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What are the
New Seven Management Tools Affinity Diagrams
Inter Relationship Digragph
Tree Diagrams
Prioritization Matrix
Matrix DiagramProcess Decision Program Charts
Activity Network Diagram
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History of theNew Seven Q.C. Tools
Committee of J.U.S.E. - 1972
Aim was to develop more QCtechniques with design approach
Work in conjunction with original BasicSeven Tools
New set of methods (N7) - 1977
Slide 1 0f 2
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History of theNew Seven Q.C. Tools
Developed to organize verbal data
diagrammatically.Basic 7 tools effective for data analysis,process control, and quality
improvement (numerical data)Used together increases TQMeffectiveness
Slide 2 0f 2
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What are the Basic Seven Q.C. Tools?
Flow Charts
Run Charts
Histograms
Pareto Diagrams
Cause and Effect DiagramsScatter Diagrams
Control Charts
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Relation Between New SevenQ.C. Tools and Basic Seven
Tools
FACTS
Data
Numerical Data Verbal Data
Organize
The Seven New Tools
Information
The Basic Seven Tools
Generate Ideas
Formulate plans Analytical approach
Define problem aftercollecting numerical data
Define problem beforecollecting numerical data
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation,
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Enhanced Capabilities
Generate ideasImprove planning
Eliminate errors and omissionsExplain problems intelligiblySecure full cooperation
Persuade powerfully
Benefits of IncorporatingNew Seven Mgt Tools
Organize verbal data
Slide 1 0f 4
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Enhanced Keys to Organizational Reform
Clarify the desired situationPrioritize tasks effectively
Proceed systematically Anticipate future eventsChange proactively
Get things right the first time
Benefits of IncorporatingNew Seven Q.C. Tools
Assess situations from various angles
Slide 2 0f 4
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Five Objectives of Organizational Reform
which will establish a Culture that:
Gives importance to planning
Stresses the importance of the processPrioritizes tasksEncourages everyone to think
systematically
Benefits of IncorporatingNew Seven Q.C. Tools
Slide 3 0f 4
Identifies problems
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Benefits of IncorporatingNew Seven Mgt Tools
Unstructured Problem [must be put into solvable form]
Problem is mapped
Problem becomesobvious to all
Problem is in solvable form
Slide 4 0f 4
The Seven New Tools
Thoughts areeasily organized
Things go well
People understand problem
Cooperation isobtained
Countermeasuresare on target
Problem becomesobvious to all
Nub of problemis identified
Problem can beclearly articulated
Plans areeasily laid
Nothing isomitted
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 19
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New Seven Mgt Tools
Affinity Diagrams
For Pinpointing the Problem in a ChaoticSituation and Generating Solution Strategies
Gathers large amounts of intertwinedverbal data (ideas, opinions, issues)
Organizes the data into groups basedon natural relationshipMakes it feasible for further analysis
and to find a solution to the problem.
Slide 1 0f 7
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New Seven Mgt Tools
Affinity Diagrams
Advantages of Affinity Diagrams Facilitates breakthrough thinking andstimulate fresh ideasPermits the problem to be pinned downaccurately
Ensures everyone clearly recognizes theproblemIncorporates opinions of entire group
Slide 2 0f 7
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New Seven Mgt Tools
Affinity Diagrams
Advantages of Affinity Diagrams (cont.) Fosters team spiritRaises everyones level of awareness Spurs to the group into action
Slide 3 0f 7
Topic
Affinity StatementData CardData Card
Data CardData Card
Affinity StatementData CardData Card
Data CardData Card
Affinity StatementData CardData Card
Data Card
Affinity StatementData CardData Card
Data CardData Card
Data Card Data Card
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New Seven Mgt Tools
Affinity Diagrams
Constructing an Affinity DiagramGroup Method Approach
Slide 4 0f 7
Select a topic Collect verbal data by brainstormingDiscuss info collected until everyone
understands it thoroughlyWrite each item on separate data cardSpread out all cards on table
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New Seven Mgt Tools
Affinity Diagrams
Constructing an Affinity DiagramGroup Method Approach (cont.)
Slide 5 0f 7
Move data cards into groups of similarthemes (natural affinity for each other)Combine statements on data cards to
new Affinity statementMake new card with Affinity statementContinue to combine until less than 5groups
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New Seven Mgt Tools
Affinity Diagrams
Constructing an Affinity DiagramGroup Method Approach (cont.)
