TQM in My Department

●Seven Statistical Tools

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Seven Statistical Tools

1. Pareto diagrams
2. Cause-and-effect diagrams
3. Histograms
4. Control charts
5. Scatter diagrams
6. Graphs
7. Checksheets
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Seven Statistical Tools

1. Pareto diagram
A special form of bar graph based on cumulative
percentages; it displays the relative importance of
problems or conditions
in order to focus efforts
on the key causes
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Seven Statistical Tools

⮚ Pareto Principle
✔ Suggests that most effects result
from relatively few causes
✔ Implies that 80% of effects come
from 20% of possible causes
✔ Encourages separation of the
“vital few” from the “useful many”
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Seven Statistical Tools

⮚ Pareto Principle
✔ Named after Vilfredo Pareto who in 1906
observed that 80% of the wealth was
owned by only 20% of Italy’s population
✔ Codified into the philosophy of TQM after
further research by Dr. Joseph Juran
✔ Also known as the 80:20 Rule
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Seven Statistical Tools

⮚ Establishing priorities
✔ “ If everything is important, then nothing
is important…some things need to be
emphasized – or it all ends up as noise”
❖ Richard Koch, The 80/20 Principles
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Seven Statistical Tools

⮚ Pareto diagram
✔ Constructed using results derived
from a Cause-and-Effect analysis
✔ Displays the frequency of various
contributory or causal factors
✔ Prioritizes causal factors for most
immediate and effective action
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Seven Statistical Tools

⮚ Pareto diagram
✔ FOCUS on critical issues by ranking them in
terms of importance and frequency
✔ TARGET “major causes” to facilitate efficient,
cost-effective corrective actions
✔ ANALYZE problems or causes by different
groupings of data
✔ EVALUATE impact of changes or improvement
efforts (before and after comparisons)
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Pareto Diagram

⮚ Pareto diagram construction

1) Select items to be compared
(issues, problems, actions, etc.)
❖ Limit list to 10 or fewer significant items
2) Select a standard unit of measure
3) Define a reasonable timeframe for
data collection
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Pareto Diagram

⮚ Collect and summarize data

4) Use a frequency table and/or a
tally sheet to collect and organize
the necessary data

❖ See following example

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Pareto Diagram

⮚ Collect and summarize data

✔ Frequency Table
❖ A table to organize tally sheet data for
easy graphing into a Pareto diagram
or Histogram
✔ Tally Sheet
❖ A simple data collection form for
recording how frequently an event
occurs
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Pareto Diagram

⮚ Collect and summarize data

✔ Frequency table headings
❖ Categories of problems or causes
❖ Frequency of each category
❖ Cumulative percentage of categories
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Frequency Table
CATEGORY FREQUENCY CUMULATIVE %
Cause F = #1 65 32.5
Cause E = #2 49 57
Cause C = #3 26 70
Cause I = #4 20 80
Cause A = #5 10 85
Cause B = #6 9 89.5
Cause J = #7 8 93.5
Cause H = #8 7 97
Cause G = #9 4 99
Cause D = #10 2 100
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Pareto Diagram

⮚ Collect and summarize data

✔ Tally sheet procedure
❖ Review process steps or problem causes
❖ List steps or problems to be observed
❖ Record each event occurrence
❖ Calculate frequency of each event
❖ Compile data into frequency table
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Pareto Diagram

⮚ Create chart axes

5) One horizontal axis ranking causes
from most to least frequent
6) Two vertical axes
❖ First on far left to indicate frequency of
each individual category
❖ Second on far right to show
cumulative frequency of all categories
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Pareto Diagram

Step 6

Step 5
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Pareto Diagram

⮚ Plot the data

7) Use bar graph for the frequency of
individual categories (left axis)
8) Use line graph with data point above
each category bar to show cumulative
percentage for all categories (right
axis); total should equal 100%
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Pareto Diagram

Step 7
Step 8
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Pareto Diagram

⮚ Interpret the data

9) Draw a horizontal line from Y-axis 80%
scale point to bisect the cumulative
frequency line
10)Draw a vertical line from this bisecting
point down to the X-axis
❖ The resulting line separates the important
causes from the less significant ones
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Pareto Diagram

Step 9
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Pareto Diagram

Step 10
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Pareto Diagram
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Pareto Diagram

⮚ Address the causes that really matter

✔ Decide first if it is relevant and then if it is
significant
✔ Focus resources on the most significant
causes
✔ Use common sense and prior experience
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Pareto Diagram

