Module 3 Session 1: 7 QC Tools

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 Objectives

By the end of the session, analysts should be able to:

Understand the usage and recognize the

value in each of the 7 QC Tools

Learn how to construct the tools using excel

Learn how to solve problems effectively using

a step-by-step process

Interpret and make accurate decisions using

the correct tools

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 Introduction to 7 QC Tools

Developed by Prof. Kaoru Ishikawa

Interpret the data fully and
Derive the maximum information from it.

Seven QC Tools are used to:

Analyze the organization process
Organize the collected data in a way that is easy to understand
and analyze
Identify major problems
Provide solutions to avoid future defects

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 7QC Tools always include:

1. Process Flow Chart

Activity (Hands-on)

2. Check Sheet
Activity (Hands-on)

3. Histogram
Activity (Hands-on)

4. Pareto Chart
Activity (Hands-on)

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 7 QC Tools: Process Flow

What is Process Mapping?

A hierarchical method for

displaying processes that
illustrates how a product or
transaction is processed

A visual representation of
the workflow

Used to identify problem

areas and opportunities for
process improvement.

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 7 QC Tools: Process Flow
Flowchart Symbols

Call Flow

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 7 QC Tools: Check Sheet

A check sheet is a sheet designed in

advance to allow easy collection and
aggregation of data.

A check sheet is also effective in

performing stratification
(categorization).

It is frequently used in daily business

operations, often not specifically for
QC purposes. Program Profile

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 7 QC Tools: Histogram

A basic graphing tool that displays the relative frequency or occurrence of

continuous data values showing which values occur most and least
frequently.

Histogram helps you and your team to:

Understand large amounts of data that are

difficult to interpret in tabular form

Provide useful information for predicting

future performance

Provide objective analysis of problems based

on facts and data

See how well a process performed and how

consistent it was
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 7 QC Tools: Histogram

Survey Distribution on Non-DPS Surveys

35

30

25

20

Frequency
15

10

0
1 4 7 9 12 15 18 20 23 26 29 31 34 More

Bin

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 7 QC Tools: Histogram

Method Usage Result

Used to assess actual Can identify the
conditions condition of
Histogram distribution (e.g.,
35
Used to find the whether there is an
30
location of the mean isolated, extreme
25
20 value or degree of value)
Freque ncy 15
variations in the graph
10
5
Can analyze a
0 Used to examine that process to identify a
Bin
the target quality is problem point that
maintained throughout needs to be improved
the process
Can find out the
scope of a defect by
inserting standard
values
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 7 QC Tools: Pareto

A Pareto diagram is a combination of bar and line graphs of accumulated data,

where data associated with a problem are divided into smaller groups by cause
or by phenomenon and sorted by the number of occurrences.

80% of problems usually stem from 20% of the causes.

Focus on the vital few, rather than the trivial many.

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 7 QC Tools: Pareto Chart

Pareto of Non-Sat Drivers Q2FY14

Hits cum%
250 120%

100%
200

80%
150
60%
100
40%

50
20%

0 0%

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 7 QC Tools: Pareto

Method Usage Result

Used to identify Biggest contributors
Pareto and prioritize a are identified
Hits cum% problem
Most significant
250 120%
Focus efforts on the
problems are
200
100%
vital few causes
80%
corrected first
150
60%
Used to review the
100
40%
effects of an action 80% of problems are
50
20%
taken addressed by fixing
0 0%
20% of causes

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 7 QC Tools: Cause & Effect

What is Cause & effect Diagram?

A cause and effect diagram is a fish-bone diagram that presents a
systematic representation of the relationship between the effect (result) and
affecting factors (causes).

When is it used and what results will be obtained?

A cause and effect diagram is
mainly used to study the
cause of a certain matter.

The use of a cause and effect

diagram allows clarification of
causal relation for efficient
problem solving.

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 7 QC Tools: Cause & Effect Diagram

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 7 QC Tools: Cause & Effect

Method Usage Result

Used when Can obtain a
Cause and Effect clarifying a cause clear overall
picture of causal
Diagram and effect
Machine Man relationship [Used relation (A change
during a phase to in the cause
Effect
analyze causes] triggers a variation
in the result.)
Used to develop
countermeasures Can list up all
Material Method
causes to identify
Cause (4Ms)
important causes
Result
(Controlled State) Can determine
the direction of
action
(countermeasure)

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 7 QC Tools: Scatter Diagram
A scatter diagram is used to examine the relationship between two, paired,
interrelated data types such as CSAT and Resolution. It provides a means to
find whether or not these two data types are interrelated, how they are related,
and how closely they are related.

Types of Relationship Degree of Relationship

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 7 QC Tools: Scatter Diagram

CSAT vs Resolution (Agent Level)

1240%

1040%

840%

640%

440%

240%

40%
40% 50% 60% 70% 80% 90% 100% 110%

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 7 QC Tools: Scatter Diagram

Method Usage Result

Study and identify the Can understand
Scatter Plot possible relationship the relationship
1240%
between the changes between two
observed in two results and
different sets of
establish
1040%

variables
840% countermeasures
Supply the data to based on it
640%
confirm a hypothesis
440% that two variables are
related
240%

Provide both a visual

40%
40% 50% 60% 70% 80% 90% 100% 110% and statistical means
to test the strength of
a potential
relationship
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 7 QC Tools: Control Chart & Graph

A control chart is used to

examine a process to see if it is
stable or to maintain the stability
of a process.
It is used to identify dots that are
outside the control limit, which
indicate some anomalies in a
process.

