New seven management tools

NEW 7 MANAGEMENTNEW 7 MANAGEMENT
TOOLSTOOLS
By,By,
Date:Date:

AGENDAAGENDA
WHY THE NEW SET OF TOOLSWHY THE NEW SET OF TOOLS
LIST OF TOOLSLIST OF TOOLS
INDIVIDUAL TOOLSINDIVIDUAL TOOLS
EXAMPLESEXAMPLES

WHY THE NEW SET OF TOOLSWHY THE NEW SET OF TOOLS
To structure the brainstorming processTo structure the brainstorming process
SimplifySimplify
Remove fearRemove fear
To help create a comfort fit (minimalTo help create a comfort fit (minimal
dependence on statistics)dependence on statistics)
Improve penetrationImprove penetration
Increase applicationIncrease application

LIST OF TOOLSLIST OF TOOLS
Affinity DiagramAffinity Diagram
Interrelationship diagraphInterrelationship diagraph
Tree DiagramTree Diagram
Matrix DiagramsMatrix Diagrams
Matrix AnalysisMatrix Analysis
PDPC, process decision program chartsPDPC, process decision program charts
Arrow diagramsArrow diagrams

AFFINITY DIAGRAMAFFINITY DIAGRAM
DefinitionDefinition
An Affinity Diagram is a special type ofAn Affinity Diagram is a special type of
brainstorming process that is used forbrainstorming process that is used for
organising large groups of information intoorganising large groups of information into
meaningful categories. It helps us to clarifymeaningful categories. It helps us to clarify
and make sense of a large or complexand make sense of a large or complex
problemproblem
http://www.tin.nhs.uk/index.asp?pgid=1129

ProcessProcess
Record each idea on cards or notesRecord each idea on cards or notes
Look for ideas that seem to be relatedLook for ideas that seem to be related
Sort cards into groups until all cards haveSort cards into groups until all cards have
been used.been used.
http://en.wikipedia.org/wiki/Affinity_diagram

ExampleExample
How to implement a process of continualHow to implement a process of continual
improvement throughout theimprovement throughout the
organisation? Which causes of waitingorganisation? Which causes of waiting
time in the hospital should we be workingtime in the hospital should we be working
on?on?
http://www.tin.nhs.uk/index.asp?pgid=1129<

ExampleExample

INTER RELATIONSHIPINTER RELATIONSHIP
DIAGRAPHDIAGRAPH
This tool displays all the interrelatedThis tool displays all the interrelated
cause-and-effect relationships andcause-and-effect relationships and
factors involved in a complexfactors involved in a complex
problem and describes desiredproblem and describes desired
outcomes. The process of creatingoutcomes. The process of creating
an interrelationship diagraph helps aan interrelationship diagraph helps a
group analyze the natural linksgroup analyze the natural links
between different aspects of abetween different aspects of a
complex situation.complex situation.
``
http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

DIAGRAPHDIAGRAPH
ProcessProcess
Agree on the issue or question.Agree on the issue or question.
Add a symbol to the diagram for every element involved in theAdd a symbol to the diagram for every element involved in the
issue.issue.
Compare each element to all others. Use an "influence" arrow toCompare each element to all others. Use an "influence" arrow to
connect related elements.connect related elements.
The arrows should be drawn from the element that influences toThe arrows should be drawn from the element that influences to
the one influenced.the one influenced.
If two elements influence each other, the arrow should be drawn toIf two elements influence each other, the arrow should be drawn to
reflect the stronger influence.reflect the stronger influence.
Count the arrows.Count the arrows.
The elements with the most outgoing arrows will be root causes orThe elements with the most outgoing arrows will be root causes or
drivers.drivers.
The ones with the most incoming arrows will be key outcomes orThe ones with the most incoming arrows will be key outcomes or
results.results.
``
http://www.skymark.com/resources/tools/relations_diagram.asp

DIAGRAPHDIAGRAPH
ExampleExample
The quality issue is the potential causes or factorsThe quality issue is the potential causes or factors
contributing to late deliveries.contributing to late deliveries.
http://www4.asq.org/blogs/statistics/2008/07/interrelationship_digraph_exam.html

DIAGRAPHDIAGRAPH
ExampleExample

DIAGRAPHDIAGRAPH
ExampleExample
The inference is that Potential causes for late delivery are:The inference is that Potential causes for late delivery are:
‘‘Poor scheduling practices’ (6 outgoing arrows),Poor scheduling practices’ (6 outgoing arrows),
‘‘Late order from customer’ (5 outgoing arrows), andLate order from customer’ (5 outgoing arrows), and
‘‘Equipment breakdown (3 outgoing arrows).Equipment breakdown (3 outgoing arrows).

