The seven traditional tools of quality – New management tools – Six-sigma: Concepts, methodology, applications to manufacturing, service sector including IT – Bench marking– Reason to bench mark, Bench marking process – FMEA – Stages, Types

1. UNIT- III
TQM TOOLS
&
TECHNIQUES - 1

2. SEVEN TRADITIONAL TOOLS
OF QUALITY (Q-7 TOOLS)
• Check sheets
• Histograms
• Cause and effect diagrams
• Pareto diagrams
• Stratification analysis
• Scatter diagrams
• Control charts

3. Tool 1: CHECK SHEET
• A check sheet also known as tally sheet
• Used for systematic data gathering and
registering
• To get a clear view of the facts
• To track how often something occurs
• It is tailored for each situation/application
• Used to indicate the frequency of certain
occurrences

4. CHECK SHEET

5. Tool 2: HISTOGRAM
• A histogram is a bar chart/ diagram/graph
• It shows a distribution of variable quantities or
characteristics
• Graphical distribution of the numerical data
• Data are displaced as a series of rectangles of equal
width and varying heights
• Shows where most frequently occurring values are
located and the data distributed
• Tool for determining the maximum process results
• Quick review of features of a complete set of data

6. HISTOGRAM

7. Tool 3: CAUSE AND EFFECT
DIAGRAM
• It is also called as fish bone diagram or Ishikawa
diagram
• It is a graphical chart to list and analyze the
potential cause of a given problem and its effect
• It consists of a central stem leading to the effect
with multiple branches coming off the stem listing
the various groups of possible causes of the
problems
• Used in research, manufacturing, marketing,
office operations, services etc.

9. Tool 4: PARETO DIAGRAM
• It is a diagnostic tool commonly used for separating the
vital few causes that account for a dominant share of quality
loss
• Pareto principle states that a few of the defects account for
most of the effects
• Also called as 80/20 rule and as ABC analysis which means
only 20 % of problems (defects) account for 80% of the
effect
• Is a method of classifying items, events or activities
according to their relative importance
• Priorities problems based on its relative importance
• Risk assessment technique from activity level to system
level

10. PARETO DIAGRAM

11. Tool 5: STRATIFICATION
ANALYSIS
• Analysis of data by grouping it in different
ways
• Segregating a group of measurements,
observations or any data into several sub-
groups on the basics of certain characteristics
• These stratified data are used for identifying
the influencing factors
• Simple and very effective QC tool for
improving the quality

12. STRATIFICATION ANALYSIS

13. Tool 6: SCATTER DIAGRAM
• Graphical device to depict the relationship between two
variables
• Horizontal axis – cause
• Vertical axis – effect
• Diagram displays the paired data as a cloud of points
• Density and direction of the cloud indicate how the two
variables influence each other
• Displays what happens to one variable when another
variable is changed
• Used to understand why particular variations occurs
and how they can be controlled

14. SCATTER DIAGRAM

15. Tool 7: CONTROL CHART
• Most widely used tool in statistical process control (SPC)
• Graph that displays data taken over time and the variations of this
data
• It illustrates the dynamic performance (performance over time) of
the process
• Based on a series of random samples taken at regular intervals
• It contains three horizontal lines that remains constant over time:
– A center
– A lower control limit (LCL)
– An upper control limit (UCL)
• If a point lies inside UCL and LCL then the process is in control
• If the point lies outside UCL and LCL then the process is out of
control

16. CONTROL CHART

17. TYPES OF CONTROL CHARTS
• Control charts for variables - for measurable
data such as time, length, temperature, weight,
pressure, etc.
• Control charts for characteristics - for
quantifying data such as number of defects,
typing errors in a report, etc.

18. NEW SEVEN MANAGEMENT
TOOLS
• Affinity (KJ) diagram
• Relationship diagram
• Tree diagram
• Matrix diagram
• Decision tree (PDPC)
• Arrow diagram (PERT)
• Matrix data analysis

19. Tool 1: AFFINITY DIAGRAM
• A tool to collect a large amount of verbal expressions
and organize them in groups according to natural
relationship between individual items
• Also known as KJ diagram
• Special type of brainstorming tool
• Provide a visual representation of large amount of ideas
• Used to extract large amount of useful information
from few or scattered data or from unrelated ideas
• Used to understand and organize problems that are not
clear

20. AFFINITY DIAGRAM

21. Tool 2: RELATIONSHIP
DIAGRAM
• Tool for finding causes to a problem
• Same as cause and effect diagram
• Not only clarifies the relationship between cause
and effect but also between various causes
• Graphical representation of all factors in a
complicated problem, system or situation
• Used to identify key problem from a list of
important problems, identify the root cause of
existing problems and identify key factors needed
to make a decision

22. RELATIONSHIP DIAGRAM

23. Tool 3: TREE DIAGRAM
• Systematically breaks down a topic into its
components elements and shows the logical
and sequential links between these elements
• Systematically outlines the complete spectrum
of paths and tasks that must be carried out to
achieve a goal
• Used to develop a systematic, step by step,
strategy to achieve an objective