In addition, seven to eight consecutive dots showing values that are

below or above the mean (central) value, or an increasing or a
decreasing trend represented by seven to eight consecutive dots also
indicate a problem in a process.

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 7 QC Tools: Control Chart & Graph

Calculating Control Limits

To calculate control limits, we will need to find first the mean and
standard deviations of our data set. Then we will calculate the
upper and lower control limits.

1) Multiply the standard deviation by 3

2) Add the mean to the result this is the upper control limit
o UCL = CL + 3*S
3) Subtract the result of step 1 from the mean to get the lower
control limit
o LCL = CL - 3*S

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 7 QC Tools: Control Chart & Graph

Dispatch Process Control Chart

DPS Rate UCL CL LCL
25%

20%

15%

10%

5%

0%
41395 41402 41409 41416 41423 41430 41437 41444 41451 41458 41465 41472 41479

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 7 QC Tools: Control Chart & Graph

Method Usage Result

Used to observe Can judge the
Control Chart a change caused process if it is in
CE UCL CL LCL
by elapse of time its normal state
25% or if there are
20% Evaluate the some anomalies
15% effect of changes by examining
10% made to a process the dots plotted
5% on the chart
0% Separate
41402 41416 41430 41444 41458 41472 Enable process
41395 41409 41423 41437 41451 41465 41479 variation due to
improvement
special causes
from those due
to common
causes

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 7 QC Tools: Control Chart & Graph

A graph is a graphical representation of data, which allows a

person to understand the meaning of these data at a glance.
An effective means to monitor or judge the situation, allowing quick
and precise understanding of the current or actual situation.
A visual and summarized representation of data that need to be
quickly and precisely conveyed to others.

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 7 QC Tools: Graphs

Line Graph used to display trend over time

Program Quarterly FCR Scores

100
90 95
80
90
70
60
50
FCR Scores
40
30
20 27.4
20.4
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Quarter

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 7 QC Tools: Graphs

Bar Graph best for comparing multiple values

Quarterly FCR Scores by Region

43.9
4th Qtr 31.6
20.4

45
3rd Qtr 34.6
90 PH
Quarter NAM
46.9
2nd Qtr 38.6 LATAM
27.4

45.9
1st Qtr 30.6
20.4

0 10 20 30 40 50 60 70 80 90 100
FCR

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 7 QC Tools: Graphs

Column Chart used to compare values across

Clustered Column categories
is best used to show gap between categories

Quarterly FCR Scores by Region

PH NAM LATAM
100
90
90
80
70
60
50 45.9 46.9 45 43.9
FCR 38.6
40 34.6 31.6
30.6 27.4
30
20.4 20.4
20
10
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Quarter

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 7 QC Tools: Graphs

Stacked Column best used to show contribution relative to other categories

Quarterly FCR Scores by Region

180

160
45
140

120
34.6 LATAM
100
FCR 46.9 NAM
80
45.9 43.9 PH
60
38.6 90
40 30.6 31.6
20
20.4 27.4 20.4
0
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
Quarter

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 7 QC Tools: Graphs
100% Stacked Column compares the percentage that each value
contributes to a total across categories

CSAT Scores by Site

100%

90%

80%

70%
73.05% Top Box
60% 82.43% 78.48% 82.56% 80.47%
83.57%
Middle Box
50%
Bottom Box
40%

30%

20% 12.18%
8.56% 14.01% 9.69% 11.15%
10% 10.18%
14.77%
9.01% 6.25% 7.51% 7.76% 8.38%
0%
Beaverton Sergeant Bluff Cairo Dublin Cebu Shaw

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 7 QC Tools: Graphs

Pie graph displays the contribution of each value to a total

CSAT Level 1 Drivers

15%

Product
Process
20% People

65%

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 7 QC Tools: Graphs

Method Usage Result

120
100
80 Changes in a time- Can observe
60
40 sequential order changes in a time-
20
0 line graph sequential order,
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr
amounts, and ratios
100

80

60 PH A graph is the most

40 NAM Amounts bar graph frequently used tool
20 LATAM
0
to examine the
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr various matters
such as those listed
1st Qtr
on the left
2nd Qtr Ratios pie graph
3rd Qtr
4th Qtr

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 To sum up the 7 QC tools:

Process Flow To map out a step by step process

Check Sheet To record data in a comprehensive list
Histogram To see the distribution of data
Pareto Diagram To prioritize 20% of causes to fix 80% of issues
Cause and Effect Diagram To identify the cause and effect relationship
Scatter Diagram To identify the relationship between two
things
Control Chart/Graph To find anomalies and identify the current status

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Application of QC tools in Problem Solving

Graphs Check Process Pareto Cause & Histogram Scatter Control

sheet Flow Diagram Effect Diagram Chart
Diagram
Identification of
problem
Defining the problem

Record of facts

Detecting causes of
problem
Develop Improvement
method
(Solution )

Implementation

Evaluation of result

Process control
( Standardization )

Relation :-
Strong Normal

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