Course Manual

Development of Productivity
Practitioners: Basic Program
A Self-Paced eLearning Course
(Foundation of Productivity Practitioners Certification)
 Module 5 Basic P&Q Tools and Techniques
Introduction

This module allows you to develop an appreciation of the basic

productivity tools and techniques that a Productivity Practitioner is
expected to apply

While there are various basic productivity tools and techniques,

this module will focus only on the three (3) most basic

It must be noted that the three basic tools provide a good

foundation in the development of Productivity Practitioners

Hence, you are encouraged to familiarize yourself with and learn

more about this three basic tools and techniques and be ready to
apply them in the right way
 Module 5 Basic P&Q Tools and Techniques
Introduction
But wait, theres another important thing to remember

The three (3) basic tools and techniques aim to

address certain problems/gaps that are considered triggers

The triggers will lead the organization to explore any of the

tools and techniques that they think will help solve
and/or appropriately address the identified problems/gaps

Thus, if the problem/gap is having a disorganized workplace,

5S is appropriate. If the problem/gap is lack of bottom-up
communication, the Suggestion Scheme (SS) is effective.
If the problem/gap is lack of a systematic problem solving at
the workplace, the Quality Circle (QC) is the answer
 Module 5 Basic P&Q Tools and Techniques

Introduction

Finally, please remember that the problems/gaps or the

triggers for implementing or applying the basic
productivity improvement tools and techniques are
identified as a result of conducting productivity climate
assessment/productivity measurement.
 Module 5 Basic P&Q Tools and Techniques

Getting Ready to Practice Productivity

Through the Basic Tools and Techniques
(Understanding the What-and-How of Basic
P&Q Tools and Techniques)
 Module 5 Basic P&Q Tools and Techniques

Learning Objectives
At the end of the module, participants will be able to:

1. Identify the basic productivity tools and techniques

2. Describe how each of these tools and techniques can
be applied in improving productivity in the workplace
and
3. Outline the step-by-step process in applying these
tools and techniques in the workplace
 Module 5 Basic P&Q Tools and Techniques

Outline
Improving the Workplace through 5S
Unleashing Innovative Ideas through a
Suggestion Scheme (SS)
Solving Problems at the Workplace
through the Quality Circle (QC)
 Module 5.1 Getting to Know 5S
Introduction

This Module focuses on 5S which is a proven tool in

developing a productive and quality workplace or
organization/company based on experiences of countries
like Japan, Korea and many others

The context of the module is an organization or workplace,

shop floor or an office

Along with the other basic tools and techniques, 5S creates

a culture of productivity and quality improvement
 Module 5.1 Getting to Know 5S
Introduction

The impact of 5S goes beyond the physical aspect (i.e.

workplace organization), its greater impact is instilling self-
discipline in a properly organized working environment

In other words instilling self-discipline in being able to do

things without being told and reprimanded

This sense of self-discipline through 5S contributes to

enhanced level of productivity in the organization
 Module 5.1 Improving the Workplace
through 5S

Improving the Workplace through 5S

(Developing and Sustaining a Productive & Quality Workplace)
 Module 5.1 Improving the Workplace
through 5S

Learning Objectives
At the end of the session, participants will be able to:

Define 5S and why it is needed in the workplace

Explain the basic concept and principles of each
component S and how it is applied
Cite the key steps in implementing 5S
 Module 5.1 Improving the Workplace
through 5S

Outline
What is 5S and which problems in the workplace
does it intend to address?
What is the meaning of each component S in 5S?
Concepts and Principles of each component S
and how it is applied
Key steps in implementing 5S and critical success
factors
Module 5.1 Improving the Workplace
through 5S
Getting to Know 5S
and What It Can Do for You
and Your Organization
 What is 5S?

5S is a systematized approach to:

organize work areas
keep rules and standards
maintain discipline

5S utilizes:
workplace organization
work simplification techniques

5S practice:
develops positive attitude among workers
cultivates an environment of efficiency,
effectiveness and economy
 Recognizing the Need for 5S

Like the other productivity tools it is

important to identify/recognize the
problems that can be addressed by 5S

These problems/gaps are actually

considered as the triggers for 5S
Recognizing the Need for 5S

Common Workplace Problems

Inconsistent cleanliness, orderliness
(e.g. cluttered work area)

Difficulty in retrieving files

(lack of proper labeling of items/files)

Inadequate space

Things are not put in proper place or

storage area
 The Meaning of each S in 5S

S EIRI
S EISO
SWEEP
SORT
SHITSUKE
SELF-DISCIPLINE
TAKE OUT UNNECESSARY CLEAN YOUR WORKPLACE
ITEMS AND DISPOSE

S EITON S EIKETSU
SYSTEMATIZE SANITIZE

DO THINGS SPONTANEOUSLY
WITHOUT BEING TOLD
OR ORDERED

ARRANGE NECESSARY ITEMS

IN GOOD ORDER
5S MAINTAIN HIGH STANDARD
OF HOUSEKEEPING
SEIRI (SORT)
 SEIRI (SORT)

