III UNIT - TQM TOOLS AND TECHNIQUES I

IMPORTANT TOPICS

• OLD SEVEN TOOLS

• NEW MANAGEMENT TOOLS

• BENCHMARKING

• SIX SIGMA

• FMEA
7 OLD / STATISTICAL / TRADITIONAL TOOLS
1. Flow Chart
2. Check Sheet
3. Histogram
4. Pareto Diagram
5. Cause and Effect Diagram
6. Scatter Diagram
7. Control Chart
Tools and their uses
S.No Statistical tools Purpose

1 Flow chart For depicting the essential steps of a process by

using standard symbols
2 Check sheet For systematic data gathering, by tabulating the
frequency of occurrence
3 Histogram For graphically displaying the frequency
distribution of the numerical data
4 Pareto diagram For identifying the vital few causes that account
for a dominant share of a quality loss
5 Cause and effect diagram For identifying and analysing the potential causes
of a given problem
6 Scatter diagram For depicting the relationship between two
variables
7 Control chart For identifying process variations and signalling
corrective action to be taken
 Flow charts
• It is used for depicting the steps of a process in an easily understandable form, by using standard
symbols
• It is used to document and analyse the connection and sequence of events in a process

S.No Symbol Name Meaning

For indicating chart start or

1 Terminator
end of the flow chart
Action For identifying a process or
2
(rectangular) activity or task or
operation
3 Decision For indicating a decision

For indicating the direction

4 Arrows
of the process

For indicating a link to

5 Link another page or another
flow chart
 CHECK SHEET

A check sheet is a structured, prepared form for collecting and analyzing data. This is a
generic data collection and analysis tool that can be adapted for a wide variety of purposes
and is considered one of the seven basic quality tools.

WHEN TO USE A CHECK SHEET

•When data can be observed and collected repeatedly by the same person or at the same
location

•When collecting data on the frequency or patterns of events, problems, defects, defect
location, defect causes, or similar issues

•When collecting data from a production process

 HISTOGRAM
• A frequency distribution shows how often each different value in a set of data occurs. A
histogram is the most commonly used graph to show frequency distributions. It looks very
much like a bar chart, but there are important differences between them. This helpful data
collection and analysis tool is considered one of the seven basic quality tools.

• WHEN TO USE A HISTOGRAM

• The data are numerical

• You want to see the shape of the data’s distribution, especially when determining whether the
output of a process is distributed approximately normally
• Analyzing whether a process can meet the customer’s requirements
• Analyzing what the output from a supplier’s process looks like
FISHBONE DIAGRAM OR ISHIKAWA
DIAGRAM
 CAUSE & EFFECT
Definition: DIAGRAM
A diagram that shows the causes of an event and is
often used to outline the different steps in a process,
demonstrate where quality control issues might arise
and determine which resources are required at
specific times.
 SCATTER
Definition: DIAGRAM
•A scatter diagram, also called a scatterplot or a scatter plot, is a visualization of the relationship
between two variables measured on the same set of individuals.
•A tool to study the relationship between two variables is known as Scatter Diagram. It consists of
plotting a series of points representing several observations on a graph in which one variable is on X-
axis and the other variable in on Y-axis.
Benefits:
•It shows the relationship between two variables.
•It is the best method to show a non-linear pattern.
•The range of data flow, i.e. maximum and minimum value, can be easily determined.
•Shows a trend in the data relationship
•Retains exact data values and sample size
•Shows minimum/maximum
 • WHEN TO USE A SCATTER DIAGRAM

• When you have paired numerical data

• When your dependent variable may have multiple values for
each value of your independent variable
S.No Temperature ICE Cream sales
1 14 222
2 16 265
3 15 245
4 18 300
5 22 350
6 22.5 360
7 23 400
8 25 550
 CONTROL CHART
• The control chart is a graph used to study how a process changes over time. Data are plotted in time order. A control chart always has a central line for the
average, an upper line for the upper control limit, and a lower line for the lower control limit. These lines are determined from historical data.

• WHEN TO USE A CONTROL CHART

• When controlling ongoing processes by finding and correcting problems as they occur
• When predicting the expected range of outcomes from a process
• When determining whether a process is stable (in statistical control)
• When analyzing patterns of process variation from special causes (non-routine events) or common causes (built into the process)
• When determining whether your quality improvement project should aim to prevent specific problems or to make fundamental changes to the
process 
•  
 PARETO CHART
• A Pareto Chart is a graph that indicates the frequency of defects, as well as their cumulative impact. Pareto Charts are useful to
find the defects to prioritize in order to observe the greatest overall improvement.

