ABS

Amity Business School

Programme - MBA, Semester II
Course – Operations Management
Name of Faculty – Rajeev Pathak

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7 QC tools

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• Check Sheet is used to easily collect data.

Decision-making and actions are taken from the
data.
• Pareto Chart is used to define problems, to set
their priority, to illustrate the problems detected,
and determine their frequency in the process.
• Cause-and-Effect Diagram (Fishbone
Diagram) is used to figure out any possible
causes of a problem. After the major causes are
known, we can solve the problem accurately.

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• Histogram shows a bar chart of

accumulated data and provides the
easiest way to evaluate the distribution of
data.
• Scatter Diagram is a graphical tool that
plots many data points and shows a
pattern of correlation between two
variables.

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• Flow Chart shows the process step by

step and can sometimes identify an
unnecessary procedure.
• Control Chart provides control limits
which are generally three standard
deviations above and below average,
whether or not our process is in control.

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7 QC Tools
 Tools for Generating Ideas
Check sheets
Scatter diagrams
Cause and effect diagrams
 Tools to Organize the Data
Pareto charts
Flow charts
 Tools for Identifying Problems
Histogram
Statistical process control chart
 ABS

Seven QC Tools
(a) Check Sheet: An organized method of
recording data

Hour
Defect 1 2 3 4 5 6 7 8
A /// / / / / /// /
B // / / / // ///
C / // // ////

Figure 6.5
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Seven QC Tools
(b) Scatter Diagram: A graph of the value
of one variable vs. another variable
Productivity

Absenteeism

Figure 6.5
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Seven QC Tools
(c) Cause and Effect Diagram: A tool that
identifies process elements (causes) that
might effect an outcome

Cause
Materials Methods
Effect

Manpower Machinery
Figure 6.5
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Seven QC Tools
(d) Pareto Charts: A graph to identify and plot
problems or defects in descending order of
frequency
Frequency

Percent
A B C D E
Figure 6.5
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Seven QC Tools
(e) Flow Charts (Process Diagrams): A chart
that describes the steps in a process

Figure 6.5
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Seven QC Tools
(f) Histogram: A distribution showing the
frequency of occurrence of a variable
Distribution
Frequency

Repair time (minutes)

Figure 6.5
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Seven QC Tools
(g) Statistical Process Control Chart: A chart with
time on the horizontal axis to plot values of a
statistic

Upper control limit

Target value

Lower control limit

Time
Figure 6.5
 Cause-and-Effect Diagrams ABS

clean pillows
Machinery

Insufficient

& blankets
Material

not available
on-board

equipment
Deicing
Inadequate
Mechanical delay
supply of
magazines on plane
Inadequate special Broken luggage
meals on-board carousel
Dissatisfied
Airline
Overbooking policies Understaffed Customer
crew
Bumping policies Understaffed

Poorly trained
Poor check-in

ticket counters

attendants
policies
Mistagged
bags

Methods Manpower
Figure 6.6
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Pareto Charts
Data for October
– 100
70 – – 93
– 88
60 –
54
Frequency (number)

Cumulative percent
– 72
50 –
40 –
Number of
30 –
occurrences
20 –
12
10 –
4 3 2
0 –
Room svc Check-in Pool hours Minibar Misc.
72% 16% 5% 4% 3%
Causes and percent
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Flow Charts
Packing and shipping process

Sealing Quick freeze

Packing Storage Shipping
Weighing storage
station (4 to 6 hrs) dock
Labeling (60 Mins)
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Statistical Process Control
(SPC)
 Uses statistics and control charts to
tell when to take corrective action
 Drives process improvement
 Four key steps
 Measure the process
 When a change is indicated, find the
assignable cause
 Eliminate or incorporate the cause
 Restart the revised process
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An SPC Chart
Plots the percent of free throws missed

20% Upper control limit

10% Coach’s target value

0% | | | | | | | | |
Lower control limit
1 2 3 4 5 6 7 8 9

Game number
Figure 6.7