Chapter 7

TQM and Planning Tools

Objectives:

After reading this chapter, the student should be able to:

 Identify quality tools for planning
 Illustrate application of each quality planning tools.
 Apply planning tools in quality problems

There are several basic tools of quality can be used singularly or in tandem to investigate a
process and identify areas for improvement, although they do not all necessarily need to be
used. If a process is simple enough or the solution obvious enough any one may be all that is
needed for improvement. They provide a means for doing so based on facts, not just personal
knowledge, which of course can be tainted or inaccurate. Ishikawa advocated teaching these
basic tools to every member of a company as ameans to making quality endemic throughout the
organization. Different tools are used for different problem solving opportunities and many of
the tools can be used in different ways.

TQM Tools

Here follows a brief description of the basic set of Total Quality Management tools. They
are:
1. Pareto Principle
2. Scatter Plots
3. Control Charts
4. Flow Charts
5. Cause and Effect , Fishbone, Ishikawa Diagram
6. Histogram or Bar Graph
7. Check Sheets

CAUSE AND EFFECT/FISHBONE DIAGRAM

First used by Ishikawa in the 1940s, a cause and effect diagram, also known as a fish-
bone diagram is employed to identi9fy the underlying symptoms of a problem or effect as a
means of finding the root cause. The structured nature of the method forces the user to
consider all the likely causes of a problem, not just the obvious ones. Through the combination
of brainstorming techniques with graphical analysis it is also useful in sorting out the
complicated relationships that, may in combination, drive the problem.

It is called cause and effect diagrams after its function and fishbone diagram after its
appearance. It function s to identify the factors that are causing an undesired effect (defects) for
improvement action, or to identify the factors needed to bring about a desired result (winning
proposal). The factors are identified by people familiar with the process involved. As a starting
point, major factors could be designated using the four M’s; Method, Manpower, Material, and
Machinery or the 4 P’s, Policies, Procedures, People and Plant. Factors could be subdivided,
if useful, and the identification of significant factors is often an introduction tot the statistical
design of experiments. This tool is used in order to identify a problem's root causes. Typically
used for root cause analysis, a fishbone diagram combines the practice of brainstorming with a
type of mind map template and also called Ishikawa diagram

Cause–and–effect diagram introduced by Kaoru Ishikawa helps in identifying the various

causes (or factors) leading to an effect (or problem) and also helps in deriving meaningful
relationship between them. First used by Ishikawa in the 1940s, they are employed to identify
the underlying symptoms of a problem or “effect” as a means of finding the root cause.

The structured nature of the method forces the user to consider all the likely causes of a
problem, not just the obvious ones, by combining brainstorming techniques with graphical
analysis. It is also useful in unraveling the convoluted relationships that may, in combination,
drive the problem..

The very purpose of this diagram is to identify all root causes behind a problem.

Once a quality related problem is defined, the factors leading to the causal of the
problem are identified. We further keep identifying the sub factors leading to the causal of
identified factors till we are able to identify the root cause of the problem. As a result we get a
diagram with branches and sub branches of causal factors resembling to a fish bone diagram.

The importance of cause and effect diagram has a variety of benefits: It helps teams
understand that there are many causes that contribute to an effect. It graphically displays
the relationship of the causes to the effect and to each other. It helps to identify areas for
improvement. The essence of cause and effect, cause is the thing that makes other things
happen. Effect refers to what results. It is the happened next in the text that results from a
preceding cause. To put it concisely, cause is the why something happened and effect is the
what happened. . And to find cause and effect relationships, we look for one event that caused
another event. The cause is why the event happens. The effect is what happened. Sometimes
there can be more than one cause and effect.

Example:

If we eat to much food and do not exercise, we gain weight. Eating food without
exercising is the cause and the effect is weight gain and there may be multiple causes
and multiple effects.

In order to use cause and effect diagram as a tool, there is a need to first identify the
problem one is trying to solve and simply write it in the box ( head of the fish) to the right. Next,
he will list the major causes of the problem on the spine of the fish. Causes are then identified
during brainstorming with a group familiar with the problem.
 FISH BONE DIAGRAM EXAMPLE

Start using the fishbone diagram template and analyze process dispersion with this
simple, visual tool. The resulting diagram illustrates the main causes and sub causes leading to
an effect (symptom). Once all the possible causes are identified, they can be used to develop
an improvement plan to help resolve the identified problem. The Fishbone identifies the
possible causes of Iron Product.