⮚ If there is no clear distinction

between categories—if all bars
are about equal or if half of the
categories represent 60% of the
effect, reorganize the data based
on different criteria and repeat
the Pareto analysis
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Seven Statistical Tools

2. Cause-and-effect diagram
A graphical technique for grouping
ideas about the possible causes of
a problem or sources of variation
in a process; it facilitates exploring
and displaying contributing factors
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Seven Statistical Tools

⮚ Cause-and-Effect diagram
✔ Forces consideration of the overall
complexity of a problem
✔ Facilitates an objective assessment of
all factors contributing to the effect
✔ Organizes primary and secondary
causes of a problem for priority action
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Seven Statistical Tools

⮚ Cause-and-Effect diagram
✔ Named after Kaoru Ishikawa, who
developed the technique in 1943 at
Kawasaki Steel Works in Japan
✔ Also known as a fishbone diagram,
Ishikawa diagram, and Root Cause
analysis
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Seven Statistical Tools

⮚ Cause-and-Effect diagram
✔ Often the next step after making a
Pareto diagram
✔ Constructed using ideas generated
during a brainstorming session
✔ Displays relationship groupings from
a Causal Table or Affinity Diagram
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Seven Statistical Tools

⮚ In a team context
✔ Focuses team members’ attention on a
specific problem
✔ Pools and reflects back team thinking
✔ Constructs a picture of the problem
without resorting to the tight discipline
of flowcharting or process mapping
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Cause-and-Effect Diagram

⮚ Diagram construction
1) Write the problem under investigation
in a box at the head of the diagram

Problem!
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Cause-and-Effect Diagram

⮚ Diagram construction
2) Draw a “backbone” arrow pointing to
the head; the arrow indicates that the
items on the backbone might cause
the problem

Problem!
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Cause-and-Effect Diagram

⮚ Diagram construction
3) Draw a few long “bones” to feed into the spine
representing main categories of possible causes
(typically 3 to 6)
✔ Typical starting points or main “bones”
❖ manufacturing; Man, Machine, Materials, Methods
❖ administration; People, Equipment, Policy, Procedure
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Cause-and-Effect Diagram

⮚ Diagram construction
Man Machine

Problem!

Materials Methods
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Cause-and-Effect Diagram

⮚ Diagram construction
4) Add possible causes or process
variables to the main “bones”
5) Add more specific causes or variables
to the secondary “bones”
❖ Insure the process variables listed are
specific, measurable, and controllable
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Cause-and-Effect Diagram

⮚ Diagram construction
Man Machine 5b
4c
4a
4b
5a
Problem!

4d 4e
Materials Methods 5c
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Cause-and-Effect Diagram

⮚ Diagram analysis
6) When the diagram is complete,
circle the most likely root causes
to indicate items for priority action
❖ Practical maximum depth of this tree
is usually 4 or 5 levels or branches
7) Transfer the circled items into a
Pareto diagram for further
analysis
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Cause-and-Effect Diagram

⮚ Diagram construction
Man Machine 5b
4c
4a
4b
5a
Problem!

4d 4e
Materials Methods 5c
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Seven Statistical Tools

3. Histogram
A specialized bar graph that
displays the distribution of
measurement data, thereby
revealing the variability of a
process
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Seven Statistical Tools

⮚ Histogram
✔ Displays the frequency of various
data categories
✔ Reveals the pattern of variation
✔ Provides insight into the process
✔ Provides strong indications of the
proper distribution model for the data
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Seven Statistical Tools

⮚ Histogram shows the

✔ Spread or scale of the distribution
✔ Skewness of the distribution
✔ Presence of outliers
✔ Center of the data distribution
✔ Presence of multiple modes
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Histogram

⮚ Histogram construction
1) Collect data on the analyzed variable
❖ count the number of data points in the set
2) Determine the range, R, for the entire
data set
❖ the largest value in the data set minus the
smallest value
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Histogram

⮚ Histogram construction
3) Select the number of interval classes, K,
per the number of data points in the set
# of data points # of classes (K)
<50 5-7
50-100 6-10
100-250 7-12
>250 10-20
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Histogram

⮚ Histogram construction
4) Calculate the class width, H
H = R/K = data set range/number of classes

5) Determine the class boundary

Take the smallest individual measurement from the
data set as the lower end point for the first class
boundary, add the class width to get the upper end
point. Each subsequent class boundary is obtained by
adding the class width to the previous boundary
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Histogram

⮚ Histogram construction
6) Construct a frequency table to
display the data
❖ refer to section on Pareto diagrams

