06/20/17

The Basic Seven (B7) Tools of

TQM
by Prof. Jerome Alvarez

Basic Seven Tools of Quality Origin of the Basic 7 Tools

1. Check Sheets Kaoru Ishikawa
2. Histograms o Known for Democratizing Statistics
3. Scatter Plots
o The Basic Seven Tools made statistical analysis less
4. Pareto Analysis complicated for the average person
5. Flowcharts
6. Fish Bone / Cause-and-Effect Diagram o Good Visual Aids make statistical and quality control more
comprehendible.
7. Control Charts

Check Sheets: Check Sheet Example

n The check sheet is a tool that facilitates collection of
relevant data, displaying it in a visual form easily
understood by the brain. Check sheets make it easy to
collect data for specific purposes and to present it in a
way that automatically converts it into useful
information.

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Histograms: Histograms:
o Histograms have to do with variability. Two kinds of data n Bar graphs that show the frequency & distribution of
are commonly associated with processes: attributes data and data by category or class.
variable data. n Show range of values of a measurement & frequency
n An attribute is something that the output product of the process either
has or does not have. with which each value occurs.
n Variable data are data that result when something is measured. n Has vertical & horizontal axis.
n Vertical: frequency of occurrence
o A measurement scale across one axis and a frequency of like n Horizontal: Categories or class intervals
measurements on the other.

Histogram Constructing a Histogram

Histogram can show: o Use range to estimate beginning and end
o sum o Calculate the width of each column by
o mean (x) dividing the range by the number of columns
o Max

o Min Range
= Width
o Range # of Columns

Pizza Co.Example Pizza Co. Example

Lets say the owner wants a distribution of Mean = 2.032258
Thursday Night Sales Max = 7
Min = 0
Data Set representing no. of slices ordered on that day:
Range = 7
0212241312122434143223212212214
2212122121212121212221212112223
1422322212322422441222322122421
2421721223121121222122121222424

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Pizza Co. Example Pizza Co. Example

Histogram How is this helpful to the Pizza Co.?
o 2 slices of pizza most common order placed
70 65
o Distribution of sales useful for forecasting next
60
# times ordered

Thursdays late night demand

50

40 33
30 If you were the manager, how could you apply this
20
12 information?
8
10
0 0 1
0
1 2 3 4 5 6 7

Slices of Pizza

Scatter Diagram Scatter Plots

n It is used to determine the correlation between
two variables. It can show a positive correlation,
a negative correlation, or no correlation.
n Used to determine causal relationship between 2
continuous variables or two measurements;
n 2 Dimensional X/Y plots: independent(x) and
dependent(y) variables

Pizza Co. Example Pizza Co. Example

Minutes Cooking Defective Pies
25
10 1
45 8 20
Defective Pizzas

30 5
15
75 20
60 14 10

20 4
5
25 6
0
0 20 40 60 80
In this simple example, you can find the existing relationship without
much difficulty but Time Cooking (minutes)

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Pareto Chart Pareto Chart

o Named after Italian economist and sociologist
Vilfredo Pareto. (19th c. sociologist &
economist)
o Pareto charts are important because they can
help an organization decide where to focus
limited resources.
o Data are arrayed along an X-axis and a Y-
axis.
n A technique for prioritizing types or sources of
problems.
n Separates the vital few from the trivial many.
n Graphical bar charts, that rank causes from more
significant to least significant
n Graphical way of identifying few critical items as
opposed to many less important ones.

Pareto Analysis Pizza Co. Example

Slices Frequency %
0 1 0.3
o Very similar to
Histograms 1 33 13.09
2 65 25.79
3 8 3.17
o Use of percentages to
show importance 4 12 4.76
5 0 0
6 0 0
o Use of the 80/20 rule
7 1 0.3

Pizza Co. Example Flow Charts

n Used in a total quality setting for charting the inputs,
26%
70 steps, functions, and outflows of a process to understand
# times ordered

60 more fully how the function works and who or what has
50 input into and influence on the process, its inputs and
40 outputs, and even its timing.
13%
30 n A picture of a process that shows the sequence of steps
20
5%
performed.
3%
10 n Graphical tool used to trace the flow & sequence of
0 various operations of a process or event.
21 1
2 43 34 75 56 67 n Symbols have meanings

Slices of Pizza

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Flow Chart Basic Flow Chart

Symbols:
START DELAY

INPUT/ OUTPUT DECISION POINT

INSPECTION PROCESS
OPERATION

FLOW DIRECTION END

Flow Chart Example: Pizza Co. Example

START Take Customer Money?
Order
yes
no
Get Pizza

END
Put More in
Oven no 2 Pies
yes Available?

