LECTURE 3 - Basic Seven Tools

MANAGEMENT OF ENGINEERING PROJECTS
The Basic Seven (B7)

Tools of Quality
ENGR. LIZA MARIE B. NUEVO

Tools of Quality
"As much as 95% of quality related problems in the factory can be
solved with seven fundamental quantitative tools." - Kaoru Ishikawa
What are the Basic Seven Tools
of Quality?
o Fishbone or Cause and Effect
Diagram
o Histograms
o Pareto Analysis
o Flowcharts
o Scatter Plots
o Run Charts or Checksheets
o Control Charts
Where did the Basic Seven
come from?
Kaoru Ishikawa
o Known for “Democratizing Statistics”
o The Basic Seven Tools made statistical

analysis less complicated for the average
person
o Good Visual Aids make statistical and quality

control more comprehensive.

Tools of Quality
Fishbone or Cause and Effect Diagrams
o No statistics involved
o Maps out a process/problem
o Makes improvement easier
o Looks like a “Fish Skeleton”
Tools of Quality

o Purpose: Graphical representation of the trail
leading to the root cause of a problem
o How is it done?
 Decide which quality characteristic,
outcome or effect you want to examine
(may use Pareto chart)
 Backbone –draw straight line
 Ribs – categories
 Medium size bones –secondary causes
 Small bones – root causes
Tools of Quality

Benefits:
o Breaks problems down into bite-size
pieces to find root cause
o Fosters team work
o Common understanding of factors
causing the problem
o Road map to verify picture of the
process
o Follows brainstorming relationship
Constructing a
Fishbone Diagram
o Step 1 - Identify the Problem

o Step 2 - Draw “spine” and “bones”
Example: High Inventory Shrinkage at

local Drug Store

Constructing a
Fishbone Diagram
o Step 3 - Identify different areas

where problems may arise from
Ex. : High Inventory Shrinkage at local

Drug Store

Constructing a
Fishbone Diagram
o Step 4 - Identify what these specific

causes could be

Drug Store
MANAGEMENT OF ENGINEERING PROJECT

Constructing a
Fishbone Diagram
Drug Store
MANAGEMENT OF ENGINEERING PROJECT

Constructing a
Fishbone Diagram
Step 5 – Use the finished diagram to

brainstorm solutions to the main
problems.

Tools of Quality
Histograms
oBar chart
oUsed to graphically
represent groups of
data
Tools of Quality
Histograms
Purpose:
To determine the spread or variation of a set of data
points in a graphical form
How is it done?:
o Collect data, 50-100 data point
o Determine the range of the data
o Calculate the size of the class interval
o Divide data points into classes Determine the
class boundary
o Count # of data points in each class
o Draw the histogram
Tools of Quality
Histograms
Benefits:
o Allows you to understand at a glance the variation

that exists in a process
o The shape of the histogram will show process
behavior
o Often, it will tell you to dig deeper for otherwise
unseen causes of variation.
o The shape and size of the dispersion will help
identify otherwise hidden sources of variation
o Used to determine the capability of a process
o Starting point for the improvement process
Constructing a
Histogram
From a set of data compute

o sum
o mean (x)
o Max
o Min
o Range (max-min)

Constructing a
Histogram
o Use range to estimate beginning and end
o Calculate the width of each column by

dividing the range by the number of
columns

Pizza Example
o Let’s say the owner wants a distribution of
Pizza on Thursday Night Sales
Data Set from last Thursday(slices)

02122413121224341432232122122142
21212212121212121222121211222314
22322212322422441222322122421242
1721223121121222122121222424

Pizza Example
Mean = 2.032258
Max = 7
Min = 0
Range = 7
Question
For 7 columns what would the width be?
Range/Columns=7/7=1 slice

Pizza Example
Histogram
70 65
60
50
40 33
30
20
12
8
10
0 0 1
0
1 2 3 4 5 6 7
Slices of Pizza
Constructing a
Histogram
How is this helpful to the manager?
o 2 slices of pizza is the most common
order placed
o Distribution of sales useful for
forecasting next Thursday’s late night
demand
If you were the manager how could you

apply this information?

Tools of Quality
Pareto Charts
o Very similar to
Histograms
o Use of the 80/20 rule
o Use of percentages
to show importance
Tools of Quality
Pareto Charts
Purpose:
Prioritize problems.
How is it done?
o Create a preliminary list of problem
classifications.
o Tally the occurrences in each
problem classification.
o Arrange each classification in order
from highest to lowest
o Construct the bar chart
Tools of Quality
Pareto Charts
Benefits:
o Pareto analysis helps graphically

display results so the significant few
problems emerge from the general
background
o It tells you what to work on first

Tools of Quality
Pareto Charts
120
100
80
Quantity
60
40
20
0
Dent Scratch Hole Others Crack Stain Gap
Defects 104 42 20 14 10 6 4

Pizza (part 2)

Pizza (part 2)
• The completed Pareto Analysis results
in the following graph:
70
60
50
40
30
20
10
0
1 2 3 4 5 6 7
Slices of Pizza
Pizza (part 2)
Critical Thinking
How does the Pareto Analysis
differ from the Histogram?
How can this be a useful tool to

the Acme boss?

