Course Outline

■ Refresh: 7 Step Problem Solving

■ 7 QC Tools
– Process Flow Chart
– Fish Bone Diagram
– Check Sheet
– Parato Diagram
– Histogram
– Scatter Plot
– Statistical Control Charts
■ Summary
Refresh: 7 Step Problem
Solving

■ Exercise 1
– What is 7 Step Problem Solving ?
– Why we use 7 Step Problem Solving ?
Refresh: 7 Step Problem Solving

■ Why we use the methodology ?

– 7 Step Problem Solving methodology is a
systematic approach to identify problems and
implement solutions to the problem
– It helps to develop in-depth under-standing of the
entire process based on data analysis before
jumping to conclusion
– It ensures that a thorough review of alternatives is
performed
Refresh: 7 Step Problem Solving

■ Key Terms
– Problem
– Symptom
– Root Cause
– Process
– Solution
– Standard
– Monitor
Refresh: 7 Step Problem
Solving

■ Problem is the difference between desired and

actual result

ACTUAL RESULT

PERFORMANCE GAP
INDICATORS
DESIRED RESULT
Refresh: 7 Step Problem
Solving

■ Symptom is an out-ward sign of the problem

■ Root Cause(s) are those real reason and have
great influence on the problem

Problem: Weight too Much

Symptoms: Causes:
+ Clothes too tight + No exercise
+ Belt too small + Too much food
+ Shirt won’t button + Less vegetable
Refresh: 7 Step Problem
Solving

■ Process is a group of sequenced steps that

are needed to accomplish a particular result

STEP 1 STEP 2 STEP 3 RESULT

Refresh: 7 Step Problem Solving

■ Solutions
– Containment is to attack the problem once it
occurred, therefore it usually focuses on removal of
symptoms
– Long-term attempts to eliminate the occurrence of
the problem by removing the root cause(s)
PROBLEM : OVERWEIGHT

SYMPTOM : CLOTHES TOO TIGHT ROOT CAUSE: NO EXERCISE

SOLUTION: GET LOOSER CLOTHES RIDE BIKE 1/2 HR, 4 TIME/WEEK

RESULT : WEIGHT SAME BUT LOOKS BETTER WEIGHT DOWN AND LOOKS BETTER
Refresh: 7 Step Problem Solving

■ Standard is a known way of doing work that

gives a consistent result. When standard is
documented , it allows others to do the same
thing and do not waste time figuring out the
steps to achieve the same result
Refresh: 7 Step Problem Solving

■ Monitor is a measurable system that tells you

something about your problem, process and
causes
Weight (lbs)

200

175

150
Refresh: 7 Step Problem Solving

■ 7 Step Problem Solving Methodology

Analysis with 7 QC Tools

Define
Define
Project
Project

Current
Current Check
CheckResults
Results
Situation
Situation

Cause
Analysis Standardization
Standardization

Solutions
Solutions Future
Future
Plans
Plans
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■ What are the 7 QC tools ?

– Process Flow Chart
– Fish Bone Diagram
– Check Sheet
– Parato Diagram
– Histogram
– Scatter Plot
– Statistical Control Charts
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■ Exercise 2
Tick in the box the statements which are True.

In the process of using the Structured Problem Solving methodology.

( ) If you think there is a problem, try to correct it yourself.

( ) You should aim for continuous improvement.

( ) Constantly applying emergency measures.

( ) It is important to take preventive measures.

( ) You should find out the important hidden problems which

may be the main cause even though it is not obvious.

( ) Study the plans only when there is a complaint.

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Process Flow Chart

■ What is a Process Flow Chart ?

