Top 9 Management Tools and Techniques

Continuous Improvements
By Prof. Raghavendran V

Proactive Improvements

By. Prof. Raghavendran V

2

There are some improvements that they wont use hard
data but rely on subjective information. Application
of these tools has proven useful in process
improvement, cost reduction, policy making &
deployment and New-Product Development.


3

The tools are very simple, it is effective and it can be
key to finding the root cause of a problem in specific
terms and then ask why.
You may have to ask why 2 or more times to obtain
root cause of the problem.


4

There are 9 different techniques involved and also called as
“Management tools Technique”. There are listed as follows:
1. Forced Field Analysis
2. Nominal Group Technique
3. Affinity Diagram
4. Interrelationship Digraph
5. Tree Diagram
6. Matrix Diagram
7. Prioritization Matrices
8. Process Decision Program Chart(PDPC)
9. Activity Network Diagram


Management Tools & Techniques

5

This analysis is used to identify the force & factors
that may influence the problem or goal.
 It helps an organization to better understand
promoting & inhibiting forces so that the positives
can be reinforced & the negatives can be reduced.
 The procedure is define the Objective, determine the
criteria for evaluating effectiveness of action


Forced Field Technique

6

For Illustration:
Objective: Stop Smoking


Promoting Forces to stop smoking

Inhibiting forces to cant stop
Smoking

Poor Health

Habit

Smelly Clothing

Addiction

Cost

Taste

Impact on others

Advertisement

Setting an Example

Stress

The Benefit are the determination of the positives and
negatives, encouraging people to prioritize the competing
forces and identify root causes.

Forced Field Technique

7

This provides for issue/idea input from everyone on
the team and for effective decisions.
For Example: Indian cricket team decides which
problem to work on. All players write down on the
papers the problems they think is most important.
Ranking is consider to evaluate the problem. The
highest number is consider as most important
problem.


Nominal Group Technique

8

This diagram allows the team to creatively generate
large number of issues/ideas and logically group
them for problem understanding and possible
breakthrough solutions.
 The procedure is to state the issues in a full
sentences, brain storm.
(large group must be divided into small groups with
appropriate headings)


Affinity Diagram

9

For Illustration for scrambled idea:
Fatigue Pitch
What are issues involved in losing the
world cup for England
Ambience of the crowd
Big Grounds

Not enough
experience
players

No form
players

Fear of Terrorism

Spin Tracks
No seriousness in
playing

Affinity Diagram

10

For Illustration for Ordered idea:
What are issues involved in losing the
world cup for England
About Technical
aspects
Fatigue Pitch

Not enough experience
players

Big Grounds

No seriousness in playing

Spin Tracks

No form players

Ambience of the crowd

Fear of Terrorism
About Public Factors

About Players

Affinity Diagram

11

The Interrelationship Diagraph clarifies the inter
relationship of many factors of a complex situation.
It allows to team to classify the cause & effect
relationships among the all the factors.
 The procedure is complicated & as follows
1. The team should agree on the issue or problem
statement.
2. All the ideas or issues must be laid out


Interrelationship Diagraph(ID)

12

3.
4.
5.

6.

Start with first issue & evaluate with the other issue
using cause-effect relationship.
The second iteration is to compare second issue with
other issue and followed by.
The entire diagram should be reviewed where
necessary. It is good idea to obtain information from
others people Upstream or Downstream.
The diagram is completed by tallying the incoming &
outgoing arrows and placing this information below the
box.


13

Benefits of Interrelationship Diagraph(ID)
 It allows a team to identify root causes from
subjective data systematically.
 Cause and effect relationships
 Encourage members to think in multidirectional
 Develops team harmony and effectiveness.



14

This tool is used to reduced any broad objective into
increasing levels in detail in order to achieve
objective.
 Procedure to choose action oriented objective
statement.
 Secondly, brainstorming, choose the major headings
 Thirdly, generate the next level analyzing the major
heading.