24. TREE DIAGRAM

25. Tool 4: MATRIX DIAGRAM
• Systematically organize information that must
be compared on a variety of characteristics in
order to make a comparison, selection or
choice
• It depicts the relationship between two sets of
factors in the form of a table or a matrix
• Also known as quality table and it is the
starting point in building a house of quality

26. MATRIX DIAGRAM

27. Tool 5: PROCESS DECISION
PROGRAME CHART (PDPC)
• Also known as decision tree
• Planning tool to outline every conceivable and likely
occurrence in any planning
• 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
• Helps to anticipate undesirable occurrences and enables
one to prepare with plans to neutralize their effect
• Used in new product development, building and
equipment and data processing programs
• Used in decision making when the task is new, complex
and unique

28. DECISION TREE

29. Tool 6: ARROW DIAGRAM
• It is a graphical description of the sequential steps
that must be completed before a project can be
completed
• PERT (Program Evaluation and Review
Technique) and CPM (Critical Path Method)
charts are the best known arrow diagram
• Planning tool that determines the critical path of a
process or a project
• Indispensible for long term projects such as the
construction of a plant or the development of new
products

30. ARROW DIAGRAM

31. Tool 7: MATRIX DATAANALYSIS
DIAGRAM
• Very much similar to a matrix diagram
• A difference is that numerical data is used instead
of symbols indicating the existence and strength
of relationship
• Only tool among the New Seven Management
Tools which uses numerical data and produces
numerical results
• Used in studying the parameters of production
processes, in analyzing market information, in
finding links between numerical and non
numerical variables

32. MATRIX DATAANALYSIS
DIAGRAM

33. SIX SIGMA (6σ)
• Six standard deviation from mean
• Improve the capability and reduce the defects in any process
• It strive for perfection
• It allows only 3.4 defects per million opportunities or
99.999666 % accuracy
• Here a defect can be anything like incorrect customer bill
• It improves the process performance, decrease variation and
maintains consistent quality of the process output.
• This leads to defect reduction and improvement in profits,
product quality and customer satisfaction
• It incorporates the basic principles and techniques used in
business, statistics and engineering
• Its objective is to achieve zero defects products

34. SIX SIGMA PROCESS
• Define
• Measure
• Analyse
• Improve
• Control
Though it is originated from manufacturing field,
now it is applied to non-manufacturing processes
only such as service, medical and insurance
procedures, call centers, etc.

35. BENCHMARKING
• “The process of identifying, understanding and
adapting practices and processes from
organisations anywhere in the world to an
organisation to improve its performances”
• Systematic method by which organization can
measure themselves against the best industry
practices
• The process of barrowing ideas and adapting
them to gain competitive advantage

36. REASONS TO BENCHMARKING
(OBJECTIVES)
• Aims at goal setting process to facilitate
comparison with the best
• Aims at motivating and simulating company
employees towards the goal of continuous
quality improvement
• Aims at external orientation of the company
• Aims at identifying a technological
breakthrough
• Aims at searching for industry best practices

37. TYPES OF BENCHMARKING
Based on the object to be Benchmarked
• Product benchmarking
• Performance benchmarking
• Process benchmarking
• Strategic benchmarking
Based on the organisations against whom one is
benchmarking
• Internal benchmarking
• Industry benchmarking
• Competitive benchmarking
• Best in class benchmarking
• Relationship benchmarking

38. BENCHMARKING PROCESS
• Planning - what is to be benchmarked? What
shall we compare? How will the data be
collected?
• Analysis – careful understanding of current
process practices as well as those of
benchmarking partners
• Integration – careful planning to incorporate new
practices in the operation
• Action
• Maturity – best industrial practices are
incorporated in all business processes

39. FAILURE MODE AND EFFECT
ANALYSIS (FMEA)
• It is a preventive measure to systematically
display the causes, effect, and possible actions
regarding observed failures
• It objective is to anticipate failures and prevent
them from occurring
• FMEA prioritises failures and attempts to
eliminate their causes
• Never ending process improvement tool

40. TYPES OF FMEA
• System FMEA
• Design FMEA
• Process FMEA
• Service FMEA
• Equipment FMEA
• Maintenance FMEA
• Concept FMEA
• Environment FMEA

41. STAGES OF FMEA
(METHODOLOGY)
• Specifying possibilities
• Quantifying risks
• Correcting high risk causes
• Re-evaluation of risk

42. FMEA PROCEDURE
• Identify failure modes (potential failure)
• Describe the potential failure effects(Result of failure
mode)
• Establish a numerical ranking for the severity (S) of the
effect
• Identify the potential causes/mechanisms of failure
• Enter the probability of occurrence (O) factor
• Determine the likelihood of detection (D)
• Review risk priority number (RPN = S × O × D )
• Determine recommended action