• WHEN TO USE A PARETO CHART

• When analyzing data about the frequency of problems or causes in a process

• When there are many problems or causes and you want to focus on the most significant
• When analyzing broad causes by looking at their specific components
• When communicating with others about your data
Type of Defect Frequency of Defect % of Total Cumulative %
Button Defect 23 39 39
Pocket Defect 16 27.1 66.1
Collar Defect 10 16.9 83
Cuff Defect 7 11.9 94.9
Sleeve Defect 3 5.1 100
Total 59    
2) Each bar usually represents a type of defect or problem. The height of the bar represents
any important unit of measure — often the frequency of occurrence or cost.

3) The bars are presented in descending order (from tallest to shortest). Therefore, you can
see which defects are more frequent at a glance. 

4) The line represents the cumulative percentage of defects.

Let’s look at the table of data for the Pareto Chart above to understand what cumulative
percentage is.
 NEW SEVEN MANAGEMENT TOOLS
• Affinity Diagram
• Interrelationship Diagram OR Relationship
• Tree Diagram
• Matrix Diagram
• Prioritization Diagram
• PDPC
• Network Diagram OR Arrow Diagram
 What is Affinity Diagram
• Affinity diagram, one step of the Six Sigma method, is
originally developed by Japanese anthropologist Kawakita Jiro
in the 1960s. It is used to organize unstructured ideas and
information and link up to form thinking model. Not only do
affinity diagrams generate ideas, but ideas will be organized
into groups for further analysis. Affinity Diagrams are widely
utilized in the fields like business analysis, project
management, scholar research, and product management etc.
 PROCESS DECISION AND PROGRAM
CHART (PDPC)
• The process decision program chart (PDPC) or DECISION
TREE is defined as a new management planning tool that
systematically identifies what might go wrong in a plan under
development. Counter measures are developed to prevent or
offset those problems. By using PDPC, you can either revise
the plan to avoid the problems or be ready with the best
response when a problem occurs.
 MATRIX DIAGRAM

• A matrix diagram is defined as a new management planning tool used for

analyzing and displaying the relationship between data sets.

• The matrix diagram shows the relationship between two, three, or four
groups of information. It also can give information about the relationship,
such as its strength, of the roles played by various individuals or
measurements.

• Six differently shaped matrices are possible: L, T, Y, X, C, and roof-shaped,

depending on how many groups must be compared.
 ARROW DIAGRAM

• Also called: activity on arrow diagram, activity network diagram, network

diagram, activity chart

• An arrow diagram is defined as a process diagramming tool used to

determine optimal sequence of events, and their interconnectivity. It is used
for scheduling and to determine the critical path through nodes.

• The arrow diagramming method shows the required order of tasks in a

project or process, the best schedule for the entire project, and potential
scheduling and resource problems and their solutions.
 WHEN TO USE AN ARROW DIAGRAM

• When scheduling and monitoring tasks within a complex

project or process with interrelated tasks and resources
•  When you know the steps of the project or process, their
sequence, and how long each step takes
•  When project schedule is critical, with serious consequences
for completing the project late or significant advantage to
completing the project early
 TREE DIAGRAM
• A tree diagram is a new management planning tool that depicts the
hierarchy of tasks and subtasks needed to complete and objective.
The tree diagram starts with one item that branches into two or
more, each of which branch into two or more, and so on. The
finished diagram bears a resemblance to a tree, with a trunk and
multiple branches.
• It is used to break down broad categories into finer and finer levels
of detail. Developing the tree diagram helps you move your
thinking step by step from generalities to specifics.
 WHEN TO USE A TREE DIAGRAM

• When an issue is known or being addressed in broad

generalities and you must move to specific details, such as
when developing logical steps to achieve an objective
• When developing actions to carry out a solution or other plan
• When analyzing processes in detail
• When probing for the root cause of a problem
 Interrelationship diagram
• It is defined as a new management planning tool that depicts the relationship
among factors in a complex situation. The interrelationship diagram shows cause-
and-effect relationships. Its main purpose is to help identify relationships that are
not easily recognizable.
• An interrelationship diagram borders on being a tool for root cause identification,
but it is mainly used to identify logical relationships in a complex and confusing
problem situation.

• In such cases, the strength of an interrelationship diagram is its ability to visualize

such relationships. The process of creating an interrelationship diagram can help
groups analyze the natural links between different aspects of a complex situation.
 WHEN TO USE IT

When trying to understand links between ideas or cause-
and-effect relationships, such as when trying to identify an
area of greatest impact for improvement

When a complex issue is being analyzed for causes
• When a complex solution is being implemented
 FAILURE MODE AND EFFECT ANALYSIS(FMEA)

• "Failure modes" means the ways, or modes, in which something might fail.