Tools of Quality
Flowcharts
Purpose:
Visual illustration of the sequence of operations required
to complete a task
o Schematic drawing of the process to measure or
improve.
o Starting point for process improvement
o Potential weakness in the process are made
visual.
o Picture of process as it should be.

Tools of Quality
Flowcharts
Benefits:
o Identify process improvements
o Understand the process
o Shows duplicated effort and other non-value-
added steps
o Clarify working relationships between people and
organizations
o Target specific steps in the process for
improvement.

Tools of Quality
Flowcharts (Top Down)
Benefits
o Simplest of all flowcharts
o Used for planning new processes or examining
existing one
o Keep people focused on the whole process
How is it done?
o List major steps
o Write them across top of the chart
o List sub-steps under each in order they occur

Tools of Quality
Flowcharts

Tools of Quality
Flowcharts (Linear)
Benefits
o Show what actually happens at each step in the
process
o Show what happens when non-standard events
occur
o Graphically display processes to identify
redundancies and other wasted effort
How is it done?
o Write the process step inside each symbol
o Connect the Symbols with arrows showing the
direction of flow
Tools of Quality
Flowcharts (Linear)

Tools of Quality
Flowcharts (Linear)
END
5 - Action Assignee
performs detail
analysis of failure. No
Start Requests failure
analysis as needed. 11 - Fleet Analysis
Still monitors failure to
failing? ensure corrective
action is effective.
1- Fleet Analysis
Yes
utilizes data
Yes
warehouse reports to 6 - Action Assignee
create and distribute documents
a selection matrix. 10 - FRB determines
investigation
required corrective
findings.
action - i.e. QAM or
supplier corrective
2 - Other Groups action.
compile data as
determined by FRB.
7 - Action Assignee 9 - FRB Categorize
reports investigation Failure: Workmanship,
3 - FRB meets to results to FRB. Still component, material,
No
analyze data. failing? maintenance, or
design. Also fleet
wide or RSU.
4 - FRB selects 8 - Fleet Analysis

candidate problems monitors failed item
for additional to ensure failure has
investigation. been corrected.

Flowcharts
Don’t Forget to:
o Define symbols before beginning
o Stay consistent
o Check that process is accurate

How can we use the flowchart to
analyze improvement ideas from the
Histogram?
Exercises
Make a flowchart for:
o Taking a shower
o Cooking dinner
o Driving a car
o Having a party
o Creating a Flowchart

The Basic Seven (B7) Tools of Quality
Scatter Diagrams
Purpose:
To identify the correlations that might

exist between a quality characteristic and a
factor that might be driving it.

Scatter Diagrams
A scatter diagram shows the correlation between two
variables in a process.
 These variables could be a Critical To Quality

(CTQ) characteristic and a factor affecting it two
factors affecting a CTQ or two related quality
characteristics.
Scatter Diagrams
Dots representing data points are scattered on the
diagram.
 The extent to which the dots cluster together in a

line across the diagram shows the strength with
which the two factors are related.

Scatter Diagrams

Scatter Diagrams
How is it done?
o Decide which paired factors you want to examine. Both
factors must be measurable on some incremental linear
scale.
o Collect 30 to 100 paired data points.
o Find the highest and lowest value for both variables.
o Draw the vertical (y) and horizontal (x) axes of a graph.
o Plot the data
o Title the diagram
Scatter Diagrams
 If the variables are correlated, when one changes
the other probably also changes.
 Dots that look like they are trying to form a line

are strongly correlated.

Scatter Diagrams
Sometimes the scatter plot may show little correlation when all
the data are considered at once.
 Stratifying the data, that is, breaking it into two or more

groups based on some difference such as the equipment
used, the time of day, some variation in materials or
differences in the people involved, may show surprising
results

Scatter Diagrams

Scatter Diagrams
You may occasionally get scatter diagrams that look boomerang-
or banana-shaped.
 To analyze the strength of the correlation, divide the

scatter plot into two sections.
 Treat each half separately in your analysis

Scatter Diagrams
Benefits:
o Helps identify and test probable causes.
o By knowing which elements of your process are related
and how they are related, you will know what to control or
what to vary to affect a quality characteristic.

