The Seven Tools of Quality

OBJECTIVE

To recognise and be able to use the first seven tools

of quality management

Pareto Analysis Cause and effect

Flow chart 
Data collection Statistical Process Control

XX
X
X X
X X X
X X X
X X
X X X
X X X X
X X
Histograms Scatter diagrams
1 World Class Operations Management - 7 Tools of Quality
 Data Collection 1

Operator Machine No Date

Number of observations Total Percentage

Machine:

Error

2 World Class Operations Management - 7 Tools of Quality

 Data Collection 2

Eror prone distributers and forwarders plc

Date Total

Invoice Office
Customer contact 84
name error
Order error to
supplier
104
Credit allowance
error 126
Customer order
no error 67
Invoice to
customer error
213

Total

3 World Class Operations Management - 7 Tools of Quality

 Pareto Analysis 1

Collect the Data

Misspelling of customer name. 14

Customer contact name error. 84
Credit allowance error. 126
Customer order number error. 67
Wrong address 31
Invoice to customer error. 213
Order error to supplier 104
Error in customer address. 45
Incorrect goods despatched. 21
Timing of delivery error. 3
Misplaced - Lost customer invoice. 16
Other. 15
4 World Class Operations Management - 7 Tools of Quality
 Pareto Analysis 2

Rank in Descending Order

Invoice to customer error. 213
Credit allowance error. 126
Order error to supplier 104
Customer contact name error. 84
Customer order number error. 67
Error in customer address. 45
Wrong address 31
Incorrect goods despatched. 21
Misplaced - Lost customer invoice. 16
Other. 15
Misspelling of customer name. 14
Timing of delivery error. 3
Total 739
5 World Class Operations Management - 7 Tools of Quality
 Pareto Analysis 3

Calculate Cumulative Sum

Invoice to customer error. 213
Credit allowance error. 339
Order error to supplier 443
Customer contact name error. 527
Customer order number error. 594
Error in customer address. 639
Wrong address 670
Incorrect goods despatched. 691
Misplaced - Lost customer invoice. 707
Other. 722
Misspelling of customer name. 736
Timing of delivery error. 739
6 World Class Operations Management - 7 Tools of Quality
 Pareto Analysis 4

Calculate Percentage %
Invoice to customer error. 28.8
Credit allowance error. 45.9
Order error to supplier 59.9 Vital Few
Customer contact name error. 71.3
Customer order number error. 80.4
Error in customer address. 86.5
Wrong address 90.7
Incorrect goods despatched. 93.5
Misplaced - Lost customer invoice. 95.7 Trivial Many
Other. 97.7
Misspelling of customer name. 99.6
Timing of delivery error. 100
7 World Class Operations Management - 7 Tools of Quality
 Pareto Analysis 5

100 97.7 100

93.5
86.5 99.6
95.7
80.4 90.7
80

59.9 71.3
60

45.9
40

28.8
20

0
r. r .
r ss . .
erro p li
e
rro re oic
e
ame
er sup ere dd inv er
n
m t o b ga er m
usto r or num r on t om s to
c e r r W s u
t o e r r de t cu o fc
d o
oic e Or e r L os l l ing
Inv stom ed- s pe
s
Cu pl ac Mi
s
Mi

8 World Class Operations Management - 7 Tools of Quality

 Pareto and ABC Analysis 6

100
95
80

60
A B C
40

20

0
F H A I C B G J D E

9 World Class Operations Management - 7 Tools of Quality

 Process Flow Chart 1

START

OPERATION
or
STATEMENT

NO
DECISION

YES

END

10 World Class Operations Management - 7 Tools of Quality

 Process Flow Chart 2

START

ADJUST START CAN

FILLER FILLER

FILL
STOP LEVEL
FILLER NO OK?

YES

RUN
FILLER

END
11 World Class Operations Management - 7 Tools of Quality
 Process Flow Chart 3

Start

Did
Did Will you
Does anyone you
you mess get the
it No No are responsible No
with it? blame for it
work? for mess
anyway?
with it?

No
Yes Yes
Yes
Yes
Then don't
mess with it Can Dump it
You're
you hide No outside in
in the mire
it? the skip
then

Yes

Will
Hide it Resign you
Yes No You're fired
then then resign?

End

World Class Operations Management - 7 Tools of Quality

 Cause and Effect 1

The Possible Causes

aka
Ishikawa diagram The
Fishbone diagram Effect

The 4 Ps The 4 Ss The 4 Ms The 5 Ps

People Surroundings Men (People) People
Places Systems Machines Programmes
Procedures Suppliers Methods Plant (equipment)
Policies Skills Materials Product
Process
12 World Class Operations Management - 7 Tools of Quality
 Cause and Effect 2

Surroundings Skills
Trained staff
available
Layout

Slow
Service

Information
On time readily
deliveries available?

Suppliers Systems

Needs teams of people “brain storming” through the issues. Teams should be from
all the affected areas, that is ‘matrix teams’ aka ‘concurrent engineering’ teams.
Also known as quality circles.
13 World Class Operations Management - 7 Tools of Quality
 Scatter Diagrams 1

Date

Number of errors and time of day Total

Invoice Office 9 - 10 10 -11 11-12 12-13 13-14 14-15 15 -16 16-17

Customer contact 84
name error
Order error to
supplier 2 11 24 0 7 11 21 28 104
Credit allowance
error 3 13 29 0 9 14 25 33 126
Customer order
no error 1 7 14 0 5 9 14 17 67
Invoice to
customer error
3 31 44 0 13 17 43 62 213

Total 12 77 127 0 42 64 117 155 594

14 World Class Operations Management - 7 Tools of Quality

 Scatter Diagrams 2

150

Error Rate
100

50

9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

Time

Single days' observations

15 World Class Operations Management - 7 Tools of Quality

 Scatter Diagrams 3

150
Error Rate
100

50

0
9-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17

Time

4 days' observations

16 World Class Operations Management - 7 Tools of Quality

 We Covered

o The collection of data – appropriate data

o Five of the seven tools

o Pareto Analysis
o Flow Charting
o Check Charts
o Cause and Effect diagrams
o Scatter Diagrams

17 World Class Operations Management - 7 Tools of Quality