CATEGORY FREQUENCY CUMULATIVE %

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Frequency Table
CATEGORY FREQUENCY CUMULATIVE %
Cause A 10 5
Cause B 9 10.95
Cause C 26 22.5
Cause D 2 23.5
Cause E 49 48
Cause F 65 80.5
Cause G 4 82.5
Cause H 7 86
Cause I 20 96
Cause J 8 100
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Histogram

⮚ Histogram construction
7) Draw a vertical and horizontal axis
❖ Horizontal axis (x) shows data categories
(independent variable in discrete values)
❖ Vertical axis (y) shows frequency of
occurrence for each category (dependent
variable can span a continuous range)
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Histogram

⮚ Histogram construction
8) Draw a rectangle for each category
(no space between sequential rectangles)
❖ width of rectangle represents interval
between categories; i.e., time segment
❖ height of rectangle corresponds to the
observed frequency rate; i.e., incident count
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Histogram
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Seven Statistical Tools

4. Control chart
A tool that graphically depicts the
average value and the upper and
lower control limits of a process;
used to detect abnormal trends in
process performance
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Seven Statistical Tools

4. Control chart
A run chart with statistically
determined upper and lower control
limits set on either side of the process
average; used to detect abnormal
trends in process performance
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Seven Statistical Tools

⮚ Control charts
✔ Distinguish between normal and
unusual process variation
❖ Normal process variation results
from common causes
❖ Unusual process variation results
from abnormal or special causes
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Control Charts

⮚ Process variation
✔ “If I had to reduce my message to
management to just a few words,
I'd say it all has to do with reducing
variation.”
❖W. Edwards Deming
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Control Charts

⮚ Process variation
✔ Common causes are flaws inherent
in the design of the process
❖ affect all of the individual values of
the process output and appear as
part of the random process variation
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Control Charts

⮚ Process variation
✔ Special causes are variations
resulting from assignable causes
❖ abnormal conditions that are
intermittent, unpredictable, or unstable
and affect only some of the individual
values of the process
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Control Charts

⮚ Control chart types

✔ Percent nonconforming (P chart )
❖ Used if you have data measured
with only two possible outcomes;
i.e., yes or no, correct or incorrect,
on time or late
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Control Charts

⮚ Control chart types

✔ Average & range (X-R chart)
❖ Used if you have data measured
on a continuous scale; i.e., wafer
thickness, response time
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Control Charts

⮚ Percent nonconforming (P chart )

✔ Used when measuring attribute data
✔ Occurrences and non occurrences
of the event are clearly identified
✔ When the sample size varies
❖ If the sample size is constant
use an NP chart
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Control Charts

⮚ Average & range (X-R chart)

✔ Used when measuring variable data
✔ Average and range charts are used
together and are generated from the
same raw data
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Control Charts

⮚ Average & range (X-R chart)

✔ Show whether the process is stable
and in statistical control or not
✔ Does not show if the process output
is acceptable or not
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Control Charts

⮚ Average & range (X-R chart)

✔ Your operational goal is always
the standard set by customers
or management
✔ Your process goal is always a
system in control
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Control Charts

⮚ Control chart construction

1) Define standards for how the
process should be
2) Select the appropriate chart to use
❖ P chart
❖ X-R chart
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Control Charts

⮚ Control chart construction

3) Collect data about the process
4) Record data on the appropriate graph
5) Calculate control limits using the
appropriate method
6) Interpret the graph
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Control Charts

⮚ Control chart interpretation

✔ Data fluctuates within the limits
❖ The process is in a state of statistical
control if all points are within the limits
and form a random pattern – no trends
❖ Results from common causes
❖ Can only be affected by process
changes or improvements
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Control Charts

⮚ Special cause actions to take

✔ Immediately try to understand when
a special cause occurred
✔ Determine what was different in the
process when it happened
✔ Implement corrective action to
prevent it from reoccurring
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Control Charts

⮚ Special cause actions to avoid

✔ Tampering or changing the process
without understanding the true
nature of the process variation
✔ Making fundamental changes in the
process
✔ Doing nothing at all
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Control Charts

⮚ Common cause actions to take

✔ Understand that the inherent process
capability will not change unless the
process itself is changed
✔ Determine which characteristics to
change in order to reduce variation
✔ Improve those characteristics
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Control Charts

⮚ Common cause actions to avoid

✔ Trying to interpret individual
occurrences of the process or to
explain the difference between
those that are high and low
✔ Doing nothing at all
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Control Charts

