New 7 Tools Material - 2010

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a b c
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Nathan & Nathan Consultants Pvt. Ltd.
Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Introduction
 Extension of & 7 QC Tools
 Established in 1977 by Japanese Committee Headed by

Mr. Yoshinobu Nayatani
 Tools for Middle Management & Top Management
 Tools used for Strategic Planning, Goal Setting and

Problem Solving
 Developed to Organize Verbal data Diagrammatically
 Not a replacement of 7 QC Tools

2
Relation Between New 7 Tools & 7 QC Tools
Fact
Data
Mostly Numerical Data Mostly Verbal Data
7 QC Tools New 7 Tools
• Analytical Approach • Generate Ideas

• Decision on result Organize • Decision on Plan
Information
Decision

3
List of New 7 Tools
1) Affinity Diagram
2) Relations Diagram
3) Tree Diagram
4) Matrix Diagram
5) Matrix Data Analysis
6) Process Decision Program Chart
7) Arrow Diagram

4
Affinity Diagram

5
Affinity Diagram
 It is a tool/method that gathers large amount of

intertwined verbal data or ideas
 Normally a time consuming process. It is not used for

simple problems
 It is an innovative tool, creatively used
 Helps to understand & discover problems

6
Affinity Diagram
 It is based on verbal data hence not quantifiable
 Only overall idea of a problem situation & possible

solutions can be arrived at
 Gives clarity in confused situations
 Analysis is based on creativity & gut feeling to explore

rather than logic

7
Affinity Diagram : When to use?
 When we explore in to unknown areas
 When we want to adopt or modify existing system
 When we want to unify thinking of diverse group of

people
 When we want proper or thorough communication of new

ideas or policies
 When facts & thoughts are not clear

8
Affinity Diagram : How to use?
Select the Team Explain the issue Generate & record

to group clearly ideas
Sort the cards into Transferring ideas

Create Header cards &
groups into cards
display the final setup

9
Examples
• When establishing a new factory
• When establishing a new policy
• For launching of a new project, new concept.
• When problems could not be clearly pointed out
• When the issue focused is too large or complex
• When management wants to know view of employees

10
Illustration
Affinity Diagram for Wining a Cricket Match
Discipline Batting Fielding
Should be
Respecting Keeping the Go for big athletic
The captain’s wickets intact shots during
decisions upto 30 overs fielding Not to drop
& actions & keep scoring restriction catches
Good running For spinners Good wicket

Practicing keeping
between do not hit on
seriously
wickets with air
at the nets Avoid
out run-out
boundaries

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Illustration
Affinity Diagram for Wining a Cricket Match
Bowling Captaincy
Not to give
Plan the Place
extras
game proper field
Not to
Judiciously Analyze
deliver
rotate opponents
loose balls
bowlers and plan
Maintain strategy
Carry team
good length
with you
& line
Back
12
Relations Diagram

13
Relations Diagram
 Also known as Interrelationship Diagram
 It is a tool for finding solution to problems that have

complex causal relationship.
 It helps to untangle and find the logical relations among

the intertwined causes and effects.
 It is a creative process which allows for Multi-directional

rather than linear thinking to be used.

14
Relations Diagram
 In many respects Relations diagram is similar to Cause

and Effect Diagram.
 Main difference is, in C & E diagram we predetermine the major

causes but in relations diagram we carry out the process first
through which the major factors are identified later.

15
Comparison Between Relations Diagram & Affinity Diagram
Affinity Diagram Relations Diagram

Creative thinking is used Logical thinking is used
It dwells on what & how to do a Prepared through a logical

task, which and what areas to reasoning of case relationship
tackle of issues
Does not seek a direct solution Provides direct solution
Arrangement of complex problems, In a way it can be called as

affinity wise to look at the problem modified C&E Diagram
in a broader perspective and arrive
at a solution

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Relations Diagram : When to use?
 Used when normal methods do not yield results
 Applicable when issues are complicated
 Where various factors number of agencies involved for a

give task
 Where multiple objectives are involved in an

issue/problem with many agencies

17
Relations Diagram : How to use?
Team formation
Preparatory meeting
Selecting the problem
• From Affinity
Diagram
• From C&E
Diagram
Draw
Relations
Diagram
Use cards for Brainstorm & generate Allow some time
each idea ideas
if data/info. to
be collected

18
Examples
• Policy Management
• Total Quality Control Advancement
• Introduction of New Product
• Service Complaints
• Plant Quality Problems

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Illustration

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Interpretation
1) Check Point : Arrow in. (i.e. Effect)

Service
interruptions
2) Control Point : Arrow out. (i.e. Cause)
New
software
3) Transparent Point : Arrows in & out. (i.e. Cause)
Telecommunications
change

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Advantages
i. Helps to simplify complex problem
ii. We can also convert it into C&E Diagram once causal

factors & their relations established
iii. It enables to find out the responsibilities of various

agencies in the activity process
iv. We can go to the root cause
v. We can break issues in to sub-factors

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Disadvantages
i. Has no prescribed format hence different groups come
out with different pictures
ii. Some times it can be very complex, one has to

patiently draw putting down details appropriately
iii. It is time consuming
iv. If authentic data not collected, whole exercise will be

useless
v. More often it requires redrawing for deeper study of the

problem
Back
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Tree Diagram

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Tree Diagram
 It is a technique for mapping out full range of paths &
tasks that need to be done in order to achieve a
primary and related sub goals
 It revels in a simple way with clarity not only the

magnitude of the problem but also helps to arrive at the
methods which are to be persuaded to achieve the
results
 There are two ways of questioning from objective to

means
 To achieve the goal, what is the most necessary means?
 Can the principle goal be really achieved by this means or partially
achieved?

