes of a
specific issue.
© Operational Excellence Consulting
CAUSE & EFFECT DIAGRAM (MANUFACTURING)
20
EFFECT
CAUSES
S
u
b
-
c
a
u
s
e
Cause
Machines
Measurements Materials
Methods
Environment
Manpower
Problem
Statement
© Operational Excellence Consulting
HIGH
SCRAP OF
BARCODE
LABELS
MAN MACHINE
MATERIAL METHOD
Handling
Wrinkled
Torn
Improper
training
Machine
Breakdown
Ineffective
adhesive
Illegible
Smear
Printwheel Dirty
Worn Ribbon
Design of label
Damage
Poor printing
Improper storage
Wrong orientation
Process changes
Improper storage
Size of label
Process changes
EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF
BARCODE LABELS” ILLUSTRATIVE
© Operational Excellence Consulting
EXAMPLE: HISTOGRAM OF TURNAROUND TIMES
ILLUSTRATIVE
Histogram of Pharmacy Drug Dispensing Turnaround Times
50
40
60
30
10
0
20
0 - 10 11 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 - 80 81 - 90 91 - 100
Frequency
Turnaround Time (mins)
22
© Operational Excellence Consulting
● Clearly define and label data bins
for accurate representation
● Select interval widths that suit the
data distribution for clarity
● Ensure uniformity in units across
the histogram for accuracy
HISTOGRAM: PRACTICAL TIPS
● Clearly title and label the
histogram for easy interpretation
● Balance bar heights to avoid
distortion and misinterpretation
● Adapt the histogram to suit the
audience’s familiarity with
statistical concepts
23
© Operational Excellence Consulting
EXAMPLE: SCATTER DIAGRAM
24
0
1
2
3
4
5
0 5 10 15 20
Quantitative
Values
Part Clearance
Relationship between Variables
ILLUSTRATIVE
© Operational Excellence Consulting
“
W. EDWARDS DEMING
25
Understanding variation
is the key to success in
quality and business.”
© Operational Excellence Consulting
EXAMPLE: CONTROL CHART
26
Data points outside the control limits suggest that there are
special causes to the process deviation.
Upper Control Limit
Lower Control Limit
Average
© Operational Excellence Consulting
p-, np-, c-, AND u-CHARTS CREATION
27
1. Sampling Plan: Determine the appropriate sampling plan.
2. Data Collection: Collect sample data at specified intervals.
3. Metric Calculation: Calculate relevant metric (n, np, c, or u). Calculate
appropriate centerline.
4. Plotting: Plot the data.
5. Control Limits: After 20+ measurements, calculate control limits. Take
action if the chart is out of control.
© Operational Excellence Consulting
CONTROL CHARTS: SPECIAL CAUSES
28
UCL
LCL
UCL
LCL
UCL
LCL
UCL
LCL
OUTLIERS SHIFTS
TRENDS CYCLES
X
X
X
X
X
1 data point falling outside the control limits
6 or more points in a row steadily increasing
or decreasing
8 or more points in a row on one side of the
centerline
14 or more points alternating up and down
© 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

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Seven Basic Tools of Quality (Seven Basic QC Tools)

  • 1. SEVEN BASIC TOOLS OF QUALITY © Operational Excellence Consulting. All rights reserved.
  • 2. © Operational Excellence Consulting LEARNING OBJECTIVES 2 To understand the seven basic tools for quality and process improvement. To learn how to apply the seven basic tools of quality to problem solving or daily 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 WHAT IS A PROBLEM? A problem is a deviation from a standard, i.e., a difference between what should be happening and what is actually happening. Standard – what should be happening Current situation – what is actually happening Gap = Problem 4
  • 5. © Operational Excellence Consulting WHAT IS PROBLEM SOLVING? ● Problem-solving is the elimination of the cause of a nonconformity, potential nonconformity or other undesirable condition in order to prevent its occurrence or recurrence. 5
  • 6. © Operational Excellence Consulting ALIGNING PDCA CYCLE WITH THE PROBLEM-SOLVING PROCESS 6 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
  • 7. © Operational Excellence Consulting THE 8-STEP PDCA PROBLEM SOLVING PROCESS MODEL 7 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
  • 8. © Operational Excellence Consulting WHERE ARE THE TOOLS USED IN PDCA PROBLEM SOLVING? 8 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.
  • 9. © Operational Excellence Consulting THE 7 BASIC TOOLS OF QUALITY 9 1. Stratification 2. Check Sheet 3. Pareto Chart 4. Cause and Effect Diagram 5. Histogram 6. Scatter Diagram 7. Control Chart
  • 10. © Operational Excellence Consulting “ DR. KAORU ISHUKAWA 10 As much as 95% of quality related problems in the factory can be solved with seven fundamental quantitative tools.”
  • 11. © Operational Excellence Consulting STRATIFICATION: PURPOSES 11 Identifying Patterns Uncover patterns or variations within data subsets. Root Cause Analysis Facilitate the identification of underlying issues. Data Segmentation Divide data into distinct categories for analysis.
  • 12. © Operational Excellence Consulting EXAMPLE 2: STRATIFICATION BY MACHINE 12 0 5 10 15 20 25 30 35 40 1 2 3 4 5 6 Machine A Machine B Machine C Defect Quantity Month ILLUSTRATIVE
  • 13. © Operational Excellence Consulting 13 CHECK SHEET: WHEN TO USE Quality Control Inspections During quality control inspections to record observations. Problem Identification When identifying and analyzing problems to gather relevant data. Routine Monitoring When regularly monitoring a process or activity.