Failures are any errors or defects, especially ones that affect the customer, and can
be potential or actual.

• "Effects analysis" refers to studying the consequences of those failures.

• Failure Mode and Effects Analysis (FMEA) is a structured approach to
discovering potential failures that may exist within the design of a product or
process.

•  FMEA is used during design to prevent failures. Later it’s used for control, before
and during ongoing operation of the process. Ideally, FMEA begins during the
earliest conceptual stages of design and continues throughout the life of the
product or service.
Function or Failure Potential Potential Detection
Process Step Type Impact SEV Causes OCC Mode DET RPN

What are the

existing
controls that
What is the either prevent
Briefly impact on the How What How the failure
outline Describe key output severe is causes the frequently from occurring How
function, step what has variables or the effect key input is this or detect it easy is it Risk
or item being gone internal to the to go likely to should it to priority
analyzed wrong requirements? customer? wrong? occur? occur? detect? number
 SIX SIGMA
• Six Sigma is a method that provides organizations tools to
improve the capability of their business processes. This
increase in performance and decrease in process variation
helps lead to defect reduction and improvement in profits,
employee morale, and quality of products or services.

• It was developed by Motorola and Bill Smith in the early

1980’s based on quality management fundamentals, then
became a popular management approach at General Electric
(GE) with Jack Welch in the early 1990’s.
 Objectives and Principles of 6σ :
• Achieve Zero Defects • Always focus on the customer

• Improve customer satisfaction (Internal and External)

• Understand how work really happens
•  Improve the quality of product and service
• Make your processes flow smoothly
•  Reduce the process cycle time

•  Overall cost saving up to 30% • Reduce waste and concentrate on value

•  Development of staff skill
• Stop defects through removing variation

• Get buy-in from the team through collaboration

• Make your efforts systematic and scientific

 PROCESS OF SIX SIGMA

DMAIC DMADV

• Defines a business process. • Define customer needs

• Measuring current process • Measure customer needs & specification

• Identify root cause of the recurring problems • Analyze options to meet customer satisfaction.

• Improvements made to reduce defects • Model is deigned to meet customer needs

• Keep check on future performance • Model put through simulation tests for verification
Cont…
• DMAIC typically defines a business process and how it applies; DMADV defines customer needs as they relate to
a service or product.

• With regard to measurement, DMAIC measures the current performance of a process, while DMADV measures
customer specifications and needs.

• DMAIC focuses on making improvements to a business process to reduce or eliminate defects. DMADV develop
an appropriate business model to meet customer requirements.
 DMAIC PROCESS
• Define
• This phase defines the project. It identifies critical customer requirements and links
them to business needs. It also defines a project charter and the business processes to
be undertaken for Six Sigma Process.
• DMAIC focuses on:
 defining business processes • Measure
 measuring the current performance of a business process • This phase involves selecting product characteristic, mapping the respective process,
 finding the root cause of a problem making the necessary measurements and recording the results of the process. This is
 making improvements to the business process to reduce defects essentially a data collection phase.
 implementing controls to alert leadership when the process is no longer in
control. • Analyze
• In this phase, an action plan is created to close the “gap” between how things
currently work and how the organization would like them to work in order to meet the
goals for a particular product or service. This phase also requires organizations to
estimate their short term and long term capabilities.

• Improve
• This phase involves improving processes/product performance characteristics for
achieving desired results and goals. This phase involves the application of scientific
tools and techniques for making tangible improvements in profitability and customer
satisfaction.

• Control
• This Phase requires the Six Sigma Process conditions to be properly documented and
monitored through statistical process control methods. After a “setting in” period, the
process capability should be reassessed. Depending upon the results of such a follow-
up analysis, it may be sometimes necessary to revisit one or more of the preceding
phases.
 DMADV PROCESS
• DMADV focuses on:

 defining the customer’s needs

 measuring the customer’s needs

 finding process options that will meet the customer’s needs

 designing a business model that helps meet the customer’s needs

 verifying that the new model meets the customer’s needs

• Define
• The goals of the first phase are to identify the purpose of the project, process or service, to identify and then set realistic and measurable goals as seen from the
perspectives of the organization and the stakeholder(s), to create the schedule and guidelines for the review and to identify and assess potential risks. A clear definition
of the project is established during this step, and every strategy and goal must be aligned with the expectations of the company and the customers.