Select what is necessary and dispose

unnecessary items properly
Key Principles:
Waste Elimination
Stratification
Management
Dealing with
Causes
 How to SEIRI Your Workplace

Required
Stratification
Which? Action

Items having
Throw away
Items not no value and
easy to dispose immediately
necessary

Items having Look for a buyer

SEIRI some value for
sale
who offers the
best price

Items having no Work out a less

Necessary value but disposal costly and safe
Items is costly way for disposal

SEITON
 Some SEIRI Practices

Criteria for Sorting

Disposal Tag
Designated Storage Area
Disposal Procedure
Akafuda (Red Tag) Operation
Material List
Akafuda (Red Tag) Operation
 SEITON

(Systematize)
 SEITON (SYSTEMATIZE)

Organize necessary items for easy and

fast retrieval

Key Principles:
Functional Storage
A Place for Everything
Search Elimination
 How to SEITON Your Workplace
Required
Stratification
Action

Items Must be placed

SEITON frequently near the point
used of use

Necessary Items Can be placed

sometimes farther away
Items used

Items not used at Must be stored

all but must be separately with
kept clear identification
SEIRI
 Some SEITON Practices

Follow the first-in-first-out

(FIFO) method for storing items

Assign each item to a

dedicated location

All items and their locations should be

labeled systematically
 SEISO

SWEEP
 SEISO (SWEEP)

Clean your workplace and equipment

Key Principles:
Cleaning as a way of
purifying the spirit
Cleaning as Inspection
Elimination of Minor
Defects
 Some SEISO Practices

Practice 5-10 minutes

of Seiso daily

Assign an owner to each

equipment

Combine cleaning (Seiso)

with inspection
 Some SEISO Practices

Organize a Big Clean-Up

Day once or twice a year
 SEIKETSU

Sanitize/Standardize
SEIKETSU (SANITIZE/STANDARDIZE)

Maintain a high standard of housekeeping

and workplace organization at all times.

Key Principles:
Visual Management
Standardization
 Some SEIKETSU Practices

Visual control signs

Color coding

color-coded bookshelves color-coded filing method

 Some SEIKETSU Practices
11.

location
day processing
file project
hour meeting
page memo
copy filing
minute telephone call
tool work
Never in implementing the
first 3Ss, maintain a high
standard of cleanliness and put
everything in writing.
 SHITSUKE
(SELF-DISCIPLINE)
 SHITSUKE (SELF-DISCIPLINE)

Do things spontaneously Train people to follow

without being told or good housekeeping
ordered rules autonomously
 SHITSUKE (SELF-DISCIPLINE)

Key Principles:
Habit Formation
Disciplined
Workplace
Empowerment of
Workers
 Some SHITSUKE Practices

Greet people with a smile

Be a good listener
Be kaizen-oriented
Demonstrate team spirit

KAIZEN
 Key Steps in Implementing 5S

1. PREPARATION PLAN

2. IMPLEMENTATION
DO
3. 5S PRACTICE

4. REGULAR 5S AUDIT
CHECK
5. EVALUATION & IMPROVEMENT

6. SUSTAINABILITY ACT
 5S Organizational Structure
CEO
5S Committee Chairman

MANAGER MANAGER
Education & Training Rewards & Recognition
Sub-Committee Sub-Committee

MANAGER MANAGER
Audit Promotions
Sub-Committee Sub-Committee

Dept. Dept. Dept. Dept.

1 2 3 4
Factors Leading to the Success of 5S

Strong sponsorship and leadership of

Company President/CEO
Active promoter
Good example by management
Regular audits
Good documentation
Competition
Visits by external people/consultants
Turn PDCA
Point for Reflection

How can I apply 5S

in my workplace to
improve productivity
and quality of my
organization?
Module 5.2 Unleashing Improvement Ideas
through the Suggestion Scheme (SS)

Unleashing Improvement
Ideas Through the
Suggestion Scheme (SS)
 Module 5.2 Unleashing Improvement Ideas
through the Suggestion Scheme (SS)

Learning Objectives
At the end of the session, participants will be able to:

1. Define Suggestion Scheme (SS)

2. Recall the problems or reasons why SS is needed
3. Explain the objectives and benefits of SS
4. Relate its application in the organization
 Module 5.2 Unleashing Improvement Ideas
through the Suggestion Scheme (SS)

Outline
Definition of Suggestion Scheme (SS)
Why the Need for Suggestion Scheme
Objectives and Benefits of SS
Application of SS
Requirements
Guidelines
Other Tips
Definition of Suggestion
Scheme (SS)
 Suggestion Scheme Defined

It is a systematic approach to
solicit ideas for improvement.