TREE DIAGRAMTREE DIAGRAM
This tool is used to break down broad categories intoThis tool is used to break down broad categories into
finer and finer levels of detail. It can map levels offiner and finer levels of detail. It can map levels of
details of tasks that are required to accomplish adetails of tasks that are required to accomplish a
goal or task. It can be used to break down broadgoal or task. It can be used to break down broad
general subjects into finer and finer levels of detail.general subjects into finer and finer levels of detail.
Developing the tree diagram helps one move theirDeveloping the tree diagram helps one move their
thinking from generalities to specifics.thinking from generalities to specifics.

This tool is used to break down broadThis tool is used to break down broad
categories into finer and finer levelscategories into finer and finer levels
of detail. It can map levels of detailsof detail. It can map levels of details
of tasks that are required toof tasks that are required to
accomplish a goal or task. It can beaccomplish a goal or task. It can be
used to break down broad generalused to break down broad general
subjects into finer and finer levels ofsubjects into finer and finer levels of
detail. Developing the tree diagramdetail. Developing the tree diagram
helps one move their thinking fromhelps one move their thinking from
generalities to specifics.generalities to specifics.

ProcessProcess
Develop a statement of the goalDevelop a statement of the goal
Ask a question that will lead you to the next level of detail.Ask a question that will lead you to the next level of detail.
Brainstorm all possible answers. Write each idea in a line below.Brainstorm all possible answers. Write each idea in a line below.
Show links between the tiers with arrows.Show links between the tiers with arrows.
Do a “necessary and sufficient” check. Are all the items at thisDo a “necessary and sufficient” check. Are all the items at this
level necessary for the one on the level above?level necessary for the one on the level above?
Each of the new idea statements now becomes the subject: aEach of the new idea statements now becomes the subject: a
goal, objective or problem statement.goal, objective or problem statement.
Continue to turn each new idea into a subject statement and askContinue to turn each new idea into a subject statement and ask
the question, till you reach a root causethe question, till you reach a root cause
Do a “necessary and sufficient” check of the entire diagram. AreDo a “necessary and sufficient” check of the entire diagram. Are
all the items necessary for the objective?all the items necessary for the objective?
http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/tree-diagram.html

ExampleExample
The Pearl River, NY School District, a 2001 recipient of the MalcolmThe Pearl River, NY School District, a 2001 recipient of the Malcolm
Baldrige National Quality Award, uses a tree diagram toBaldrige National Quality Award, uses a tree diagram to
communicate how district-wide goals are translated into sub-communicate how district-wide goals are translated into sub-
goals and individual projects. They call this connected approachgoals and individual projects. They call this connected approach
“The Golden Thread.”“The Golden Thread.”
The district has three fundamental goals. The first, to improveThe district has three fundamental goals. The first, to improve
academic performance, is partly shown in the figure below.academic performance, is partly shown in the figure below.
District leaders have identified two strategic objectives that,District leaders have identified two strategic objectives that,
when accomplished, will lead to improved academicwhen accomplished, will lead to improved academic
performance: academic achievement and college admissions.performance: academic achievement and college admissions.

ExampleExample

ExampleExample
Lag indicators are long-term and results-oriented. The lag indicator for
academic achievement is Regents’ diploma rate: the percent of
students receiving a state diploma by passing eight Regents’ exams.
Lead indicators are short-term and process-oriented. Starting in 2000,
the lead indicator for the Regents’ diploma rate was performance on
new fourth and eighth grade state tests.
Finally, annual projects are defined, based on cause-and-effect
analysis, that will improve performance. In 2000–2001, four projects
were accomplished to improve academic achievement.