Slide 6 0f 7
Lay the groups outs, keeping the affinityclusters together
Next, complete the diagram
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New Seven Mgt Tools
Affinity Diagrams
Completing an Affinity DiagramSlide 7 0f 7
Topic Affinity Statement
Data CardData Card
Data CardData Card
Affinity Statement
Data CardData Card
Data CardData Card
Affinity Statement
Data CardData Card
Data Card
Affinity Statement
Data CardData Card
Data CardData Card
Data Card Data Card
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 19
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New Seven Mgt Tools
Relations Diagrams
For Finding Solutions Strategies by ClarifyingRelationships with Complex Interrelated Causes
Resolves tangled issues by unravelingthe logical connection
Allows for Multi -directional thinkingrather than linear
Also known as Interrelationship
diagrams
Slide 1 0f 7
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New Seven Mgt Tools
Relations Diagrams
Advantages of Relations Diagrams (cont.) Makes the problem recognizable by
clarifying the relationships among causes
Slide 3 0f 7
Why doesnt X happen?
Primary Cause
Primary Cause
Primary Cause
Primary Cause
TertiaryCause
Secondary
Cause
SecondaryCause
SecondaryCause
Secondary
Cause
TertiaryCause
4th levelCause
TertiaryCause
TertiaryCause
4th levelCause 5th levelCause
6th levelCause
TertiaryCause
SecondaryCause
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New Seven Mgt Tools
Relations Diagrams
Constructing a Relations DiagramGroup Method Approach
Slide 4 0f 7
Express the problem in form of Whyisnt something happening? Each member lists 5 causes affectingproblem
Discuss info collected until everyoneunderstands it thoroughly
Write each item on a card
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New Seven Mgt Tools
Relations Diagrams
Constructing a Relations DiagramGroup Method Approach (cont.)
Slide 5 0f 7
Move cards into similar groups Asking why, explore the cause-effectrelationships, and divide the cards into
primary, secondary and tertiary causesConnect all cards by these relationshipsFurther discuss until all possible causes
have been identified
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New Seven Mgt Tools
Relations Diagrams
Constructing a Relations DiagramGroup Method Approach (cont.)
Slide 6 0f 7
Connect all related groups
Next, complete the diagram
Review whole diagram looking forrelationships among causes
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New Seven Mgt Tools
Relations Diagrams
Completing a Relations DiagramSlide 7 0f 7
Why doesnt X happen?
Primary Cause
Primary Cause
Primary Cause
Primary Cause
TertiaryCause
SecondaryCause
SecondaryCause
Secondary
Cause
SecondaryCause
TertiaryCause
4th levelCause
TertiaryCause
TertiaryCause
4th level
Cause5th level
Cause
6th levelCause
TertiaryCause
SecondaryCause
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 19
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New Seven Mgt Tools
Tree Diagrams
For Systematically Pursuing the Best Strategiesfor Attaining an Objective
Develops a succession of strategies forachieving objectives
Reveals methods to achieve the results. Also known as Systematic diagrams orDendrograms
Slide 1 0f 5
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New Seven Mgt Tools
Tree Diagrams
Advantages of Tree Diagrams Systematic and logical approach is less
likely that items are omittedFacilitates agreement among team
Are extremely convincing with strategies
Slide 2 0f 5
ToAccomplish
Primary means
Constraints
Secondary means
Secondary means3rd means3rd means3rd means
3rd means
4th means4th means
4th means4th means4th means4th means4th means
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Discuss means of achieving objective(primary means, first level strategy)
New Seven Mgt Tools
Tree Diagrams
Constructing a Tree DiagramGroup Method Approach
Slide 3 0f 5
Write Relations Diagram topic (Objectivecard)
Identify constraints on how objectivecan be achieved
Take each primary mean, write ob- jective for achieving it (secondary means)
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Tree Diagrams
Constructing an Tree DiagramGroup Method Approach (cont.)
Slide 4 0f 5
Continue to expand to the fourth levelReview each system of means in bothdirections (from objective to means and means toobjective)
Add more cards if neededConnect all levels
Next, complete the diagram
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New Seven Mgt Tools
Tree Diagrams
Completing a Tree Diagram Slide 5 0f 5
ToAccomplish
3rd means
3rd means
Primary means
3rd means
3rd means
Constraints Primary means
Secondary means
Secondary means
Secondary means
Secondary means
3rd means
3rd means
3rd means
3rd means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)
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New Seven Mgt Tools
Matrix Diagrams
For Clarifying Problems by ThinkingMultidimensionally
Consists of a two-dimensional array todetermine location and nature ofproblemDiscovers key ideas by relationshipsrepresented by the cells in matrix.