The concept of Suggestion Scheme is not the same

as the suggestion boxes that are usually seen in
service-oriented organizations such as restaurants,
hotels, among others.
 Why Suggestion Scheme

Problems or Reasons Why

SS is Needed
 Why the Need for Suggestion Scheme (SS)

Recognizing problems that trigger the need for

Suggestion Scheme

Like the other productivity tools and techniques

such as 5S, it is important to identify and
recognize the problems/gaps that can be
addressed by Suggestion Scheme (SS)

These problems/gaps are actually considered

as the triggers

The next slide shows the triggers for SS

 Why the Need for Suggestion Scheme (SS)

One-Way Communication

There is a perceived problem/gap when there is only a one-way communication

where the approach of top management is characterized by merely giving order
and forcing everyone in the organization to strictly comply with such order. In this
approach, people down the line are not consulted.
As a result, people become unwilling to obey and resistance ensues.
 Why the Need for Suggestion Scheme (SS)
Block of Communication by Middle Management
Sometimes the problem/gap
comes from the Middle Managers
who filter the communication
received from the top management.

Middle
Management

? ? ? ? ? ?
 Two-Way Communication is what is most
needed in an organization
When management employees can respond
provides clear directions by giving their ideas on how
and policies to do and how to carry out
the directions and policies.
 Two-Way Communication Through
Suggestion Scheme

MANAGEMENT

Recognition
Reward Suggestions
Commendation

EMPLOYEES

Suggestion Scheme promotes

and enhances two-way communication.
 Objectives and Benefits of
Suggestion Scheme

Objectives and Benefits of

Suggestion Scheme (SS)
 Objectives of the Suggestion Scheme

1. To establish a strong flow of two-way

communication between management and
employees

2. To improve productivity and quality of products

and services of the organization
 Benefits of Suggestion Scheme

Good flow of communication

Improved workplace vitality
Improved operations
 Benefits of Suggestion Scheme

To Management
Information for reviewing and improving the
organizations policies and procedures

Chance of discovering excellent caliber

employees

Information on employees training needs

 Benefits of Suggestion Scheme

To Employees
Self-development
Recognition
Satisfaction
Applying the Suggestion Scheme

Application of
Suggestion Scheme (SS)
Requirements
Guidelines
Other Tips
 Requirements for SS

SS Organizational Structure
SS Implementing Guidelines
Promotional and educational campaign
Evaluation and Improvement of Scheme
 SS Organizational Structure
Sets directives & goals of the organization SS
CEO Appoints SS Committee representatives
Approves recommendations of SS Committee
Provides necessary resources for
implementation of approved suggestions
Establishes SS Implementing Guidelines
SS Committee Promotes, solicits, evaluates, improves the Scheme
Evaluates suggestions, provides feedback,
recommends implementation to CEO
Facilitates all SS Committee meetings
Chairperson Sets norms for SS Committee meetings
Signs feedback forms
Attends all SS Committee meetings
Members May be assigned as Chairperson of sub-comm.
Receives all suggestion
Monitors number of suggestions received
Secretariat Regularly updates SS Committee on suggestions
received
 Guidelines

Objectives of the SS
Rules and Regulations
Acceptable/Not Acceptable Ideas
Who are exempted
System for receiving suggestions and
providing feedback
Mechanism for evaluating suggestions
Reward and Recognition System
 Ideas Encouraged and Welcome

Improving work systems and procedures

Efficient and effective allocation and
utilization of resources
Encourage employee participation
Improve working conditions
Enhance working climate
Improve employee morale
 Not Acceptable Ideas

Personal problems
Complaints on management policies and
decisions
Complaints on salaries and wages
Abstract/imaginary ideas
Mere opinions, wishes, and complaints
Suggestions that do not lead to improvement
Suggestions requiring large investment
 Guide in Formulating Suggestions

1. OBSERVE your surroundings

(4M 1E : Man, Machine, Material, Method,
Environment)
2. INVESTIGATE current situation
(5W2H: Why? What? Where? Who? When?;
How? How many/much?)
3. THINK of alternative ways
4. SELECT the best approach
Is it cost-effective?
What potential benefits can be gained from it?
Is it doable?
 Tips on Writing Suggestions

1. Imagine you are the evaluator

2. Make your suggestion easy to understand
- print neatly, dont scribble
3. Communicate facts accurately
- organize idea
- list and quantify
4. Use drawings or illustrations
 Suggestion Form
Date Prepared:_________________ Registration No.:_______________
Name of Suggester:__________________ Date/Time Received:____________________
Division/Section:_________________
Title of Suggestion:_________________________
Present Situation:
Change Proposed:

Potential Benefits:
(Note: Provide illustrations when applicable. Use additional sheets if necessary)

ACKNOWLEDGEMENT RECEIPT
Date:_____________ Registration No._____________
Dear Mr./Ms.:______________

We would like to thank you for your suggestion dated____________. We are now looking into your
suggestion and will let you know the outcome of our evaluation on or before __________________.
SS Chairperson
 Feedback Form A
Date:_______________

Dear Mr./Ms.:__________________

Thank you very much for your suggestion dated_____and filed/submitted__________.

However, we regret to inform you that your suggestion cannot be considered
for the following reasons:
__________________________________________________________________
We deeply appreciate your continuing concern for the improvement of our
organization. Meanwhile, your suggestion will be kept on record for possible
consideration in the future.
We look forward to receiving more suggestions from you.

Yours truly,

SS Chairperson
 Feedback Form B
Date:_______________

Dear Mr./Ms.:__________________

Thank you very much for your suggestion dated_____and filed/submitted__________.