MATRIX DIAGRAMMATRIX DIAGRAM
This tool shows the relationship betweenThis tool shows the relationship between
items. At each intersection a relationshipitems. At each intersection a relationship
is either absent or present. It then givesis either absent or present. It then gives
information about the relationship, suchinformation about the relationship, such
as its strength, the roles played byas its strength, the roles played by
various individuals or measurements. Sixvarious individuals or measurements. Six
differently shaped matrices are possible:differently shaped matrices are possible:
L, T, Y, X, C, R and roof-shaped,L, T, Y, X, C, R and roof-shaped,
depending on how many groups must bedepending on how many groups must be
compared.compared.

ExampleExample
http://www.qualityamerica.com/QAProducts/images/ProjectSelection.jpg

ExampleExample
A personnel department wanted to improve social activity within the company in order
to increase loyalty levels. A theory was put forwards that soft-skills training contributed
significantly towards this in-house socializing. The personnel manager consequently
decided to use a Matrix Diagram to investigate this. The steps taken were:
Objective: Investigate effect of soft-skills training on social activity.
Matrix: T-matrix, with people on main stem, in-house training courses to left,
attendance of social clubs to right, plus an extra column for years of service.
Comparison: In-house training - tick for attendance within last three years; social
clubs - three bands corresponding to under 30%, 30% to 70% and over 70%
attendance in the same period.
http://syque.com/quality_tools/toolbook/Matrix/example.htm

ExampleExample

ExampleExample
The resultant matrix, showed that people with higher levels of
social training also tended to be more committed members of
social clubs. It was also noticed that there seemed to be a
particular increase in commitment after going on the team-building
course. The length of service showed no particular pattern.
As a result, the training was expanded, and people were given
more encouragement to attend (particularly the team-building
course). This resulted in a steady increase in social activity and a
reduction in attrition rates.

PRIORITISATION MATRIXPRIORITISATION MATRIX
This tool is used to prioritize items and
describe them in terms of weighted
criteria. It uses a combination of tree and
matrix diagramming techniques to do a
pair-wise evaluation of items and to
narrow down options to the most desired
or most effective.

ExampleExample
Problem
To identify the most important factors effecting motivation in
a team

ExampleExample

ExampleExample
Pay and work overload, as the highest scoring motivational
problems, were selected for carrying forward for further
investigation. As a result of consequent work in the project,
the pay structure for certain grades was revised and training
on job scheduling was introduced. In the following year, the
survey improved in these areas by 2 and 3 points,
respectively.

PDPCPDPC
A useful way of planning is to break down tasks
into a hierarchy, using a Tree Diagram. The
PDPC extends the tree diagram a couple of
levels to identify risks and countermeasures for
the bottom level tasks. Different shaped boxes
are used to highlight risks and identify possible
countermeasures (often shown as 'clouds' to
indicate their uncertain nature). The PDPC is
similar to the
Failure Modes and Effects Analysis (FMEA) in
that both identify risks, consequences of failure,
and contingency actions; the FMEA also rates
relative risk levels for each potential failure
point.

ProcessProcess
PDPCPDPC
From the bottom level of some activity box, the PDPC
adds levels for:
•identifying what can go wrong (failure mode or risks)
•consequences of that failure (effect or consequence)
•possible countermeasures (risk mitigation action plan)
http://en.wikipedia.org/wiki/Process_Decision_Program_Chart

ExampleExample
PDPCPDPC
A dress production team at a clothes manufacturer was
improving the cutting-out process in order to minimize
material wastage. They decided to use PDPC on the work
breakdown structure to identify potential problems and ways
of avoiding them.
As the most expensive element is the material itself, they
defined a significant risk as, 'Anything that might cause the
cut cloth to be ruined', and viable countermeasures as,
'Anything that will reduce the risk, and which costs less than
100 pieces of cloth' .
http://syque.com/quality_tools/toolbook/PDPC/example.htm

ExampleExample
PDPCPDPC

ExampleExample
PDPCPDPC
As a result of this, the cutting was tested on cheaper
material, resulting in the material clamp being redesigned to
prevent drag, a start notch provided for the cutter and the
general area being inspected for sharp corners to minimize
snag problems. The cutting operator was involved in the
PDPC process and the subsequent tests, resulting in her fully
understanding the process. The final cutting process
thereafter ran very smoothly with very little error.