– It is a pictorial representation showing the whole
flow of a process. It includes all detail steps,
decision points, hold points and loops.
■ When do we use ?
– To study and understand a process
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Process Flow Chart

■ Symbols
START / STOP

INPUT

DECISION STEP

PROCESS STEP

DOCUMENTATION
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Process Flow Chart

■ Constructing a Process Flow Chart

– Scope the process thoroughly
– List the process steps in detail, don’t forget any
hidden activities
– Add symbols, arrows and close loops
– Review the flow chart and make sure it matches
actual practice
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Process Flow Chart

■ Example: KTS Hiring Process

■ Exercise 3 (15 mins)
– Form a group of 4 or more persons
– Identify an operation / area of interest
– Construct the process flow chart you just learned
– Present your group process flow
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Fish Bone Diagram

■ What is a Fish Bone Diagram ?

– It is a diagram which shows the relation-ship
between possible causes of the problem
■ When do we use ?
– To find the possible root causes of a problem
■ How do we use ?
– Brainstorming
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Fish Bone Diagram

■ Brainstorming Guidelines
– Establish boundaries for a specific problem
– Involve everyone
– Write down all ideas
– No criticize
– Build on other’s ideas
– Involve the experts to the problem
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Fish Bone Diagram

■ Making a Fish Bone Diagram

– Define the problem
– Add major cause categories
– Brainstorm the causes
– Identify the most likely causes
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Fish Bone Diagram

■ Example: KTS Hiring Process is too slow

■ Exercise 4 (15 mins)
– With the same group
– Identify an operation / area of interest
– Construct a Fish Bone Diagram
– Present your group Fish Bone Diagram
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Check Sheets

■ What is a Check Sheet ?

– It is a method of collecting right data
■ When do we use ?
– Used in data collection, surveys and interviews
– Check Sheet is a good place to start with analysis
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Check Sheets

■ Guidelines to Design a Check Sheet

– It should be easy to read and summarize data
– It should has adequate writing space
– It should be straightforward for data collection
✜ What data to collect
✜ How to measure the data
✜ How often
✜ For how long
✜ Who is to collect the data
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Check Sheets

■ 2 Types of Check Sheets

– Discrete data (i.e. defective item, location and type
…)
– Continuous data (i.e. temperature, time, length … )
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Check Sheets

■ Example: Discrete Data

Customer Complaint Data Sheet

P1 P2 P3 ……
Customer Complaint III II III
Late Shipment I IIII
Imcomplete Shipment IIIII II I
Wrong Product I I II
Damage Package I
Wrong Destination I
Document Error I
Other I
Total IIIIIIIIIIII IIIIIIIIII IIIIIII
12 10 7
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Check Sheets

■ Example: Continuous Data

Production Floor Temperature (C degree)

Date Area 1 Area 2 Area 3 Area 4 Ave Sdv Range
1-May 23 25 24 28 25.0 2.16 5
8-May 24 26 26 30 26.5 2.52 6
……
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Check Sheets

■ Exercise 5 (15 mins)

– Within the group
– Think about a case
– Work out a check sheet
– Present your case objective, analysis approach
and data collecting sheet
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Parato Diagram
■ What is a Parato Diagram
– It is a diagram that shows clearly the level of
importance of the problem
■ When do we use ?
– It is used to separate the vital few causes from
the trivial many by displaying frequency of
causes in decreasing rank order
– Examples to use Parato are analysis of product
reject, machine downtime …
– 80% of the results come from 20% of the causes
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Parato Diagram

■ Constructing a Parato Diagram

– Order the causes or categories
✜ Start with the highest frequency and rank
order all causes or categories
✜ Add categories with small numbers together to
make one category titled with ‘other’ which is
to be placed as last category on the table and
chat
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Parato Diagram

■ Constructing a Parato Diagram (con’t)

– Calculate cumulative totals
– Draw the horizontal and vertical axes
– Draw bars for each cause of category
– Draw the cumulative total lines
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Parato Diagram
■ Example: Why being late to work

Reasons for being late Frequency

Breakfast not ready 24

Having to iron clothes 22
Snooze not alarm 17
Shaver re-power 11
Traffic Jam 6
Other 8
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Parato Diagram
■ Example: Why being late to work