The Pareto Chart

Vilfredo Pareto was economist who noted that a few people controlled most of nation’s
wealth. Pareto Law has also been applied to many other areas, including defects, where a few
causes are responsible for most of the problems.

A Pareto Chart A Pareto chart shows the ordered frequency counts for levels of a nominal
variable. Help people decide which problems to solve first. They are useful for identifying the most
frequent outcome of a categorical variable. The purpose of a Pareto diagram is to separate the
significant aspects of a problem from the trivial ones. By graphically separating the aspects of a
problem, a team will know where to direct its improvement efforts.

A Pareto chart is a special example of a bar chart. For a Pareto chart, the bars are
ordered by frequency counts from highest to lowest. These charts are often used to identify
areas to focus on first in process improvement.

Pareto charts show the ordered frequency counts of values for the different levels of a
categorical or nominal variable. The charts are based on the “80/20” rule. This rule says that
about 80% of the problems are the result of 20% of causes. This rule is also called the “vital few
and trivial many.” Again, the idea is that you can focus on a vital few root causes of the problem
and ignore the trivial many. 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
 The chart shows the types of finding from an audit of business processes. The most
common finding is that a standard operating procedure was not followed.

A Pareto chart is a bar graph of data showing the largest number of frequencies to the
smallest.
In this example, we are looking at the number of product defects in each of the listed categories.

When you look at the number of defects from the largest to the smallest occurrences, it is easy
to see how to prioritize improvements efforts.

The most significant problems stand out and can be targeted first.

The Pareto principle suggests that most effects come from relatively few causes. In
quantitative terms: 80% of the problems come from 20% of the causes (machines, raw
materials, operators etc.); 80% of the wealth is owned by 20% of the people etc. Therefore effort
aimed at the right 20% can solve 80% of the problems. Double (back to back) Pareto charts can
be used to compare 'before and after' situations. General use, to decide where to apply initial
effort for maximum effect.

A bar graph that shows which factors are more significant.

The very purpose of Pareto Chart is to highlight the most important factors that is the reason for
major cause of problem or failure.
Pareto chart is having bars graphs and line graphs where individual factors are represented by
a bar graph in descending order of their impact and the cumulative total is shown by a line
graph.

Scatter Diagrams

A scatter diagram is used to identify whether there is a relationship between two

variables. It does not prove that one variable directly affects the other, but is highly effective in
conforming that a relationship exist between the two. Variables often represent possible causes
and effect.

A scatter diagram is a graphical representation on how one variable changes with

respect to another. The variables are plotted on axes at right angles to each other and the
scatter in the point gives a measure of confidence in any correlation shown
A scatter diagram is effectively a line graph with no line - i.e. the point intersections
between the two data sets are plotted but no attempt is made to physically draw a line. The Y
axis is conventionally used for the characteristic whose behavior we would like to predict. Use,
to define the area of relationship between two variables.

The goal of Total Quality Management is to reduce the incidence of errors within manufacturing
and/or service processes. By doing this, companies will be able to effectively streamline any
changes by updating equipment and having fully trained employees. And, in turn, customers will
be more satisfied. But, companies cannot institute Total Quality Management without using the
right tools. So, here we discuss some of the top Total Quality Management (TQM) tools
available.

Graphs pairs of numerical data, one variable on each axis, to look for a relationship.
 Warning: There may appear to be a relationship on the plot when in reality there is none, or
both variables actually relate independently to a third variable.

Scatter Diagram Examples

a. Variable A is the temperature of a reaction after 15 minutes. Variable B measures the

color of the product. You suspect higher temperature makes the product darker. Plot
temperature and color on a scatter diagram.
b. Variable A is the number of employees trained on new software, and variable B is the
number of calls to the computer help line. You suspect that more training reduces the
number of calls. Plot number of people trained versus number of calls.
c. To test for autocorrelation of a measurement being monitored on a control chart, plot
this pair of variables: Variable A is the measurement at a given time. Variable B is the
same measurement, but at the previous time. If the scatter diagram shows correlation,
do another diagram where variable B is the measurement two times previously. Keep
increasing the separation between the two times until the scatter diagram shows no
correlation.