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM
This tool is used to plan the appropriate sequence
or schedule for a set of tasks and related
subtasks. It is used when subtasks must occur in
parallel. The diagram enables one to determine
the critical path (longest sequence of tasks). (See
also PERT diagram.)
Two Types
•Arrow on Node
•Arrow on Arrow

ProcessProcess
Drawing the Network
List all the necessary tasks in the project or process. One convenient
method is to write each task on the top half of a card or sticky note. Across
the middle of the card, draw a horizontal arrow pointing right.
Determine the correct sequence of the tasks. Do this by asking three
questions for each task:
Which tasks must happen before this one can begin?
Which tasks can be done at the same time as this one?
Which tasks should happen immediately after this one?
It can be useful to create a table with four columns —prior tasks, this task,
simultaneous tasks, following tasks.
http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/arrow-diagram.html

ProcessProcess
Diagram the network of tasks. If you are using notes or cards,
arrange them in sequence on a large piece of paper. Time
should flow from left to right and concurrent tasks should be
vertically aligned. Leave space between the cards.
Between each two tasks, draw circles for “events.” An event
marks the beginning or end of a task. Thus, events are nodes
that separate tasks.

ProcessProcess
Look for three common problem situations and redraw them
using “dummies” or extra events. A dummy is an arrow drawn
with dotted lines used to separate tasks that would otherwise
start and stop with the same events or to show logical
sequence. Dummies are not real tasks.

ProcessProcess
In the activity on arrow (AOA) diagram each
activity is represented by an arrow connecting two
circles (nodes)
The nodes represent transitions between activities –
referred to as events
The duration of an activity is written by the arrow
representing it.
Example shows activity (A), the duration of which is
four days, between events 1 and 2.
PM Lecture/Network Analysis/CPM Slide 4/ Paul Forrester/University of Birmingham

Process AOAProcess AOA
Time is denoted on AOA diagrams in the top and bottom right-hand quadrants
of the nodes, thus:
Event
Number
Earliest Start (ES) Time for any
activity leaving event 3
Latest Finish (LS) Time for any
activity entering event 3 (without
putting the project as a whole behind
schedule)

ProcessProcess
In the activity on node (AON) diagram, each
activity is represented by a rectangular box – the
arrows merely indicate precedence.
AON networks do not need dummies to maintain
logic of precedence.
More information is normally included on the
AON diagram.
Most computer packages for project planning
and control tend to use AON notation.

Process AONProcess AON
AON notations do vary, but below is the most commonly used
Earliest
Start time Duration
Earliest
finish time
Latest
Start time
Total Float Latest
finish time
Activity Number and Activity
description
ES d EF
LS TF LF
Activity
Shorthand notation

ProcessProcess
First do a forward pass to note down the
duration and the Earliest finish and start times
Then a backward pass is done to fill in the
Latest finish, start and total float times

ExampleExample
D,E3F
E
D
C
B
A
Activity
B,C2
A3
A4
-7
-2
Immediate
Predecessors
Time (days)

ProcessProcess forward passforward pass
0 2 2
LS TF LF
A
0 7 7
LS TF LF
B
2 4 6
LS TF LF
C
2 3 5
LS TF LF
D
7 2 9
LS TF LF
E
9 3 12
LS TF LF
F

ProcessProcess backward passbackward pass
0 2 2
1 TF 3
A
0 7 7
0 TF 7
B
2 4 6
3 TF 7
C
2 3 5
6 TF 9
D
7 2 9
7 TF 9
E
9 3 12
9 TF 12
F

ProcessProcess float time and critical pathfloat time and critical path
0 2 2
1 1 3
A
0 7 7
0 0 7
B
2 4 6
3 1 7
C
2 3 5
6 4 9
D
7 2 9
7 0 9
E
9 3 12
9 0 12
F

Any tool is a weapon if you hold it right.
Ani DiFranco
Grammy award winner, Prolific artist and feminist

New seven management tools

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