We are pleased to inform you that your suggestion was accepted for further
evaluation. We will provide you a feedback on the result of the evaluation within a
month.

We deeply appreciate your continuing concern for the improvement of our

organization. We look forward to receiving more suggestions from you.

Yours truly,

SS Chairperson
 Feedback Form C
Date:_______________

Dear Mr./Ms.:__________________

Congratulations!

Your suggestion entitled_______________dated__________was rated______.

We hope to implement your suggestion:

( ) Immediately ( ) Within 6 months ( ) Within 1 year

(Division/Office/Person) shall be coordinating with you.

We look forward to more suggestions from you. Thank you.

Yours truly,

SS Chairperson
 Suggested Evaluation Criteria
Weighted
Evaluation Factor Score x Weight Score
Impact (operations, HR, Clients) 0-10 x 4 0 - 40
Feasibility (Financial, Technical) 0-10 x 3 0 - 30
Cost Savings 0-10 x 2 0 - 20
Originality 0-10 x 1 0 - 10
Total Score 100

Class Score Action to be Taken

A Above 80 points Should be implemented
Can be implemented but
A 30 - 80 points needs improvement
A Below 30 points Needs further study
 Points to Remember in
Evaluating Suggestions

Study each suggestion well

Clarify suggestion
Consider level of suggester
Build up confidence of first-time suggesters
Motivate experienced suggesters to
challenge higher goals
Evaluate suggestions promptly
Notify the suggester of evaluation result
 Incentives, Awards, and
Recognition Scheme

INCENTIVES
Idea incentive (US$ 0.50 0.75)
Completion incentive
(US$2.00 4.00)
Free snacks and T-shirt
Bedroom Showcase
Computer Showcase

AWARDS
1st
Best Suggestion of the Month
Best Section Award
Suggestion of the Year Award
Best Promoter
RECOGNITION
Certificate of
Recognition
Newsletter feature
Plaque of Recognition
 Award Categories

Customer Focus Ideas that would help build

relationship with customers

Suggestions for cost savings

Revenue Generation or increasing revenue
New ideas focusing on the
Innovation
chosen theme of the month
Recommendations for the
Strategic Direction
future direction of business
 Implementation and Sustenance Strategy
Stage 1: Introduction Strive for Quantity

Plan and Organize Encourage Participation

CEO Sponsorship Solicit Suggestions

Education
SS Committee
Objective Evaluation
Implementing guidelines
Immediate Feedback
Study Visits Implementation of Suggestion
Promote the Scheme Review and Monitoring Scheme

Launching Activity Implementing Guidelines

Promotional Activities
 Implementation and Sustenance Strategy
Stage 2: Growth (Strive for Quality)
Continuous Education & Training

Roles of Supervisors Periodic review of scheme

Monitoring of Participation (implementing guidelines,

incentive scheme)
Continuous promotional
activities
Top Management Support

Stage 3. Maintenance & Upgrading

Sustain the Gains
Integration with 5S, Quality Circle (QC)
 Hindering Factors

1. Distrust between management and employees

2. Inadequate resources to recognize and reward
suggesters
3. Focus on tangible benefits
4. Slow or no response
5. Skepticism among middle management
6. Lack of competitive elements
7. Unfair evaluation
8. Lack of publicity or information campaign
 Essential Elements of an
Effective Suggestion Scheme

1. Problem-consciousness among employees

2. Written suggestions to improve work areas
3. Managements involvement
4. Immediate response
5. Standard evaluation criteria
6. Reward and recognition mechanism
7. Implementation of approved suggestions
8. System to monitor participation and results
 Members of the Suggestion
Scheme Committee

SMEs:
- 3-5 members
- composed of the owner/General
Manager and two (2) other
representatives

Large Company
- 7-10 members
- composed of the chairman of the
committee (senior management), a
secretary or core person, and
representatives from each department
 Roles of the Suggestion
Scheme Committee

1. Prepare the guidelines

- objectives
- rules and regulations
- system for receiving suggestions &
providing feedback
- evaluation criteria
- awarding, commendation and publicity
2. Prepare the Suggestion Form
3. Inform employees through bulletin
boards, newsletters circulars
4. Create awareness by encouraging
employees to give a name for the scheme
 Rules and Regulations

Examples:

1. Those who are involved in the administration of the

SS are not eligible.
2. A committee should be responsible for receiving,
screening, evaluating suggestions and providing
feedback To suggestions.

3. The General Manager shall give the final approval of

acceptable suggestions.
Ordinary People Can Beat a Genius!

If 99 out of 100 ideas of a genius can

be good ones, one or two of 100 ideas
of an ordinary person can also be good
ones. Therefore, 100 ordinary people
can beat a genius.
A Point for Reflection

How can I apply

Suggestion Scheme (SS)
in my organization?
 Course Manual
Solving Problems at the Workplace
through
Quality Circle (QC)
 Module 5.3 Solving Problems through
Quality Circle

Learning Objectives
At the end of the session, participants will be able to:

1. Recall the brief history of Quality Circle (QC)

2. Explain the concept and principles of QC and

3. Describe the QC Story or the Problem Solving

Activity (PSA) Cycle together with other
commonly used tools and techniques
 Module 5.3 Solving Problems through
Quality Circle

Outline

Brief History of Quality Circle Movement

Basic QC Concepts and Principles
QC Story or Problem Solving Activity (PSA)
Cycle
Step-by-Step Process of Problem Solving
and commonly used Tools and Techniques
 Introduction to Quality Circle
Like the other productivity tools and techniques, it is important to
identify the problems that can be addressed by Quality Circle
(QC).