Tree Diagram

15

Here diagram allows individuals or teams to identify,
analyze and rate the relationship among two or more
variable.
 Data are presented in table form and can be objective
or subjective, which can be given symbols with or
without numerical values.
 There are different formats 2 or variables
L-shaped (2V), T or C or Y-shaped(3V) and X Shaped
(4V).


Matrix Diagram

16



For Illustration:

Tool/ Use

Creativity

Affinity

Analysis

o

Consensus

Action

o

ID

o

Tree
Diagram




o

Prioritization
Matrix

Matrix
Diagram









o Always
 Frequently

Occasionally

18

These tools prioritize issues, tasks, characteristics,
and based on weighted criteria using combination of
tree and matrix diagram techniques.
 Prioritization matrices are designed to reduce the
teams options rationally before detailed
implementation planning occurs.


Prioritization Matrices

19








Construct an L-shaped matrix combing the options
Determine implementation criteria Nominal Group
technique.
Prioritize the criteria using NGT, each member
weights the criteria so that total weights equal to 1.00
Rank order the options in terms of importance by
each criterion
Compute the option importance score

Construction of Prioritization Matrices

20



Programs to achieve particular objectives do not
always go according to plan, and unexpected
developments may have serious consequences. The
PDPC avoids surprises and identifies possible
countermeasures.

Process Decision Program Chart

21

Plan successful conferences

Registration

Speakers Late



Audio/Visual
Fails
Have
Backup

Have Substitute

Facilities

Presentations

Too Long

Use AV
Person

Use Time
Keeper


PDPC

22

This tool goes by a number of different names and
deviations, such as program evaluation and review
technique, Critical Path Method, arrow diagram and
activity on node.
 It allows team to schedule a project efficiently.


Activity Network Diagram

23

1)
2)
3)
4)
5)

6)

The team brainstorm/document all the tasks to
complete project.
The first task is always started from extreme left.
Any tasks that can be done simultaneously.
Repeat step 2 & 3 until all tasks are placed
Number each task & draw connecting arrows.
Determine the completion time and post it in the lower
left box. Completion times recorded in
hours/days/weeks
Determine the critical path by completing the four
remaining boxes in each task. These boxes are Earliest
start time(ES), Earliest Finish(EF), Latest Start(LS) and
latest Finish (LF).


24

Reactive Improvements


25

Reactive Improvements is also known as Statistical
Process Control. This is one of the best technical
tools for improving product and service quality.
There are seven basic technique and they are:
1. Pareto diagram
2. Process flow diagram
Some what Statistical
3. Cause and effect diagram
4. Check sheets
5. Graphs- Histogram, Line graphs, Pie charts
6. Scatter diagram
7. Control Charts



26

Alfred Pareto conducted extensive studies of the
distribution of wealth in Europe.
Pareto diagram is a graph of that ranks data
classification in descending order of their numerical
value of their frequency of occurrence from left to
right in accordance with the variables.
Variables are problems, complaints, causes, type of non
conformities.


Pareto Diagram

27

Pareto Diagram Concepts:
50
45
40
35
30
25
20
15
10
5
0

Series 1
Series 2
Series 3
Series 4

Category of data

Pareto Diagram

28









Determine the method of classifying the data
(Problem, cause, non conformity and so forth)
Decide if rupees, frequency or both are to be used to
rank the characteristics.
Collect data for an appropriate time interval or use
historical data.
Summarize the data and rank order categories from
largest to smallest.
Construct the diagram and find the vital few.

Construction of Pareto diagram

29

Solve the problem:
In an recent 1st internal assessment conducted for 7th
mechanical students, the following result declared for
48 students
0-14 marks: 31 Students
15-20 marks: 13 Students
21-25 marks: 04 Students.
Categorize them using Pareto Diagram.