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Why Tree Diagram?
• In which order we should take up the key issues of the
problem to get full benefits?
• What are the sub factors of the key issues?
• Whether plan of actions is sequential?
• How difficult the implementation process will be?
• How many tasks and options will be the out come of each
key issues

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Tree Diagram: When to use?
 When you take up a new job or assignment
 When management wants to implement a new order
 For tasks needed special attention
 Delay in fulfilling commitment
 When the customer requirement is very high

27
Tree Diagram: When to use?
 Developing a new product
 While developing new solutions to problem
 For developing an objective
 To clarify the functions

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Tree Diagram: How to use?
 Identify the task
 Select a team
 Generate the ideas
 Arrive at primary means or causes (Use affinity or

Relations diagram)
 Once the Primary means or cause is available, arrange

them secondary, tertiary, quaternary etc
 Now review the completed diagram for logical flow.

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Illustration
Tree Diagram to improve customer satisfaction in a hotel

Quality Ingredients Fresh Food
Good
Food
Good Recipe New Recipe
Good Promote Attention

Satisfied
Service
Customer
Professional Waiter Cleaned Table
cloth
Happy atmosphere
Show light
Pleasant Good table above the table
Surrounding presentation
Comfortable
Pleasing decor chairs
Back
30
Matrix Diagram
a b c d
1
2
3
4

31
Matrix Diagram
 A Matrix diagram consists of a number of columns and

rows.
 Intersection of row and column represents strengths or

weakness of relationships
 This enables multi dimensional relationship analysis.
 It helps in identifying logical relationship

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Matrix Diagram: When to use?
 To establish ideas conceived for the development and

improvement of product system
 To chart Quality deployment in product materials
 To establish ISO 9000 certification system by linking

Quality with various levels of central functions

33
Matrix Diagram: When to use?
 To establish strategies to find out market view on product

mix
 To show relations between required Quality level and

control functions established.
 To prioritize among the many tasks given by comparison

34
Matrix Diagram: How to use?
 Select the important aspects or variables
 Form a group
 Decide type of Matrix to be used
 Decide the symbols to be used
 Prepare a matrix of variables

35
Types of Matrix Diagram
1) L-Type: Relates two set of variables
Item A Item B Item C
Item 1
Item 2
Item 3
Item 4
Compares one list against other

36
2) T-Type: Relates three set of variables
Item 1 Item 2 Item 3 Item I Item II Item III
Item A
Item B
Item C
Compares one list against two other in pair

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3) Y-Type: Relates three set of variables
Compares three lists, each against one another, in pair

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4) C-Type: Relates three set of variables
Compares three lists against one another, simultaneously

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5) X-Type: Relates four set of variables

Item A
Item B
Item C
Item III
Item 3
Item 2
Item 1
Item II
Item I
Item a
Item b
Item c
Compares four lists, each against two others, in pair

40
Illustration
HR department wants to investigate effect of soft-skills

training on social activities
Soft Skill Courses Social Activities
Team Negotiatio
Assertiveness Building n Names Tennis Football Acting Riding
Michael Jordan
Richie Valens
Dawn Simmons
Dave Morgan
Gwen Kai
Back
41
Matrix Data Analysis
a b c

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Matrix Data Analysis
 This is an extension of Matrix diagram
 Matrix data analysis is a multivariate analysis technique

called Principal component analysis
 This technique quantifies and arranges data presented in

a matrix diagram
 Often replaced with Prioritization Matrix

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Matrix Data Analysis: When to use?
 When comparing multiple items to multiple characteristics
 To find groups of logically different items which have

similar factor effects
 To determine whether or not logically similar items also

have similar factor effects
Back
44
Process Decision Program Chart
(PDPC)
Plan Risk Countermeasure

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Process Decision Program Chart
 The PDPC is a very useful and powerful method to
overcome a problem or a goal to be achieved which are
not familiar.
 With the help of PDPC, we can map out all the

conceivable events.
 We can map contingency plan.
 Identifies potential problems & countermeasures in the

plan

46
PDPC: When to use?
 Process wherein a failure or problem could be very
serious
 A project wherein the implementation processes is very

complex.
 Tasks which are altogether new or unique
 When new plan or policy has to be implemented
 When a major event is predicted and we need to be

prepared for it.