Slide 1 0f 7
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Matrix Diagrams
Advantages of Matrix Diagrams
Enable data on ideas based on extensiveexperienceClarifies relationships among differentelements
Makes overall structure of problemimmediately obviousCombined from two to four types of
diagrams, location of problem is clearer.
Slide 2 0f 7
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Matrix Diagrams
Advantages of Matrix Diagrams (cont.) 5 types: L-shaped, T-shaped, Y-shaped, X-
shaped, and C-shaped
Slide 3 0f 7
O O =1 O =4 PrincipalO =2 O X =5 O Subsidia ry
=3 X =6
E f f i c a c y
P r a c
t i c a
b i l i t y
R a n
k
S i t e
Q C c
i r c
l e
S e c
t i o n
/ P l a n
t
Q C c
i r c l e s u p p o r t e r
S e c
t i o n
/ P l a n
t
M a n a g e r
L e a
d e r
M e m
b e r
4th level meansfrom Tree diagram O O 1 O
4th level meansfrom Tree diagram O O 1 O Hold 4 times/month
4th level meansfrom Tree diagram O 3 O At every meeting
4th level meansfrom Tree diagram O 2 O
4th level meansfrom Tree diagram O X 5 O At least 3 times/y ear/person
4th level means
from Tree diagram O O 1 O O4th level means
from Tree diagram 4 O
Evaluation Responsibilities
Remarks
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New Seven Mgt Tools
Matrix Diagrams
Constructing a Matrix DiagramSlide 4 0f 7
Write final-level means from Treediagram forming vertical axisWrite in Evaluation categories (efficacy,practicability, and rank) on horizontal axis.
Write names along horizontal axis
Examine final-level means to identifywhom will implement them
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New Seven Mgt Tools
Matrix Diagrams
Constructing a Matrix Diagram (cont.) Slide 5 0f 7
Label group of columns as Responsibilities
Label right-hand end of horizontal axisas Remarks Examine each cell and insert the
appropriate symbol:Efficacy: O=good, =satisfactory, X=none
Practicability: O=good, =satisfactory, X=none
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New Seven Mgt Tools
Matrix Diagrams
Constructing a Matrix Diagram (cont.) Slide 6 0f 7
Fill out remarks column and recordmeanings of symbol
Next, complete the diagram
Examine cells under Responsibility Columns, insert double-circle for
Principal and single-circle for Subsidiary
Determine score for each combinationof symbols, record in rank column
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New Seven Mgt Tools
Arrow Diagrams
For Working Out Optimal Schedules andControlling Them Effectively
Shows relationships among tasksneeded to implement a planNetwork technique using nodes forevents and arrows for activitiesUsed in PERT (Program Evaluation and Review
Technique) and CPM (Critical Path Method)
Slide 1 0f 7
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Arrow Diagrams
Advantages of Arrow Diagrams Allows overall task to viewed and potentialsnags to be identified before work startsLeads to discovery of possibleimprovements
Makes it easy to monitor progress of workDeals promptly with changes to planImproves communication among team
Slide 2 0f 7
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New Seven Mgt Tools
Arrow Diagrams
Advantages of Arrow Diagrams (cont.) Promotes understanding and agreement
among group
Slide 3 0f 7
Strategy
1
Constraints
Activity
2
4
3 5 9
6 8
7
10 13
12
11
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Arrow Diagrams
Constructing an Arrow DiagramSlide 4 0f 7
From strategies on Tree diagram, selectone (Objective of Arrow Diagram) Identify constraints to Objective
Write all essential activities on separatecards
List all activities necessary to achievingObjective
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New Seven MgtTools
Arrow Diagrams
Constructing an Arrow Diagram (cont.) Slide 5 0f 7
Organize cards in sequential order of
activitiesRemove any duplicate activitiesReview order of activities, find
sequence with greatest amount ofactivities Arrange parallel activities
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Arrow Diagrams
Constructing an Arrow Diagram (cont.) Slide 6 0f 7
Record names and other necessaryinformation
Next, complete the diagram
Examine path, number nodes insequence from left to right
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New Seven Mgt Tools
Arrow Diagrams
Completing an Arrow Diagram Slide 7 0f 7
Strategy
1
Constraints
Activity
2
4
3 5 9
6 8
7
10 13
12
11
Source: Nayatani, Y.,The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)
New Seven Mgt Tools
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g
Process Decisions ProgramCharts
For Producing the Desired Result from ManyPossible Outcomes
Used to plan various contingenciesUsed for getting activities back on track
Steers events in required direction ifunanticipated problems occurFinds feasible counter measures to
overcome problems
Slide 1 0f 7
New Seven Mgt Tools
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Advantages of Process Decisions ProgramCharts (PDPCs)
Facilitates forecastingUses past to anticipate contingenciesEnables problems to pinpointed
Illustrates how events will be directed tosuccessful conclusionEnables those involved to understand
decision-makers intentions
Slide 2 0f 7
g
Process Decisions ProgramCharts
New Seven Mgt Tools