30

35

31

30
25
20
15

0-14
15-20
21-25

13

65%

10
4

5
27%
0

08%

Students marks

Pareto Diagram

31

It shows different activities of a process
operation, for a product or services as it moves
through the various processing operations.
 The diagram makes it easy to visualize the entire
system, identify potential trouble spots and locate
control activities.


Process Flow Diagram

32



For Illustration: let us consider vehicle parking
operation in a bus terminus.
Customer gets the tkt for Parking
Receive tkt from the customer

Customers parks the car
Stamp the exit time on ticket
Customers comes back to parking lot
to leave

Read difference time and
collect the time
Customers drives the car to exit

Put the tkt in Storage Bin
Cashier System

Customer Drives the car

Process Flow Diagram
End of the day complete report

Owner of the parking By. Prof. Raghavendran V
lot gets the
accounting report

33

A C&E diagram is a picture composed of lines and
symbols designed to represent meaningful
relationship between effect and causes.
 It was developed by Dr. Kaoru Ishikawa 1943 and it
is referred as fishbone diagram because of it shape.


Cause and Effect Diagram

34

Causes
People
Materials

Work Methods

Quality Characteristics

Effect
Environment

Equipment

Measurement

Cause and Effect Diagram

35

The main purpose of check sheets is to ensure that
the data is collected carefully and accurately by
operating personnel.
 Data should be collected in such a way that it can
quickly and easily used and analyzed.
 For Illustration: Check sheet for paint
nonconformities


Check Sheets

36

Check Sheet
Product: Bicycle 32
Nonconformity Type

Check

Number inspected: 2222
Total

Blister

21

Light Spray

38

Drips

22

Overspray

11

Runs

47

Others

5
Total

144

Number
113
Non Conforming

Check Sheets

37

Arguably the first „Statistical‟ technique.
It describe the variation in the process.
The histogram graphically estimates the process
capability.
 For any histogram there will graphical and analytical
techniques for summarization.




Graphical technique is a plot or picture of a frequency
distribution, which is a summarization of how the
data points occur within each subdivision of
observed values.

Histogram

38

Analytical technique, summarize data by computing
measure of the central tendency (Average, Median,
Mode)and measure of the dispersion ( Range and
standard Deviation).
Illustration for Ungrouped data:
Number of daily accounting errors.
0

3

0

1

0

1

0

1

5

4

1

2

1

2

0

1

0

2

0

0

2

0

1

2

1

1

1

2

1

1

0

Histogram

1

4

1

3

1

1

1

1

3

4

0

0

0

0

1

3

0

1

2

2

3


39



Tally of number of daily accounting errors
Number
Nonconforming

Tabulation

Frequency

0

15

1

20

2

8

3

5

4

3

5

1


40



Illustration for Grouped data:

Cell
Interval

40
F
re
q
u
e
n
c
y

34

35

Boundary

30
25

24

22
Series 1
Series 2
Series 3

20
15
10
5

Mid Point

0
Temperature

Histogram

41

There are 6 different types of histogram
And they are
1. Symmetrical
2. Skewed right
3. Skewed left
4. Peaked
5. Flat
6. Bimodal


Histogram

42

This is simplest way to determine, if a C&E
relationship exists between two variables.
For Illustrations: in a relationship between automotive
speed and mileage.
As speed increases, mileage decreases.
Automotive Speed is plotted on the axis and is the
independent variable.
Gas mileage is plotted on y axis and this is dependent
variable.


Scatter Diagram

43

Y-Values

M
i
l
e
a
g
e
/
l
t
r

45
40
35
30
25
20
15
10
5
0

Y-Values

Speed –Mi/hour

0

20

40

60

80

100

Scatter Diagram

44

Other examples for relationship are:
 Cutting speed and tool life
 Temperature and Lipstick hardness
 Training and errors
 Breakdowns and equipment age


Scatter Diagram

45

A control chart is a graphical representation of
collected information and common tool used in
industries in controlling the quality of products or
quality characteristics.
 It is an aid for analyzing the quality in repetitive
process.
 It is developed by Dr. W.A Shewhart


Control Charts

46

 Control charts is classified into types and
1. Variable (Continuous Data)
2. Discrete Data (Discontinuous Data)

they are:

Variable: Data which can take any value depending on
the accuracy of the measuring instrument is called
continuous data.
For Ex: Weight of Object can be 1.2 or 1.23 or 1.234
Kg Depends on the accuracy of the instrument.