These problems are actually considered as the triggers.

For QC, identifying the problems or the triggers is part of the QC

cycle characterized by a step-by-step process.

This sub-module starts with a discussion of the historical

background of the Quality Circle.

This historical background sets the tone for the appreciation of the
key concepts and principles of QC as a basic tool of productivity
and quality improvement.
Historical Perspective of the QC Movement

Brief History of Quality

Circle Movement
 Historical Perspective of the QC Movement

The Quality Circle Movement

Conceived in Japan in 1961 under the leadership of Dr.
Kaoru Ishikawa and the Union of Japanese Scientists
and Engineers (JUSE)
Integrates behavioral theories and quality control
sciences introduced by Drs. Deming and Juran
First QCC registered in May 1962
South Korea, Taiwan, United States, Europe, adopted
QCC in late 60s
Introduced in the Philippines in late 70s: Delta Motor,
GM, Toshiba, Yazaki-Torres
DAP as NPO began promotion in 1980s
Basic Concept and Principles of QC

Basic Concepts and

Principles of Quality Circle
 What is QUALITY CIRCLE (QC)?
Is a small group of employees from the same workplace
organized to participate in mutual development and
problem-solving activities that would help improve quality &
productivity of the organization

7 Basic Features of QC

Voluntary in nature
Small in size
Homogeneous in membership
Projects within control
Systematic and scientific in approach
Continuing in activity
Universal in application
 Benefits of QC/Small Group Activities

Intangible Tangible
Pride in job Improvement of
Improvement of productivity
communication Improvement of quality
Promotion of of product/service
cooperation Improvement of
Improvement in work financial condition
attitude Shorter work hours
Strengthening of Improvement of safety
team spirit
Improvement of
hygiene
consciousness
Major Steps in Organizing a Circle Program

1. Top Management Orientation

2. Middle Management Workshop
3. Circle Leaders Training
4. Piloting or Modeling
5. Organization - Wide Implementation
 The QC Story

QC Story or Problem Solving Activity

(PSA) Cycle

Step-by-Step Process of Problem Solving

Tools and Techniques for Each Step
 The QC Story
(PROBLEM-SOLVING ACTIVITY CYCLE)
The easiest way to understand how the Quality Circle works is
by relating its application as a story.

Just like any story, QC is characterized with a number of

chapters that actually correspond to the steps of how to apply
QC in a systematic way. This means that QC is done in a
logical manner through steps that are sequentially arranged.

Further, the steps are linked with one another. Starting with
QC Story 1 or Step 1, the output of this step is the input to the
next step (QC Story or Step 2, and so on). That is why, it is
important to carefully do each step using appropriate tools and
techniques.
 The QC Story
(PROBLEM-SOLVING ACTIVITY CYCLE)
The next slide shows a diagram of the QC Story. It is a
schematic representation of each chapter or step in an
integrated manner.

The diagram shows that the PDCA (P-lan, D-o, C-heck & A-ct)
framework discussed in Module 1 is embedded in the
QC story.

The QC story shows the cycle of problem-solving activity

that connotes continuous improvement. The cycle never
stops, rather, it continues to solve problems/gaps in order to
significantly contribute to the level of productivity and quality
of an organization that is likewise continuously evolving.
 Theme Selection

1 Problem Identification &

Prioritization
QC
2 Understanding The Problem
STORY PLAN
3 Problem Analysis

4 Solution Formulation& Project

Presentation

5 Project Implementation DO

6 Project
ProjectEvaluation
Evaluation CHECK

7 Standardization
ACTION
Self - Evaluation & Future
8 Planning
 Theme Selection
(QC or Problem-Solving Activity Cycle starts with Theme Selection)

Possible QC Themes for consideration

Housekeeping
Accident and Sickness
Prevention/Safety
Cost Reduction/Waste Items Not Studied
Minimization
Company rules of employment
Product/Service Quality
Improvement Collective labor agreements
Improvement of Delivery with the union
Schedule
Grievances
Work Simplification/Methods
Improvement Budget planning and allocation
Energy Conservation Profits and related financial
Preventive Maintenance matters
Customer Relations
Teambuilding
 7 Basic QC Tools
Show how often certain
Investigate the 1 CHECKSHEETS events happen
distribution of the
characteristics of Consolidates data to show an
the item or situation 2 HISTOGRAM overall picture of the process
under study
being studied
Indicates problem areas
3 PARETO DIAGRAM Prioritizes problems

Show how work is done

FLOW PROCESS
Note changes that 4 CHARTS
Describe the processes that are to be
improved
have occurred over a
Show if process is in control
period of time CONTROL/RUN
5 CHARTS
Show what changes have taken place and
what improvements must be done