Pizza
Scatter Diagrams
Minutes Cooking Defective Pies
10 1
45 8
30 5
75 20
60 14
20 4
25 6
In this simple example, you can find the existing

relationship without much difficulty but…
Scatter Diagrams
25
o Easier to
see direct 20
relationship
15
10
0
0 20 40 60 80
Time Cooking (minutes) MANAGEMENT OF ENGINEERING PROJECTS

Scatter Diagrams
As a quality tool
o What does this tell Acme management about their
processes?
25
o Improvements? 20
15
10
0
0 20 40 60 80
Time Cooking (minutes)

Tools of Quality
Run charts/ Checksheet

Purpose:
o Tool for collecting and organizing
measured or counted data
o Data collected can be used as
input data for other quality tools

Tools of Quality

Benefits:
o Collect data in a systematic and
organized manner
o To determine source of problem
o To facilitate classification of data
(stratification)

Tools of Quality

Tools of Quality
Control Charts
Purpose:
The primary purpose of a control chart is
to predict expected product outcome.
Benefits:
o Predict process out of control and out
of specification limits
o Distinguish between specific,
identifiable causes of variation
o Can be used for statistical process
control
Tools of Quality
Control Charts
Strategy for eliminating assignable-cause
variation:
 Get timely data so that you see the effect of

the assignable cause soon after it occurs.
 As soon as you see something that
indicates that an assignable cause of
variation has happened, search for the
cause.
 Change tools to compensate for the
assignable cause.

Tools of Quality
Control Charts
Strategy for reducing common-cause
variation:
 Do not attempt to explain the

difference between any of the values
or data points produced by a stable
system in control.
 Reducing common-cause variation
usually requires making fundamental
changes in your process.

Tools of Quality
Control Charts
Control Chart Decision Tree
 Determine Sample size (n)

 Variable or Attribute Data
o Variable is measured on a continuous
scale
o Attribute is occurrences in n
observations
 Determine if sample size is constant or
changing

Tools of Quality
Control Charts
What does it look like?
o Adding the element of time will help
clarify your understanding of the
causes of variation in the processes.
o A run chart is a line graph of data
points organized in time sequence and
centered on the median data value.
Tools of Quality
Control Charts

Tools of Quality
Control Charts
How is it done?
o The data must have a normal distribution (bell
curve).
o Have 20 or more data points. Fifteen is the
absolute minimum.
o List the data points in time order. Determine the
range between each of the consecutive data
points.
o Find the mean or average of the data point values.
o Calculate the control limits (three standard
deviations)
o Set up the scales for your control chart.
o Draw a solid line representing the data mean.
o Draw the upper and lower control limits.
o Plot the data points in time sequence.
Tools of Quality
Control Charts
Basic Control Charts interpretation rules:
o Specials are any points above the UCL or
below the LCL
o A Run violation is seven or more consecutive
points above or below the center (20-25 plot
points)
o A trend violation is any upward or
downward movement of five or more
consecutive points or drifts of seven or more
points (10-20 plot points)
o A 1-in-20 violation is more than one point in
twenty consecutive points close to the
center line
Tools of Quality
Control Charts

Tools of Quality
Control Charts

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MANAGEMENT OF ENGINEERING PROJECTS

The Basic Seven (B7)

The Basic Seven (B7)

o The Basic Seven Tools made statistical

o Good Visual Aids make statistical and quality

MANAGEMENT OF ENGINEERING PROJECTS

Fishbone or Cause and Effect Diagrams

Fishbone or Cause and Effect Diagrams

Fishbone or Cause and Effect Diagrams

o Step 1 - Identify the Problem

Example: High Inventory Shrinkage at

MANAGEMENT OF ENGINEERING PROJECTS

o Step 3 - Identify different areas

Ex. : High Inventory Shrinkage at local

MANAGEMENT OF ENGINEERING PROJECTS

o Step 4 - Identify what these specific

Ex. : High Inventory Shrinkage at local

MANAGEMENT OF ENGINEERING PROJECT

MANAGEMENT OF ENGINEERING PROJECT

Step 5 – Use the finished diagram to

MANAGEMENT OF ENGINEERING PROJECTS

o Allows you to understand at a glance the variation

From a set of data compute

MANAGEMENT OF ENGINEERING PROJECTS

o Use range to estimate beginning and end

o Calculate the width of each column by

MANAGEMENT OF ENGINEERING PROJECTS

Data Set from last Thursday(slices)

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

If you were the manager how could you

MANAGEMENT OF ENGINEERING PROJECTS

o Use of the 80/20 rule

o Pareto analysis helps graphically

o It tells you what to work on first

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

How can this be a useful tool to

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

4 - FRB selects 8 - Fleet Analysis

MANAGEMENT OF ENGINEERING PROJECTS

o Define symbols before beginning

o Check that process is accurate

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

To identify the correlations that might

MANAGEMENT OF ENGINEERING PROJECTS

 These variables could be a Critical To Quality

 The extent to which the dots cluster together in a

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

 Dots that look like they are trying to form a line

MANAGEMENT OF ENGINEERING PROJECTS

 Stratifying the data, that is, breaking it into two or more

MANAGEMENT OF ENGINEERING PROJECTS

MANAGEMENT OF ENGINEERING PROJECTS

 To analyze the strength of the correlation, divide the