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Advantages of PDPCs (cont.)Fosters cooperation and communication in
groupEasily modified and easily understood
Slide 3 0f 7
g
Process Decisions ProgramCharts
Start
GOAL
YES YES
NO NO NO
NO
NO
YES
NO NO
New Seven Mgt Tools
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Constructing a PDPCSlide 4 0f 7
Select a highly effective, but difficultstrategy from the Tree diagram Decide on a goal (most desirable outcome)
Identify constraints of objectiveIdentify existing situation (Starting point)
g
Process Decisions ProgramCharts
List activities to reach goal and potentialproblems with each activity
New Seven MgtTools
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Constructing an PDPC (cont.) Slide 5 0f 7
Review list. Add extra activities or
problems not thought of previouslyPrepare contingency plan for each stepand review what action is needed if
step is not achievedExamine carefully to check forinconsistencies and all important factors
are included
g
Process Decisions ProgramCharts
New Seven Mgt Tools
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Constructing an PDPC (cont.) Slide 6 0f 7
Next, complete the diagram
Examine to make sure all contingencyplans are adequate
g
Process Decisions ProgramCharts
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New Seven MgtTools
Matrix Data Analysis
Principal Component Analysis
Technique quantifies and arranges data
presented in MatrixBased solely on numerical dataFinds indicators that differentiate andattempt to clarify large amount ofinformation
Slide 1 0f 6
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New Seven Mgt Tools
Matrix Data Analysis
Advantages of Principal Component Analysis
Can be used in various fields (market surveys,new product planning, process analysis)
Can be when used when Matrix diagramdoes not give sufficient information
Useful as Prioritization Grid
Slide 2 0f 6
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New Seven Mgt Tools
Matrix Data Analysis
Constructing a Prioritization GridSource: Foster, S.,Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
Slide 3 0f 6
Determine your goal, your alternatives,and criteria for decisionPlace selection in order of importance
Sum individual ratings to establishoverall ranking (Divide by number of optionsfor average ranking)
Apply percentage weight to each option(all weights should add up to 1)
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New Seven Mgt Tools
Matrix Data Analysis
Constructing a Prioritization Grid (cont.) Slide 4 0f 6
Rank order each option with respect to
criterion (Average the rankings and apply acompleted ranking) Multiply weight by associated rank inMatrix (in example, 4 is best, 1 is worst) Result is Importance Score
Add up Importance Scores for eachoption
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Matrix Data Analysis
Constructing a Prioritization Grid (cont.)Slide 5 0f 6
See completed the diagram
Rank order the alternatives according toimportance
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Completing a Prioritization GridSlide 6 0f 6
New Seven Mgt Tools
Matrix Data Analysis
Source: Foster, S., Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
Cost Re lia bilityOpt ions
Design A
.30 .203 3
.90 .60 3.2 1 (tie)
Design B.40 .104 1
1.6 .10 3.0 2
Design C
.25 .252 4
.50 1 2.5 3 Design D
.10 .201 3
.10 .60 3.2 1 (tie)
1.05 .75.26 .192 4
ImportanceSum Score
OptionRanking(least important)
Strength
Importance s coreRank
Percentage weight
Percentage weightRank
Importance s core
Percentage weightRankImportance s core
Percentage weightRank
Importance s core
Sum of weights Average weightCriterion Ranking
Customer Acceptance(most important)
.404
1.6
.303
.90
.251
.25
0.33
.90
1.25
2.40
.25
.75
.101
.10
.20
.95
.243
Criteria
.404
3
1.6
.311
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Review New Seven Mgt Tools
Affinity Diagrams
Inter Relationship Digraph
Tree Diagrams
Priorization Matrix
Matrix DiagramsProcess Decision Program Charts
Activity Network Diagram
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Mental Attitudes- Keen awareness to the actual problem
- Eagerness to solve problem- Be highly motivated for the challenge
Keys to Successfully Using theNew Seven Mgt Tools
Slide 1 0f 5
Four Specific Keys Understand the problem Select the right tool for the job Obtain appropriate verbal data Interpret analytical results
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Keys to Successfully Using theNew Seven Mgt Tools
Slide 2 0f 5
Understand the problemStage 1 - problem is unclear and not obvious
what exact issue should be addressedStage 2 - problem is obvious, but causes unknown
explore causes and single out valid onesStage 3 - problem and causes are known
required action is unknownstrategies and plan must be developed
4 Specific Keys
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Keys to Successfully Using theNew Seven Mgt Tools
Slide 4 0f 5
Obtaining appropriate verbal data
Three types of verbal data:- Facts ; factual observations expressed in words- Opinions ; factual information colored by opinion - Ideas ; New concepts created by analyzing facts
.Group Discussions:- Ensures common understanding- All data should be without bias or distortion- Data should fit objective of the analysis