Identifies causes of problem

CAUSE & EFFECT
6 Organizes the relationship of
Investigate causes DIAGRAM causal factors
of dispersion
Determines correlation between
SCATTER DIAGRAM
7 two kinds of data
STRATIFICATION Locates sources or causes of
dispersion
 Next (New) 7 QC Tools
organizes the verbal data into
Establish 1 AFFINITY DIAGRAMS groups based on natural
relationship
relationships
among data helps to untangle and find the
2 RELATIONS DIAGRAM logical relations among the
intertwined causes and effects
Identifies possible
solutions maps out solutions (tasks/
3 TREE DIAGRAM activities)
helps find an effective way of
pursuing the problem solving
Prioritize 4 MATRIX DIAGRAM method

solutions
technique that quantifies and
(activities/tasks) MATRIX DATA arranges data presented in a
5 ANALYSIS DIAGRAM
Matrix Diagram
prioritizes options

Predict possible PROCESS DECISION maps out all possible events

risks/ 6 PROGRAM CHARTS including risks or contingencies
that can occur in the
contingencies (PDPC) implementation stage
Plans out
very useful tool when planning
implementation ARROW DIAGRAM
of activities 7 for the activities of a known but
a complex task or project
 Theme Selection

1 Problem Identification &

QC Prioritization
2 Understanding The Problem
STORY PLAN
3 Problem Analysis

4 Solution Formulation& Project

Presentation

5 Project Implementation DO

6 Project
ProjectEvaluation
Evaluation CHECK

7 Standardization
ACTION
Self - Evaluation & Future
8 Planning
 Problem Identification & Prioritization and
Understanding the Problems: QC Story 1&2

1. Problem Identification & 2. Understanding the Problem

Prioritization
Gather data to define the
Select focus area
extent of the problem
List all possible problems
Validate problems Observe the workplace
Classify problems Analyze data
according to Finalize problem
controllability statement
Prioritize problems
 Recognizing the Problems and the Need to
Apply Quality Circle

What is a Problem in the Organization/Workplace?

It is a gap between what is
currently being performed and
what should be performed.
Current vs. Target Performance

Everytime I do The product The product

this job, there are reject rate is reject rate is
many failures. alarming. alarming.

Why are there Delivery of This is tiring.

many dissatisfied Isnt. there a
products is often better way of
clients/
customers? delayed. doing it?
 WHAT IS A QC PROBLEM?
QC problem could be a Maintenance or
an Improvement type of a problem.
Existing
Target
x
gap Maintenance Type
Present
condition

New Target

Present gap
Improvement Type

Condition
Existing Target
 Stages in defining a Problem
Perceived Problems Brainstormed Problems Validated Problems
(Visual Indicators, (without data) (with data)
gut feel,etc.) Financial statements
Operational data,
Organizational chart, Process Charts

EXAMPLE:
1. Long queues (in Frequent delays in 75% of clients
a bank, to get a servicing clients being served after
license, passport, waiting more than
etc.) 20 minutes

2. A high pile or High rate of rejects 30% reject rate

container of defective
products
 Checklist for Problem Identification
Using PQCDSM
Problem and Cause
CAUSE PROBLEM
Factor which contributes to the
Effect or end - result of a cause
occurrence of a problem
or combination of causes

Uneven distribution of workload P Idle workers/ overworked farmers

Long queues Q Increasing customer complaints

Increasing rework rate C Increasing cost of operations

Frequent machine breakdown D Frequent delays in the production

of chicken breed

Poor working conditions S High accident rate

Work overload M High absenteeism rate

 CHECKLIST FOR
PROBLEM IDENTIFICATION
PQCDSM

1. Is Productivity a problem?
2. Is Quality a problem?
3. Is Cost a problem?
4. Is Product Delivery a problem?
5. Is Safety a problem?
6. Is Morale a problem?
 Problem Identification
Tools and Techniques

Tools Technique

Check Sheet Brainstorming

Histogram
Graphs
Line Graph
Bar Graph
Pie Chart
Flow Chart
 Problem Prioritization

1. Problem Identification & Prioritization

Select focus area

List all possible problems
Validate problems
Classify problems according to
controllability
Prioritize problems
Why is Prioritizing Problems Important?

1. To show the seriousness and degree of

importance of solving a problem over
other problems.

2. Because of limited manpower, time and

money.

3. To ensure undivided attention and full

concentration in solving the problem.
 What are the Tools and Techniques
Used in Prioritizing Problems?