• Measurement
• Next comes measuring the factors that are critical to quality, or CTQs. Steps taken should include: defining requirements and market segments, identifying the critical
design parameters, designing scorecards that will evaluate the design components more important to the quality, reassessing risk and assessing the production process
capability and product capability. Once the values for these factors are known, then an effective approach can be taken to start the production process. It is important
here to determine which metrics are critical to the stakeholder and to translate the customer requirements into clear project goals.

• Analysis
• Actions taken during this phase will include: developing design alternatives, identifying the optimal combination of requirements to achieve value within constraints,
developing conceptual designs, evaluating then selecting the best components, then developing the best possible design. It is during this stage that an estimate of the
total life cycle cost of the design is determined. After thoroughly exploring the different design alternatives, what is the best design option available for meeting the
goals?

• Design
• This stage of DMADV includes both a detailed and high level design for the selected alternative. The elements of the design are prioritized and from there a high level
design is developed. Once this step is complete, a more detailed model will be prototyped in order to identify where errors may occur and to make necessary
modifications.

• Verify
• In the final phase, the team validates that the design is acceptable to all stakeholders. Will the design be effective in the real world? Several pilot and production runs
will be necessary to ensure that the quality is the highest possible. Here, expectations will be confirmed, deployment will be expanded and all lessons learned will be
documented. The Verify step also includes a plan to transition the product or service to a routine operation and to ensure that this change is sustainable.
 BENCHMARKING

• Benchmarking is the process of comparing

one's business processes and performance
metrics to industry bests and/or best
practices from other industries.
• Why are others better ? How are others
better ? What can we learn ? How can we
catch up ? How can we become the best
in our industry ?
• Examples :
1. TOYOTA FOR PROCESS
2. INTEL – DESIGN
3. MOTOROLA – TRAINING
 REASONS FOR BENCHMARKING
• Cost comparison.

• Reduction in turn around times.

• Reduction in error rates.

• Establishing meaningful performance

• Indicators /realistic output measures.

• Feasibility of collaboration to achieve cost saving.

• Investigate in sourcing, outsourcing and collaborative opportunities.

• Establish individual performance targets.

• Explore appropriate roles and activities of cataloguers.

• Develop improved outcomes for customers.

 TYPES OF BENCH MARKING
Based on Objects Based on Organization
1. Product Benchmarking 1. Internal Benchmarking
2. Process Benchmarking 2. External Benchmarking
3. Performance Benchmarking 3. Industry Benchmarking
4. Product Benchmarking 4. Competitive Benchmarking
5. Strategic Benchmarking 5. Best-in-class Benchmarking
• Internal benchmarking: comparison of practices and performance between teams, individuals or groups within an organization

• External benchmarking: comparison of organizational performance to industry peers or across industries

• These can be further distilled as follows:

• Process Benchmarking: Demonstrate how top performing companies accomplish the specific process in question. Such
benchmarking is collected via research, surveys/interviews, and site visits. By identifying how others perform the same
functional task or objective, people gain insight and ideas they may not otherwise achieve. Such information affirms and
supports decision-making by executives.

• Performance Metrics: “Performance metrics” give numerical standard against which a client’s own processes can be
compared. These metrics are usually determined via a detailed and carefully analyzed survey or interviews. Clients can then
identify performance gaps, prioritize action items, and then conduct follow-on studies to determine methods of improvement.

• Strategic Benchmarking: Identify the fundamental lessons and winning strategies that have enabled high performing companies to be
successful in their marketplaces. Strategic benchmarking examines how companies compete and is ideal for corporations with a long-term
perspective.
PROCESS OF BENCHMARKING
 2 Marks

1. What are the 7 management OR New Tools.

2. What are the 7 OLD / Statistical / Traditional tools
3. What is pareto chart and when do we use it
4. What is Fishbone Diagram and when do we use it.
5. What is PDPC and when do we use it
6. What is Arrow Diagram/Network and when do we use it.
7. What is Six Sigma
8. What is the main objective of Six sigma
9. What is meant by DMAIC Process
10. What is meant by FMEA
11. What are the stages of FMEA
12. What are the types of FMEA
13. What is Benchmarking
14. List out types of Benchmarking
15. What are the process of Benchmarking
 13 Marks

1. List out seven management tools. Explain them briefly

2. Discuss about the various stages in FMEA

3. Compare Six sigma and TQM Concepts

4. Discuss the traditional Seven QC tools and their merits and demerits.

5. Explain in detail the concept or Procedure of FMEA.

6. Why Benchmarking is required in an organization. Illustrate the different types of benchmarking process.

7. Illustrate the different types of Benchmarking