Late for Work

100
90
80
70
60
Times

50
40
30
20
10
0
BF CL AL SH TR OT
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Parato Diagram

■ Exercise 6 (15 mins)

– Within the group
– Think about a case
– Do the cause analysis with Parato Diagram
– Present your group Parato Diagram
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Histogram

■ What is a histogram ?
– It is a type of bar graph where the data is placed
in a range and is divided into intervals. In each
interval, the data occurrence is tallied into a
frequency chart and is drawn into a graph form
■ When do we use histogram ?
– To study the variation of a process or a data set
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Histogram

■ Definitions
– Center tells where the average measurement is
located
– Spread shows the amount of variation or how
wide the distribution is
– Shape is the general form of the distribution
(‘how it looks like’)
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Histogram

■ Definitions (con’t)

Center

Shape

Spread
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Histogram

■ Constructing a Histogram
– Find the number of observations & range
– Determine the number of classes
– Determine the width of each class
– Determine class boundaries
– Tally the number of observations in each class
– Draw the horizontal & vertical axes
– Draw vertical bars for each class
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Histogram

■ Example: Housing Price in Shanghai

110.0 71.0 150.0 87.0 108.0

70.5 75.0 81.0 84.5 180.0
52.0 93.0 124.5 57.5 99.2
102.9 75.5 92.7 64.3 95.3
68.4 98.9 60.7 59.0 95.0
92.5 99.9 105.0 95.9 93.0
102.0 46.0 82.0 146.4 85.0
95.5 41.0 107.0 95.0 111.0
64.0 74.5 95.0 101.0 72.0
61.9 92.0 88.0 108.5 121.5
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Histogram

■ Example: Housing Price in Shanghai

– Find the number of observation & the range

number of observation = 50
range = 180 - 41 = 139
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Histogram

■ Example: Housing Price in Shanghai

– Determine the number of classes using table
below

Number of Observation Number of Classes

20 - 50 5-7
50 - 100 6 - 10
100 - 250 7 - 12
over 250 10 - 20
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Histogram

■ Example: Housing Price in Shanghai

– Determine the width of each class

Width = Range ÷ 7
= 19.9 or about 20
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Histogram

■ Example: Housing Price in Shanghai

– Determine class boundaries: start with lowest
and make sure non-overlapping

Class Boundaries
1 40.01 - 60.00
2 60.01 - 80.00
3 80.01 - 100.00
4 100.01 - 120.00
5 120.01 - 140.00
6 140.01 - 160.00
7 160.01 - 180.00
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Histogram

■ Example: Housing Price in Shanghai

– Tally the number of observations in each class

Class Boundaries Frequency

1 40.01 - 60.00 5
2 60.01 - 80.00 12
3 80.01 - 100.00 20
4 100.01 - 120.00 8
5 120.01 - 140.00 2
6 140.01 - 160.00 2
7 160.01 - 180.00 1
------
50
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Histogram
■ Example: Housing Price in Shanghai
– Draw the horizontal and vertical axes
– Draw vertical bars for each class

2
4
2
0
1
6
1
2 40 60 80 100 120 140 160 180
8
4
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Histogram
■ Exercise 7 (15 mins)
– Constructing the histogram based on the
following data sheet
.70 .72 .70 .70 .71 .70 .70
.70
.70 .68 .70 .71 .69 .69 .72
.69
.71 .70 .71 .73 .70 .73 .67
.69
.74 .70 .72 .69 .69 .70 .70
.72
.71 .71 .69 .72 .69 .68 .71
.66
.68 .66 .71 .67 .71 .68 .68
.70
.72 .70 .70 .70 .69 .72 .73
.70
.69 .71 .72 .71 .72 .69 .68
.70
.73 .73 .67 .67 .68 .70 .68
.66
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Histogram

■ Discussion
– How is the distribution like ?
– What might happen to the process ?
– Did you see the distribution before ?
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Scatter Plot

■ What is a Scatter Plot ?