SCATTER DIAGRAM CONSIDERATIONS

 Even if the scatter diagram shows a relationship, do not assume that one variable caused the
other. Both may be influenced by a third variable.
 When the data are plotted, the more the diagram resembles a straight line, the stronger the
relationship.
 If a line is not clear, statistics (N and Q) determine whether there is reasonable certainty that a
relationship exists. If the statistics say that no relationship exists, the pattern could have
occurred by random chance.
 If the scatter diagram shows no relationship between the variables, consider whether the data
might be stratified.
 If the diagram shows no relationship, consider whether the independent (x-axis) variable has
been varied widely. Sometimes a relationship is not apparent because the data do not cover a
wide enough range


Check Sheets

A Check Sheet is a data recording form that has been designed to readily interpret
results from the form itself. It needs to be designed for the specific data it is to gather. Used for
the collection of quantitative or qualitative repetitive data. Adaptable to different data gathering
situations. Minimal interpretation of results required. Easy and quick to use. No control for
various forms of bias - exclusion, interaction, perception, operational, non-response, estimation.
A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted
for a wide variety of purposes.

A Checklist contains items that are important or relevant to a specific issue or situation.
Checklists are used under operational conditions to ensure that all important steps or actions
have been taken. Their primary purpose is for guiding operations, not for collecting data.
Generally used to check that all aspects of a situation have been taken into account before
action or decision making. Simple, effective.

A check sheet is a basic quality tool that is used to collect data. A check sheet might be
used to track the number of times a certain incident happens.
A check sheet can be metrics, structured table or form for collecting data. After this, it helps us
analyse the data. When the information is quantitative in nature, the check sheet can also be
called as tally sheet.

It lists down all the important data points and events. Then it presents them in a tabular
format. Thus, it keeps on updating or marking the status on their occurrence which helps in
understanding the progress, defect patterns and even causes for defects.

They are non-statistical and easy to understand. They help us capture data in a
standardised manner. This helps us to make decisions based on facts and not assumptions.
Data is graphically represented . Thus, one can analyse the areas for improvement , either
directly from the check sheet, or by feeding the data into one of the other seven basic tools.
 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.

It Helps to analyze the data for corrective and preventive actions. Helps in making the
Bar graph, Histogram and Pareto Chart. Helps to take decision at a glance to control the
product and process related non-conformance.

The check sheet is a simple document that is used for collecting data in real-time and at
the location where the data is generated. The document is typically a blank form that is
designed for the quick, easy, and efficient recording of the desired information, which can be
either quantitative or qualitative. When the information is quantitative, the check sheet is
sometimes called a tally sheet.

A defining characteristic of a check sheet is that data is recorded by making marks

(“checks”) on it. A typical check sheet is divided into regions, and marks made in different
regions have different significance. Data is read by observing the location and number of marks
on the sheet. 5 Basic types of Check Sheets:

 Classification: A trait such as a defect or failure mode must be classified into a category.
 Location: The physical location of a trait is indicated on a picture of a part or item being
evaluated.
 Frequency: The presence or absence of a trait or combination of traits is indicated. Also
number of occurrences of a trait on a part can be indicated.
 Measurement Scale: A measurement scale is divided into intervals, and measurements
are indicated by checking an appropriate interval.
 Check List: The items to be performed for a task are listed so that, as each is
accomplished, it can be indicated as having been completed.
Control Charts

The control chart also called Shewart Chart. 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. By comparing current data to
these lines, you can draw conclusions about whether the process variation is consistent (in
control) or is unpredictable (out of control, affected by special causes of variation). This
versatile data collection and analysis tool can be used by a variety of industries and is
considered one of the seven basic quality tools.

Control charts for variable data are used in pairs. The top chart monitors the average, or
the centering of the distribution of data from the process. The bottom chart monitors the range,
or the width of the distribution. If your data were shots in target practice, the average is where
the shots are clustering, and the range is how tightly they are clustered. Control charts for
attribute data are used singly.