no
Time yes
to close?
Take to Customer

Cause & Effect Diagram Cause & Effect Diagram

o A graphical representation of an outline that
presents a chain of causes and effects.
o Developed by the late Dr. Kaoru Ishikawa, a
noted Japanese quality expert; others have
thus called it the Ishikawa diagram.
o Also known as Fish Bone Chart, or
Brainstorming Diagram. Each Bone (stem)
represents a possible source of error
o No statistics involved. It is one of the seven
basic quality tools that is not based on
statistics. (the other is the flowchart).
o Used to highlight main causes, minor causes,
& sub-causes leading to an effect (problem,
symptom, or the like)
o Used to discover possible location of quality
problems

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Cause & Effect Diagram Step 1: Identify the Main Problem

Step 2: Identify Major Causes that Step 3: Identify Minor Causes and
lead to the Problem Sub-Causes

Example 1: Example 1:
o Problem: company network is down

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Example 1: Example 2:
o Step 1 - Identify the Problem: High Inventory Shrinkage at local
store

Shrinkage

Example 2: Example 2:
o Step 2 - Identify different areas where problems may arise o Step 3 - Identify what the sub-causes could be
from
Ex. : Employees and Shoplifters
Shrinkage
employees Anti-theft tags poorly designed
Expensive merchandise out
in the open

Shrinkage No security/ surveillance

shoplifters

shoplifters

Example 2: Example 2:
employees o Step 4 Use the finished diagram to brainstorm solutions to
attitude the main problems.
training n Examples:
new trainee
o Prevent Shopliftting
benefits practices
n Install CCTVs
Shrinkage n Hire Security Guard
Anti-theft tags poorly designed n Replace anti-theft tags
Expensive merchandise out in the open

o Employees
No security/ surveillance
n Improve training program
n Re-train existing employees
shoplifters n Increase rewards and benefits

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Control Chart Statistical Process Control (SPC)

o A.k.a SPC Chart
o The backbone of SPC, and were first
proposed by W. Shewhart in 1924.
o It is used to identify effects of special causes.
o It displays the state of control of a process.
o The origin of SPC was in the work of Dr. Walter Shewhart at
Bell Laboratories 1931. Although SPC was ignored in the
West after World War II, Japan adopted and subsequently
developed it into total quality.
o SPC is a statistical method of separating special-cause
variation from natural variation to eliminate the special
causes and establish and maintain consistency in the process,
enabling process improvement .

Statistical Process Control (SPC) Control Charts

Upper Limit
o A total of 99.73% of the output of a process
that is in statistical control will fall within the
3 limits of the process.
o Continual improvement of processes requires X
that special causes be eliminated first.
Process improvement narrows the shape of
the processs bell curve, resulting in less Lower Limit
variation. Unacceptable
deviation

Control Charts Pizza Co. Example

Upper Limit
Pizza Co. Management wants to get in 17 inches
on the control chart action
Average Diameter = 16 inches 16 inches= X
Upper Limit = 17 inches
Lower Limit = 15 inches Lower Limit
15 Inches

Small Pie

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SUMMARY

Pizza Co. Example

Pies within specifications were acceptable
One abnormally small pie is uncommon
Should be examined for quality control

Other sources may include:

(Replacement for Flowchart or Check Sheet) Run-Chart
o Stratification Diagram o It records the output results of a process over time
n A technique that separates data gathered from a variety of thus it is also called a trend chart.
sources so that patterns can be seen (asq.org)
o Used to graphically depict the status of process
n Used to determine if an output is stratified according to a
category related to output over a period of time and the target.
n Vertical axis: Plots the number of defects,
o Run Charts measurements, characteristics, or proportion of
n In the context of the seven total quality tools, run charts and
defects.
control charts are typically thought of as being one tool
together. n Horizontal axis: Plots the time when measurements
n The weakness of the run chart is that it does not tell whether or defects where observed.
the variation is the result of special causes or common causes.

Run Chart Run Chart

Slices/hour
5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100

8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4 8 9 10 11 12 1 2 3 4 Time
PM- AM PM- AM PM- AM
Thursday Thursday Thursday
Week 1 Week 2 Week 3

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Practice Exercise
Make a flowchart for:

o Going to School or Going to Sleep

o Logging in to Facebook using a computer

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