– It is a plot showing the relationship between 2
characteristics (variables)
■ When to use it ?
– It is to find out or evaluate possible relationships
between 2 variables
■ Constructing a Scatter Plot
– Scale and label the horizontal and vertical axes
– Plot the data points
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Scatter Plot

■ Examples: Evaluate the relationship

between hours price and purchaser’s
income (data on next page)
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Scatter Plot

SAMPLE INCOME ($K) HOUSE PRICE ($K)

1 76 160
2 80 185
3 36 120
4 42 200
5 102 230
6 52 120
7 70 120
8 18 85
9 66 175
10 56 155
11 66 160
12 42 220
13 58 145
14 76 150
15 24 105
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Scatter Plot

■ Correlation

STRONG POSITIVE STRONG NEGATIVE

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Scatter Plot
WEAK POSITIVE WEAK NEGATIVE

NO CORRELATION NO CORRELATION
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Scatter Plot

■ Exercise 8 (15 mins)

– Within the group
– Think about a potential relationship between two
variables
– Understand the relationship by drawing a scatter
plot
– Present your work
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Trend Chart
■ What is a Trend Chart
– It is a graph designed for illustrating the change
behavior over time
– It helps to find out whether the change is random
or has a pattern
■ Plotting a Trend Chart
– Draw the vertical axis and the horizontal axis,
marking the scales
– Plot the data points
– Evaluate the plot to the correlation
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Trend Chart
■ Example: Weight over Time

Weight over Time

120
118
weight (x0.5 KG)

116
114
112
110
108
106
wk11

wk13

wk21

wk23

wk25
wk1

wk5

wk7

wk9

wk15

wk17

wk19
wk3
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Trend Chart

■ Statistical Control Charts

– Statistical Control Charts are to examine
whether a process is under control
– Control Charts have control limits and provide a
picture statistically showing how a process is
performing
– Control Chart pattern helps to understand the
process performance
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Trend Chart

■ Control Chart Pattern

DOWN TREND

UCL

¡ñ
¡ñ
¡ñ ¡ñ
= ¡ñ

X ¡ñ
¡ñ
¡ñ
¡ñ
¡ñ
¡ñ

LCL
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Trend Chart

■ Control Chart Pattern

UP TREND

UCL ¡ñ
¡ñ
¡ñ ¡ñ
¡ñ ¡ñ
=
¡ñ
X ¡ñ ¡ñ ¡ñ

LCL
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Trend Chart

■ Control Chart Pattern

NON RANDOM PATTERN

UCL
¡ñ ¡ñ
¡ñ
¡ñ ¡ñ ¡ñ ¡ñ
¡ñ ¡ñ
¡ñ
= ¡ñ
¡ñ ¡ñ ¡ñ ¡ñ
X ¡ñ
¡ñ
¡ñ ¡ñ
¡ñ
¡ñ
¡ñ

LCL
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Trend Chart

■ Exercise 9 (15 mins)

– Within the group
– Think about case in your daily job
– Plot a Trend Chart or a Control Chart
– Present your work
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Summary

■ What we have learned

– 7 Step Problem Solving
– 7 QC Tools
✜ Process Flow Chart
✜ Fish Bone Diagram
✜ Check Sheet
✜ Parato Diagram
✜ Histogram
✜ Scatter Plot
✜ Statistical Control Charts
7 QC Tools
Summary

■ Important Notes
– Skills are easy: these are what we have learned
in this class
– Doing data analysis is difficult: always ask
yourself
✜ What conclusion you try to get ?
✜ What chart / diagram is to be used ?
✜ What data should be collected ?
■ Illustrations - What do they tell ?
 What do you see?

There's a face... and the word

Do you see a couple or a skull?
Are the horizontal lines parallel or do they slope?
How many legs does this elephant have?
Do you see the three faces?
Do you see the face? Or an Eskimo?
Is the blue on the inner left back or the outer left front?
Do you see a musician or a girl's face?
END