Control charts are a method of Statistical Process Control, SPC. (Control system for
production processes). They enable the control of distribution of variation rather than attempting
to control each individual variation. Upper and lower control and tolerance limits are calculated
for a process and sampled measures are regularly plotted about a central line between the two
sets of limits. The plotted line corresponds to the stability/trend of the process. Action can be
taken based on trend rather than on individual variation. This prevents over
correction/compensation for random variation, which would lead to many rejects.
The next tool is a control chart. Data is historically plotted to see how processes have
changed over time. Control charts have a central line for the average, and an upper and lower
line that represents the upper and lower control limit respectively. The goal is to have all of the
processes tightly plotted along the center line. If processes data points are all over the place,
then the processes are statistically out of control.

Control charts or run charts are used to plot data points over time and give a picture of
the movement of that data.
These charts demonstrate when data is consistent or when there are high or low outliers in the
occurrences of 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
BASIC PROCEDURE

1. Choose the appropriate control chart for your data.

2. Determine the appropriate time period for collecting and plotting data.
3. Collect data, construct your chart and analyze the data.
4. Look for "out-of-control signals" on the control chart. When one is identified, mark it on
the chart and investigate the cause. Document how you investigated, what you learned,
the cause and how it was corrected.

Flow Charts

This tool is used when trying to determine where the bottlenecks or breakdowns are in
work processes.

Flow-charting the steps of a process provides a picture of what the process looks like
and can shed light on issues within the process.
Flowcharts are also used to show changes in a process when improvements are made or to
show a new workflow process.
 This example provides a picture so those checking children in will know the steps each
takes depending on whether it is their first time or a child who has been there before.
Pictures, symbols or text coupled with lines, arrows on lines show direction of flow. Enables
modelling of processes; problems/opportunities and decision points etc. Develops a common
understanding of a process by those involved. No particular standardisation of symbology, so
communication to a different audience may require considerable time and explanation.
Flow Charts can also assist with TQM since they allow managers to see how well processes
are flowing. This is done via pictures, words, etc., with arrows pointing to the next data flow
point. These data flow points include objectives, problems, solutions, etc.

Histogram or Bar Graph

Histograms are bar chart pictures of data that shows patterns that fall within typical
process conditions.
A Histogram is a graphic summary of variation in a set of data. It enables us to see
patterns that are difficult to see in a simple table of numbers. Can be analysed to draw
conclusions about the data set.

A histogram is a graph in which the continuous variable is clustered into categories and
the value of each cluster is plotted to give a series of bars as above. The above example
reveals the skewed distribution of a set of product measurements that remain nevertheless
within specified limits. Without using some form of graphic this kind of problem can be difficult to
analyse, recognise or identify.

The most commonly used graph for showing frequency distributions, or how often each
different value in a set of data occurs.

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

Use a histogram when:

 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
 Seeing whether a process change has occurred from one time period to another
 Determining whether the outputs of two or more processes are different
 You wish to communicate the distribution of data quickly and easily to others
A Check Sheet is a data recording form that has been designed to readily interpret results from
the form itself. It needs to be designed for the specific data it is to gather. Used for the collection
of quantitative or qualitative repetitive data. Adaptable to different data gathering situations.
Minimal interpretation of results required. Easy and quick to use. No control for various forms of
bias - exclusion, interaction, perception, operational, non-response, estimation.
A structured, prepared form for collecting and analyzing data; a generic tool that can be adapted
for a wide variety of purposes.

A Checklist contains items that are important or relevant to a specific issue or situation.
Checklists are used under operational conditions to ensure that all important steps or actions
have been taken. Their primary purpose is for guiding operations, not for collecting data.
Generally used to check that all aspects of a situation have been taken into account before
action or decision making. Simple, effective.
A check sheet is a basic quality tool that is used to collect data. A check sheet might be used to
track the number of times a certain incident happens.
A check sheet can be metrics, structured table or form for collecting data. After this, it helps us
analyse the data. When the information is quantitative in nature, the check sheet can also be
called as tally sheet.

It lists down all the important data points and events. Then it presents them in a tabular format.
Thus, it keeps on updating or marking the status on their occurrence which helps in
understanding the progress, defect patterns and even causes for defects.

They are non-statistical and easy to understand. They help us capture data in a standardised
manner. This helps us to make decisions based on facts and not assumptions. Data is
graphically represented . Thus, one can analyse the areas for improvement , either directly
from the check sheet, or by feeding the data into one of the other seven basic tools.