  • 14. © Operational Excellence Consulting EXAMPLE: DEFECT TRACKING 14 Defective Item Mon 9/3 Tue 10/3 Wed 11/3 Thu 12/3 Fri 13/3 Total Mold Cracked 5 3 6 3 4 21 Fibers 2 0 5 1 0 8 Grit 4 2 3 5 0 14 Pinholes 1 5 0 2 1 9 Cracks 0 1 1 0 0 2 Other 1 3 0 0 3 7 Total 13 14 15 11 8 61 Defect Tracking Check Sheet (9/3 to 13/3) ILLUSTRATIVE
  • 15. © Operational Excellence Consulting PARETO’S PRINCIPLE (80/20 RULE) Examples: ● 80% of your net income comes from 20% of your customers ● 80% of your sales are generated by 20% of your products ● 80% of your emotions are created by 20% of your thoughts ● 80% of your work results from 20% of your effort 15 Effort Result 20% 20% 80% 80% Important Not Important
  • 16. © Operational Excellence Consulting EXAMPLE 1: PIZZA DEFECTS 16 Wrong Toppings Pizza Cold Pizza Late Wrong Crust Tastes Bad Forgot Breadstic ks Driver Had No Change Smashed in Box Wrong Price Driver Rude All other Quantity 29 25 22 13 10 7 4 3 2 1 2 Cum % 25% 46% 64% 75% 84% 90% 93% 96% 97% 98% 100% % of Total 25% 21% 19% 11% 8% 6% 3% 3% 2% 1% 2% 0% 20% 40% 60% 80% 100% 120% - 5 10 15 20 25 30 35 Cumulative Percent Occurrences Pareto Chart of Pizza Defects ILLUSTRATIVE
  • 17. © Operational Excellence Consulting EXAMPLE 2: COMPARING ‘BEFORE’ AND ‘AFTER’ RESULTS 17 ILLUSTRATIVE Before: Jan-Jun 2021 Errors Made on Faxed Orders After: Jul-Dec 2021 10 20 30 40 50 60 70 80 90 100 110 120 0 Missing Information Wrong Product Information Unreadable Wrong Billing Information PO and Order Form don’t Match Other Count Error Type
  • 18. © Operational Excellence Consulting “ When we fail to grasp the systemic source of problems, we are left to ‘push on’ symptoms rather than eliminate underlying causes.” PETER SENGE 18 The Fifth Discipline
  • 19. © Operational Excellence Consulting CAUSE & EFFECT DIAGRAM: PURPOSES 19 Visualize Relationships Visually represent the relationships between causes and effects. Problem Solving Support collaborative problem-solving and analysis. Identify Causes Systematically identify potential causes of a specific issue.
  • 20. © Operational Excellence Consulting CAUSE & EFFECT DIAGRAM (MANUFACTURING) 20 EFFECT CAUSES S u b - c a u s e Cause Machines Measurements Materials Methods Environment Manpower Problem Statement
  • 21. © Operational Excellence Consulting HIGH SCRAP OF BARCODE LABELS MAN MACHINE MATERIAL METHOD Handling Wrinkled Torn Improper training Machine Breakdown Ineffective adhesive Illegible Smear Printwheel Dirty Worn Ribbon Design of label Damage Poor printing Improper storage Wrong orientation Process changes Improper storage Size of label Process changes EXAMPLE 1: CAUSE AND EFFECT DIAGRAM FOR “HIGH SCRAP OF BARCODE LABELS” ILLUSTRATIVE
  • 22. © Operational Excellence Consulting EXAMPLE: HISTOGRAM OF TURNAROUND TIMES ILLUSTRATIVE Histogram of Pharmacy Drug Dispensing Turnaround Times 50 40 60 30 10 0 20 0 - 10 11 - 20 21 - 30 31 - 40 41 - 50 51 - 60 61 - 70 71 - 80 81 - 90 91 - 100 Frequency Turnaround Time (mins) 22
  • 23. © Operational Excellence Consulting ● Clearly define and label data bins for accurate representation ● Select interval widths that suit the data distribution for clarity ● Ensure uniformity in units across the histogram for accuracy HISTOGRAM: PRACTICAL TIPS ● Clearly title and label the histogram for easy interpretation ● Balance bar heights to avoid distortion and misinterpretation ● Adapt the histogram to suit the audience’s familiarity with statistical concepts 23
  • 24. © Operational Excellence Consulting EXAMPLE: SCATTER DIAGRAM 24 0 1 2 3 4 5 0 5 10 15 20 Quantitative Values Part Clearance Relationship between Variables ILLUSTRATIVE
  • 25. © Operational Excellence Consulting “ W. EDWARDS DEMING 25 Understanding variation is the key to success in quality and business.”
  • 26. © Operational Excellence Consulting EXAMPLE: CONTROL CHART 26 Data points outside the control limits suggest that there are special causes to the process deviation. Upper Control Limit Lower Control Limit Average
  • 27. © Operational Excellence Consulting p-, np-, c-, AND u-CHARTS CREATION 27 1. Sampling Plan: Determine the appropriate sampling plan. 2. Data Collection: Collect sample data at specified intervals. 3. Metric Calculation: Calculate relevant metric (n, np, c, or u). Calculate appropriate centerline. 4. Plotting: Plot the data. 5. Control Limits: After 20+ measurements, calculate control limits. Take action if the chart is out of control.
  • 28. © Operational Excellence Consulting CONTROL CHARTS: SPECIAL CAUSES 28 UCL LCL UCL LCL UCL LCL UCL LCL OUTLIERS SHIFTS TRENDS CYCLES X X X X X 1 data point falling outside the control limits 6 or more points in a row steadily increasing or decreasing 8 or more points in a row on one side of the centerline 14 or more points alternating up and down
  • 29. © 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