47
PDPC: How to use?
 Select the plan for which potential problems/risks and

countermeasures to be identify
 Make a team which includes,
• High level managers
• Experts in specific elements of the plan who can see potential
problems with planned action
• People who will be involved during implementation of the plan
 Brainstorm about what could go wrong and list down
potential risks
 Discuss & decide practical countermeasures for all
potential risks

48
Illustration
A dress production team at a clothes manufacturer was improving the

cutting-out process in order to minimize material wastage
PDPC Illustration

49
Advantages
• PDPC looks at the entire process as a whole and

enables us to make a full action plan
• We can see the entire process, how it moves in a

chronological order.
• PDPC is not too technical. Anyone who knows the

process and system can easily follow and understand.
• This will also highlight fundamental problems which were

not visualized earlier
Back
50
Arrow Diagram

51
Arrow Diagram
 It is a network technique using Nodes for events and

Arrows for activities
 It is very useful tool when we want to plan the activities of

a known but a complex task or project.

52
Arrow Diagram: When to use?
 Annual shutdown of a plant for maintenance
 Successful conduct of marriage
 Introduction of TQM in an organization
 Implementation of New project
 Construction of a house

53
Definitions
• Event or Node – Nodes correspond to the events in a
project. A circle generally indicates event number in a
project.
• Job or Task – Activities to be carried out. Arrows

represent activities.
• t = Time for the activity event 7 & 8

t
7 8

54
Definitions
• Preceding job – A preceding job or an activity is a task

that needs to be completed before starting of another
task.
• Succeeding job – Task that cannot be started until the

earlier one is completed.

55
Example
Doors windows
5
T=20 days
Walls Structure
Foundation & RCC Plastering, Finish,
construction Complete
roofing whitewash
1 2 3 4 6 10
T=25 days
T=30 days T=20 days
1 2 = 20
Plumbing Trial tests
2 3 = 30 7 9
70 days T=5 days
T=15 days
3 4 = 20
Electrical Trial
4 5 10 = 20 works tests
= 25 8
4 6 10 T=10 days
25
4 7 9 10 = 20 days
4 8 9 10 = 10

56
Arrow Diagram: How to use?
 Select a Team
 Make clear the purpose of making Arrow Diagram. Give

some time to think or collect data.
 Generate events & activities and arrange them

accordingly.
 Scrutinize whether some of activities can be merged or

diverged.

57
Arrow Diagram: How to use?
 Fit parallel paths after brain storming.
 Decide time duration for each activity
 Find out the shortest possible implementation schedule.

This depends upon longest cumulative duration of any
path, which is called Critical path.
 Review Arrow diagram

58
Illustration
7 10 33 38 38 42
C 3 I 5 K 4
22 25 33 38 38 42
0 3 3 7 25 33 42 46
A 3 B 4 H 8 M 4
0 3 3 7 25 33 42 46
17 25
E 8
33 38 38 40
17 25
7 17 J 5 L 2
D 10 35 40 40 42
7 17
17 21
F 4
21 25
17 23
G 6
19 25
Back
59

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a b c

Nathan & Nathan Consultants Pvt. Ltd.

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 Established in 1977 by Japanese Committee Headed by

 Tools for Middle Management & Top Management

 Tools used for Strategic Planning, Goal Setting and

 Developed to Organize Verbal data Diagrammatically

 Not a replacement of 7 QC Tools

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Mostly Numerical Data Mostly Verbal Data

7 QC Tools New 7 Tools

• Analytical Approach • Generate Ideas

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 It is a tool/method that gathers large amount of

 Normally a time consuming process. It is not used for

 It is an innovative tool, creatively used

 Helps to understand & discover problems

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 It is based on verbal data hence not quantifiable

 Only overall idea of a problem situation & possible

 Gives clarity in confused situations

 Analysis is based on creativity & gut feeling to explore

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 When we want to adopt or modify existing system

 When we want to unify thinking of diverse group of

 When we want proper or thorough communication of new

 When facts & thoughts are not clear

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Select the Team Explain the issue Generate & record

Sort the cards into Transferring ideas

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

• When establishing a new factory

• When establishing a new policy

• For launching of a new project, new concept.

• When problems could not be clearly pointed out

• When the issue focused is too large or complex

• When management wants to know view of employees

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Affinity Diagram for Wining a Cricket Match

Discipline Batting Fielding

Good running For spinners Good wicket

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Affinity Diagram for Wining a Cricket Match

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 Also known as Interrelationship Diagram

 It is a tool for finding solution to problems that have

 It helps to untangle and find the logical relations among

 It is a creative process which allows for Multi-directional

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 In many respects Relations diagram is similar to Cause

 Main difference is, in C & E diagram we predetermine the major

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

Affinity Diagram Relations Diagram

It dwells on what & how to do a Prepared through a logical

Arrangement of complex problems, In a way it can be called as

Revision No. NNCPL/PPT/N7TOOLS/001 Version No. 3.0 Date: 01/12/09

 Used when normal methods do not yield results

 Applicable when issues are complicated

 Where various factors number of agencies involved for a

 Where multiple objectives are involved in an