4 Specific Keys (cont.)
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Keys to Successfully Using theNew Seven Mgt Tools
Slide 5 0f 5
Interpreting Analytical ResultsInformation must be obtained for accomplishingobjectives from:
- Completed diagrams ; or- Process of completing diagrams
Analyze actual information obtained:- Prepare summarized report with findings,
conclusions, and processes used- Check if necessary data has been obtained, if not
- Discover the cause and take appropriate action
4 Specific Keys (cont.)
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Practical Application ofNew Seven Mgt Tools
Slide 1 0f 5
Complete the following Relations Diagram- Review notes for clarity- Get in groups of 4-5 per table (work as a team!)- Topic - Using the New Seven QC Tools skillfully - Cause cards - will be provided (not categorized)- Arrange cards to complete diagram
(some hints have been provided)
Exam ple; Relations Diagram Abilities Required for Applying New Seven MgtTools
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Practical Application ofNew Seven Mgt Tools
Slide 2 0f 5 Abilities Required for Applying New Seven QC Tools
Use N7Skillfully
PrimaryCause
PrimaryCause
PrimaryCause
PrimaryCause
Source: Foster, S.,Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
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Practical Application ofNew Seven Mgt Tools
Slide 3 0f 5
Abilities Required for Applying New Seven Mgt Tools Cause Statements (hints are in yellow)
A Interpret data clearly N Understand seriousness of problem
B Select appropriate tool O Think flexibly from various standpointsC Think systematically P Obtain appropriate verbal dataD Give opinions Q Expose core of problemE Know what the problem is R Communicate wellF Extract necessary information S Accurately understand real problemG Collect reliable verbal data T Have excellent intuitionH Think multidimensionally U See to heart of problemI Obtain facts V Select appropriate type of verbal dataJ Interpret analytical results W Think in terms of word-based diagramK Generate ideas X Express genuine thoughtsL Know that distorted data is useless Y Hear and respect other's opinionsM Grasp overall pictured Z Generate highly accurate verbal data
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Practical Application ofNew Seven Mgt Tools
Slide 4 0f 5 Abilities Required for Applying New Seven QC Tools
Use N7Skillfully
PrimaryCause
PrimaryCause
PrimaryCause
B
T
R
Y
F
I
L
Source: Foster, S.,Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
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Practical Application ofNew Seven Mgt Tools
Slide 5 0f 5 Solution for Abilities Required for Applying New Seven QC Tools
Use N7Skillfully
E
W J
P
B
T
H R
C
ZY
O
A
M
F S U
N
V
KD
I Q
LX
G
Source: Foster, S.,Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
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SummaryNew Seven Mgt Tools
1- Provide Training in Thinking
2- Raise Peoples Problem Solving Confidence 3- Increase Peoples Ability to Predict Future Events
Benefits of New Seven Mgt Tools
1- Express verbal data diagrammatically2- Make information visible3- Organize information intelligibly4- Clarify overall picture and fine details
5- Get more people involved
Roles of New Seven Mgt Tools
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Bibliography
Foster, Thomas. Managing Quality. An Integrative Approach.Upper Saddle River : Prentice Hall, 2001.
Nayatani, Yoshingobu, Eiga, Toru, Futami, Ryoji, Miyagawa,Hiroyuki, and Loftus, John. The Seven New QC Tools: Practical
Applications for Managers. Tokyo : 3A Corporation, 1994.
TQM: The 9 TQM Tools. Internethttp://www.iqd.com/pfttools.htm.
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