Control Charts

47

Discrete: Data which can take only definite is called
discrete data. The values are whole number.
It will be only whole number. For ex: Number of
wickets took by bowler.


48

It is common phenomenon, in nature and also in the
product produced in industry. There will be lot of
variations on so many factors in a twin children.
 It is impossible to produce identical parts.
Henceforth, tolerance limits came in picture.
Variations are due to 2 causes:
1.
Variation due to chance causes
2.
Variation due to assignable causes.


Variables

49

Variation due to chance causes
The variations due to sheer chance. This is not
permanent factor for variation.
For Ex: Voltage Variation, Vibrations on Machine tool.(
It is difficult to avoid the variation)
2. Variation due to assignable causes
Variations caused by assigned job. These are easily
traceable.
For Ex: Difference among the M/c‟s, Men, materials
1.

Variables

50



Based on data, we have:

Control Charts for Continuous Data
or Variable
2. Control Charts for Discrete Data or
Attributes
1.

Variable

51

The data collected for control charts for variable will
be measured in two types and they are:
Mean and Range charts also called
R Charts
 Mean and Standard Deviation also called
Charts.


Mean is most common method of measure of central tendency.
R and are most common method to measure of dispersion.

Control Charts for Continuous Data or
Variable

52

Procedure for drawing Charts:
1. Collect good number of samples of constant
sample size „n‟ at random at different intervals of
time.
2. Measure all the quality characteristics of all which
is to be controlled of all the pieces in the sample
and of all the samples and record the same in
tables.
3. Find the mean of the all the samples.
4. Find the mean of the mean .

Mean and Range charts

53

Find the range of the samples
6. Find the mean of the range of all samples.
7. Compute the trial control limits or 3 control
limits or control for X and R as follows:
Control limits for X chart:
CLX= X± 3 X = X ± A2R
5.


54

Control for R Chart:
UCLR=D4R
LCLR=D3R
Where A2, D3, D4 are factors obtained from Table
B, factors for controlling limits.
8. Draw X and R Charts


55

Poka-Yoke
POKA-YOKE
MEANS
ZERO DEFECTS

56

Poka-Yoke
This is known as „MISTAKE-PROOFING‟
From Japanese:
Yokeru (avoid) & Poka (inadvertent errors)
Characteristics of Poka-Yoke




Eliminates the cause of an error at the source;
Detects an error as it is being made;
Detects an error soon after it has been made
but before it reaches the next operation.

Prof. Raghavendran V

57

Poka-Yoke
There are two approaches to dealing with errors:
1. ERRORS ARE INEVITABLE!
 People always make mistakes.
 While we accept the mistakes as natural, we
blame the people who make them.
 With this attitude, we are likely to overlook
defects as they occur in production.
 They may be detected at final inspection, or
worse still, by the customer.

58

Poka-Yoke
2. ERRORS CAN BE ELIMINATED!
 Any

kind of mistake people make can be
reduced or even eliminated.
 People make fewer mistakes if they are
supported by proper training and by a
production system based on the principle that
errors can be avoided.

One method of detecting errors is inspection.

59

Poka-Yoke
There are two major types of inspection.
1. SAMPLING INSPECTION.
In some factories, the attitude is:



“It may take all day to inspect all product”.
“There may be a few defects, but sampling is
the most practical way to check”.