⮚ Control limits vs. Spec limits

✔ Control limits
❖ Used to determine if the process is
in a state of statistical control; i.e.,
is producing consistent output
✔ Specification limits
❖ Used to determine if the product will
function in the intended fashion
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Control Charts

⮚ Control limits vs. Spec limits

✔ Control limits are not specification
limits, desired goals, or standards;
they are statistically determined
values calculated based on data
from the process
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Seven Statistical Tools

5. Scatter diagram
A two-way (bivariate) frequency
distribution showing the degree
and type of relationship
(covariance) between two data
series
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Seven Statistical Tools

⮚ Scatter diagram
✔ Probably the most frequently used
graph in scientific analysis
✔ Shows the direction and strength of
a relationship between two variables
✔ Also known as a scatterplot
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Seven Statistical Tools

⮚ Scatter diagram
✔ The two variables must be quantifiable
✔ One is considered as the “cause” and
the other an “effect”
✔ Note that a scatter diagram cannot
prove a cause & effect relationship
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Scatter Diagrams

⮚ Linear correlation possibilities

✔ Positive and direct, +1 to 0
✔ Negative or inverse, 0 to -1
✔ Zero or nonexistent, 0 or ~0
⮚ Coefficient of correlation
✔ Ranges from +1 through 0 to -1
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Scatter Diagrams

⮚ Positive correlation
✔ As one variable increases or decreases
the other changes proportionately in
the same direction
❖ Data pattern is linear or near linear from
lower-left to upper-right corner of graph
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Scatter Diagrams

⮚ Positive correlation
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Scatter Diagrams

⮚ Negative correlation
✔ The two variables change in opposite
directions
❖ Data pattern is linear or near linear from
upper-right to lower-left corner of graph
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Scatter Diagrams

⮚ Negative correlation
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Scatter Diagrams

⮚ Weak or nonexistent correlation

✔ The degree of correlation is low, ~0
❖ Data pattern is random or widely
dispersed over the entire graph with little
or no tendency to align in either diagonal
direction
❖ Data pattern may be curvilinear, forming
an arc or circular pattern
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Scatter Diagrams
⮚ No correlation (nonlinear)
Projectile Motion
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Seven Statistical Tools

⮚ Scatter diagram analysis

✔ Also known as regression analysis
✔ Is the equation of the least square
fit line through the data and is used
to estimate values of the dependent
variable for given values of the
independent variable
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Seven Statistical Tools

6. Graphs – some common types

⮚ Bar graph (see pareto or histogram)
⮚ Line graph (see scatter diagram)
⮚ Circle graph (Venn diagram)
⮚ Radar chart
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Graphs

⮚ Bar Graph
✔ Are used to display data that naturally
falls into discrete categories
✔ Visually displays a comparison of the
amount or frequency of occurrence of
different characteristics of data
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Graphs

⮚ Line Graph
✔ Map independent and dependent
variables that are both quantitative
✔ The line segment connecting two
points on a line graph expresses the
slope of the change from point to
point; increasing, decreasing, or
remaining constant
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Graphs

⮚ Circle Graph - Venn diagram

Histogram
Pareto
Check Sheet Cause & Effect Control Chart

Scatter Plot

Problem Identification Problem Analysis

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Graphs

⮚ Radar chart
✔ A graphical display of the differences
between actual and ideal performance.
✔ Useful for defining performance and
identifying strengths and weaknesses.
✔ Also known a spiderweb chart because
of its characteristic shape
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Seven Statistical Tools

7. Checksheet
A tool used to systematically
and routinely observe a
process using a list of closed-
ended questions designed to
verify the results
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Checksheet

⮚ Checksheet uses
✔ Problem analysis
✔ Verification if a solution has been
implemented successfully
✔ Check for consistency of a process
on the basis of a flowchart
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Checksheet

⮚ Checksheet construction
1) Review all of the steps of the process
to be observed
2) Select the critical process steps
3) Make a list of “closed” or “yes/no”
questions to check if these critical
process steps are performed correctly
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Checksheet

⮚ Checksheet construction
4) Perform the observations and collect
the data by recording the answer to
each question
5) Interpret the data
6) Implement corrective actions if
necessary
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Checksheet

⮚ Types of data recording

✔ Tally mark, check mark, or stroke
✔ Number corresponding to key
coded responses
✔ Pictorial form on a diagram
(bad die wafer map)
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Checksheet

⮚ Tally mark, check mark, or stroke

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Checksheet

⮚ Key coded responses