Consensus Decision-Making
Matrix Decision Chart or
Matrix Diagram

Pareto Diagram
Tools and Techniques in Problem Prioritization

Consensus Decision-Making
Finding an idea or proposal acceptable
enough that all members can support it
Having a free and open exchange of ideas
which continue until agreement is reached
Each individuals concerns are heard and
understood
Conclusion may not reflect exact wishes of
each person but does not violate the deep
concerns of everyone
Tools and Techniques in Problem Prioritization

Matrix Decision Chart/Diagram

It is a tool used to structure a problem &

examine the relationship of two or more
sets of factors.
It is useful in setting priorities &
highlighting significant items.
 Tools and Techniques in Problem Prioritization

Example
of Matrix
Diagram

BRAINSTORMED
PROBLEMS 1-10 1-10 1-5 1-10 1-5 1-10

Lack of PHF
6 7 5 6 5 6 35 1
High cost of
office supplies 7 5 5 6 5 6 34 2
No source of high-
quality parts 5 6 3 4 4 4 26 4
Lack of
Support 6 5 4 3 3 4 25 5
No dept.
planning 8 7 5 3 3 3 29 3
 Tools and Techniques in Problem Prioritization

Pareto Diagram
Description:

This graphic tool presents causes of

problems from most to
least significant. It is based on the
principle of the vital few and the trivial many (80-20 rule):
that means 80% of the problem is contributed by 20%
of the causes.

Introduced by Italian economist Vilfredo Pareto who in 1906

created a mathematical formula to describe the unequal distribution
of wealth in his country, observing that 80% of the wealth is owned
by 20% of the people.
 Theme Selection

1 Problem Identification &

QC Prioritization
2 Understanding The Problem
STORY PLAN
3 Problem Analysis

4 Solution Formulation& Project

Presentation

5 Project Implementation DO

6 Project
ProjectEvaluation
Evaluation CHECK

7 Standardization
ACTION
Self - Evaluation & Future
8 Planning
 QC Story 3: Problem Analysis

3. Problem Analysis

Brainstorm for possible causes

Show relationship among causes

Validate causes

Identify and classify root causes according to

controllability

Select major root causes

 Tool Used in Problem Analysis
CAUSE AND EFFECT DIAGRAM, also
known as Fishbone Diagram
A schematic diagram that shows the systematic
relationship between a problem or effect and its
causes.

MAN MATERIAL

Low
Productivity

METHOD MACHINE
 Categories of Causes
Causes arising out of the actions Unskilled in farm
Manpower or performance of person operations

Causes arising out of the systems Complicated

Method or procedures in doing the work Instruction

Causes arising out of the items Substandard

Material needed to deliver the service material

Causes arising out of the eqpt Defective Machinery

Machine used to deliver the service

Causes arising out of the condition

Environment in which the work is carried out Calamities
 Steps in Preparing a Cause and Effect Diagram

Step 1. Write the effect on the right-most part and

connect it into the spine

Step 2. Identify the major causes or groups of causes.

Write them into the large bones.

Step 3. Identify the causes under each major cause or

group of causes by asking the question why five
times at the most. Write each cause into the
middle & small bones.

Step 4. Determine controllable and uncontrollable root

causes. (Encircle the root causes).
 Example of the 5 WHYs Analysis

5 WHYs SLIPPERY and

UNSAFE FLOOR

2
Machine is leaking
3
Oil coupling is leaking
4
Rubber lining inside oil
coupling is worn out
1
5 Stock of rubber lining
Oil on Floor ran out

Root cause
 QC Story 4
Solution Formulation and Implementation

4. Solution Formulation and Project Presentation cum

Solution Implementation
Set Objectives
Generate alternative solutions per root cause
Choose best solution
Do a Potential Problem Analysis
Detail out implementation of solution
(Action Plan)
Present project to management for approval
 Solution Formulation
CRITERIA
Why set an Objective?
SPECIFIC
1. To define the result areas in
MEASURABLE
the implementation of the
ATTAINABLE
project.
RESULTS-ORIENTED
2. To help establish priorities in TIME BOUND
terms of impact on the unit. QUANTIFIABLE
UNDERSTANDABLE
3. To monitor progress of the
project.
 Solution Formulation Tools and Techniques Matrix

4Ws & 1H TOOL / GUIDELINE 5 WHYs

Be specific 1. WHY did you select
1. WHAT is Exhaust all possible
this solution?
2. WHY not another
the solutions. Dont be drastic solution?
solution? As much as possible, avoid
3. WILL this solve the
solutions which require problem?
capital investment

2. WHERE is 1. WHY this area?

the solution Specific areas for 2. WHAT about
to be other areas?
improvement
applied?
 Solution Formulation Tools and Techniques Matrix

4Ws & 1H TOOL / GUIDELINE 5 WHYs

3. WHEN is the 3. WHY this
Timetable (GANTT Chart)
solution to be schedule?
Activities with dates from
implemented? start to finish WHY not make it
Cost - benefit - analysis sooner or later?

4. WHO is 4. WHY this person/s?

responsible? GANTT Chart Is he/are they capable
of carrying out the
Person responsible solution?

5. HOW is the GANTT Chart - Activities 5. WHY these

solution to be activities?
Cost - benefit - analysis
WHY not less
implemented? costly activities
with more benefits?
 Solution Formulation Tool
Tree Diagram
A tool used for searching the
measures to solve a problem by
arranging the relations among
objectives and their measures of
a problem in a form of a tree, and
by examining them
systematically
This tool is based on the key feature of a tree, i.e. having many branches. Most
useful in finding solutions to a problem by determining the specific activities that are
doable and ready for implementation.