60

Poka-Yoke
2. 100% INSPECTION.
In the best factories, the attitude is:




“We won‟t tolerate a single defect!”
“We will organize production so that 100% of
the product can be easily inspected”.
“That makes the most sense”.


61







100% Inspection - Reflection
Think about 100% inspection.
Even one defective product is enough to
destroy a customer‟s confidence in a
company.
To stay competitive a company must supply
good product in thousands.
The best way to achieve this is to organize
production to inspect 100% of the products.

62

Two Strategies for Zero Defects

1. DON’T MAKE IT!
 Don’t make product you don’t need.
 The more you make, the greater the
opportunity for defects.
 Follow ‘just-in-time’ principles by only
making what is needed, when it is
needed in the amount needed.
63

Two Strategies for Zero Defects
2. Build Safeguards
 The user is an expert in finding defects.
 Therefore build safeguards into the
production process.
 Quality can be built into products by
implementation of Poka-Yoke.


64

Poka-Yoke Devices

 Human errors are usually inadvertent.
 Poka-yoke devices help us avoid

defects, even when inadvertent errors
are made.
 Poka-yoke helps build quality into
processes.

65

It is invented by Dr. Mizuno, professor of Tokyo institute
of technology. It is planning tool which can be applied to
any organization to fulfill customer expectations.
It focuses on customers expectations or need, often
referred to as customer‟s voice. It is team based tool in
which customer needs are the driving force for the
product development process. Conflicting needs are
identified early in QFD Process and can be resolved
before production.

Quality functional deployment

66

A systematic method for transferring
customer wants/needs/expectations into
product and process characteristics

Quality Function Deployment

QUALITY FUNCTION DEPLOYMENT


Quality Function Deployment

 Voice of the customer
 House of Quality

QFD: An approach that integrates the “voice of the
customer” into the product and service
development process.

QFD employed to translate customers expectations, in
terms of specific requirements, into directions &
actions, in terms of engineering or technical
characteristics, that can be employed through:
 Product Planning
 Part Development
 Process Planning
 Production Planning
 Services

Quality Functional deployment

69



There are two types of teams
1. One is existing team with fewer members
2. Other team composed of
marketing, design, quality, finance and product.

QFD Team

70



Improves customer satisfaction
◦
◦
◦
◦



Focus on requirement
competitive information
prioritizes resources
Identifies items that can be acted upon

Reduces implementation time
◦
◦
◦
◦

Decrease midstream design changes
Limits production problems
Avoid future redundancies
Identifies future application opportunities

Benefits of qfd

71



Promotes team work
◦
◦
◦
◦



Based on consensus
Creates communication at surfaces
Identifies actions at interfaces
Create global views of details

Provides documentation
◦
◦
◦
◦

Documents rationale for design
Is easy to assimilate
Adapts to changes
Provides framework to sensitivity analysis

Benefits of qfd

72

The primary planning tool used in QFD is the House
Of Quality.
HoQ translates voice of customers into design
requirements that meet specific targets.
Managers and Engineers consider the house of quality
to be primary chart in quality planning


House of quality

73

The exterior walls of the house are the customer
requirements. On the left side is a listing of the
voice of customer. On right side are prioritized
customer requirements.
2) The ceiling shows technical
descriptors, consistency of the product is provided
by engineering characteristics, design constraints
and parameters.
1)

House of quality’s part description:

74

The interior walls are relationship between customer
requirements and technical descriptors. Customers
expectations (requirements) are translated into
engineering characteristics (technical descriptors).
4) The roof is the interrelationship between the technical
descriptors.
5) The foundation or base is known as prioritized
technical descriptors.
3)

House of quality’s part description:

75

House of quality
Relationship B/W
technical descriptors

Technical
Descriptors

customer
needs

Prioritized
Customer
Needs
relationships
between
customer
needs and
engineering
metrics

Prioritized Technical
descriptors

Module 7 Completed
Prof. Raghavendran Venugopal


77

Top 9 Management Tools and Techniques

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