The QC Team stops brainstorming at the level of measure or branch (as in a tree)
where the identified solutions are already in their most doable or actionable form.

This tool can complement with the Solutions Matrix Diagram. The last level measure
(specific & doable activities)
 Concluding Notes
Quality Circle (QC) or Problem-Solving Activity (PSA) Cycle
is a systematic but continuous process.

Like the other two (2) basic productivity and quality

improvement tools (5S and Suggestion Scheme), QC is
team-based. It is understood that members of a team are
are engaged in the process of implementing these tools.

While the tools in QC are stand alone (can be used singly)

per story or step of the QC/PSA Cycle, these can be used
along with the other tools. Relatedly, the specific
tools per QC Story or Step of PSA can be used in other
chapters or steps. For example, Pareto Diagram which is
a tool in Problem Prioritization can also be used in Problem
Analysis (prioritizing the identified controllable root causes).
 Concluding Notes
This sub-module or learning session is designed for a basic
appreciation of Quality Circle. Please note that the rest of
the components of the QC Story/Steps in the Problem
Solving Activity Cycle will be realized when actual
implementation is done, i.e. during the QC Project
implementation proper in your organization.

The QC Project Proposal Presentation is the next step after

Solutions Formulation. The solutions identified are translated
and packaged as a project proposal and presented to Top
Management for approval. The QC Committee facilitates
this.

The project implementation commences when management

approves the Project Proposal.
 A Point for Reflection

As a member of my department, why do I

need and how do I apply the QC tools
and techniques in accomplishing
expected tasks?
 End of Module 5
Congratulations for finishing your lessons on Module 5!

Gentle reminder please this module contains three (3) learning

sessions, as follows:
1. Improving the Workplace through 5S
2. Unleashing Improvement Ideas through the
Suggestion Scheme (SS)
3. Solving Problems at the Workplace through the
Quality Circle (QC)

You are now ready to take the quiz to see how far you have
absorbed the content of this module.

There are 10 questions.

Please tick/encircle the letter of
the correct answer.
 End of Module 5
But wait
You are encouraged to email to
[email protected]
if you have questions and/or points for
clarification on any of the lessons
taken up in this Module.
If none, you may now close Module 5
and proceed to the Module Quiz.
 Module 5 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.
1. The 4th level of 5S, which is termed as 3. The Quality Circle (QC) is also referred to as
Seiketsu in Japanese means _________ Problem-Solving Activity Cycle (PSA) .

a. Systematize a. False
b. Sort b. Maybe
c. Self-discipline c. Uncertain
d. Standardize d. True
e. Sweep e. None of the above

2. 5S: Organize Workplace; 4. The set of common tools used in QC Story no. 1
Suggestion Scheme:__________________ or Problem Identification are______________.

a. Institutionalize productivity and quality a. Ishikawa Diagram, Tree Diagram, Gantt

improvement Chart
b. Enhance two-way communication b. Check sheet, Process Flow Chart, Graphs
c. Unleash improvement ideas of employees c. Solutions Matrix, Histogram, Pareto
Diagram
d. b & c only
d. Pareto Diagram, Ishikawa Diagram, Matrix
e. c only
Decision Chart
e. None of the above
 Module 5 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.
5. In practicing 5S, in which S do you think 7. In implementing Suggestion Scheme,
Akafuda or Red Tag Operation is most improvement ideas are the primary focus.
applicable? Which among the following are non-
improvement ideas?
a. 1S - Sort
b. 2S Systematize a. Customized systems and processes
c. 3S Sweep based on customer feedback
d. 4S Standardize b. Efficient and effective allocation and
e. 5S Self-Discipline utilization of resources
c. Complaints on Salary & Wages
6. Ishikawa Diagram: Root Causes; d. Abstract & imaginary ideas
_______________: Prioritized Cause e. None of the above

a. Tree Diagram
b. Gantt Chart
c. Pareto Diagram
d. Histogram
e. Process Flow Chart
 Module 5 - Quiz
Multiple Choice: Choose the letter that you think corresponds to the correct answer.

8. 5S is a basic productivity improvement tool 9. Kaoru Ishikawa: Cause and Effect Diagram;
that is very useful in creating a culture of _____________: Pareto Diagram
productivity & quality improvement that
requires ones ability to follow rules without a. Wilfredo Pareto
necessarily being told but rather
b. Alfredo Pareto
spontaneously based on commitment.
Which among the 5 Ss this principle c. Alberto Pareto
is aligned with? d. Vilfredo Pareto
e. None of the above
a. Seiri
b. Seiton 10. In the implementation and sustenance strategy
for Suggestion Scheme, there are three (3)
c. Seiso stages. Stage 1 strives for quantity, Stage 3 is
d. Seiketsu on sustaining the gains. What does Stage 2
e. Shitsuke strives for?

a. Results
b. Quality
c. improvements
d. Solutions
e. Implementation
 End of Module 5
After taking the quiz,
you are encouraged to What are my Top 3
reflect and answer Takeaways or my
the question on this slide.
Write your answer on your Most Significant
productivity journal. Learnings from this
module?