A Training Presentation On The N7

The New Seven
Q.C. Tools
A Training Presentation on the N7
By Christopher Diaz
What are the
New Seven Q.C. Tools
Affinity Diagrams
Relations Diagrams
Tree Diagrams
Matrix Diagrams
Arrow Diagrams
Process Decision Program Charts
Matrix Data Analysis
History of the

Slide 1 0f 2
Committee of J.U.S.E. - 1972
Aim was to develop more QC

techniques with design approach
Work in conjunction with original

Basic Seven Tools
New set of methods (N7) - 1977
History of the

Slide 2 0f 2
Developed to organize verbal data

diagrammatically.
Basic 7 tools effective for data

analysis, process control, and
quality improvement (numerical
data)
Used together increases TQM

effectiveness
What are the
Basic Seven Q.C. Tools?
Flow Charts
Run Charts
Histograms
Pareto Diagrams
Cause and Effect Diagrams

Scatter Diagrams
Control Charts
Relation Between New Seven

Q.C. Tools and Basic Seven
Tools
FACTS
Data
Numerical Data
Verbal Data
Define problem after

collecting numerical data
Define problem before

collecting numerical data
The Basic Seven Tools

Analytical approach
The Seven New Tools

Generate Ideas
Organize
Formulate plans
Information
Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)
Benefits of Incorporating
Slide 1 0f 4
Enhanced Capabilities
Organize verbal data
Generate ideas
Improve planning
Eliminate errors and omissions
Explain problems intelligibly
Secure full cooperation
Persuade powerfully
Slide 2 0f 4
Enhanced Keys to Organizational Reform
Assess situations from various

angles
Clarify the desired situation
Prioritize tasks effectively
Proceed systematically
Anticipate future events
Change proactively
Get things right the first time
Slide 3 0f 4
Five Objectives of Organizational Reform

which will establish a Culture that:
Identifies problems
Gives importance to planning
Stresses the importance of the
Prioritizes
process tasks
Encourages everyone to think
systematically
Slide 4 0f 4
Unstructured Problem [must be put into solvable form]

The Seven New Tools
Problem is mapped
Problem becomes
obvious to all
Thoughts are
easily organized
Plans are
easily laid
Problem becomes
obvious to all
People understand
problem
Problem can be
clearly articulated
Nothing is
omitted
Nub of problem
is identified
Cooperation is
obtained
Things go well
Countermeasures
are on target
Problem is in solvable form

Affinity Diagrams
Slide 1 0f 7
For Pinpointing the Problem in a

Chaotic
Situation
and
Generating
Gathers
large
amountsSolution
of
Strategies
intertwined verbal data (ideas, opinions,
issues)
Organizes the data into groups

based on natural relationship
Makes it feasible for further

analysis and to find a solution to
Affinity Diagrams
Slide 2 0f 7
Advantages of Affinity Diagrams

Facilitates breakthrough thinking and
stimulate fresh ideas
Permits the problem to be pinned

down accurately
Ensures everyone clearly recognizes

the problem
Incorporates opinions of entire group
Affinity Diagrams
Slide 3 0f 7
Advantages of Affinity Diagrams (cont.)

Fosters team spirit
Raises everyones level of awareness
Spurs to the group into action

Topic
Affinity Statement
Affinity Statement
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Affinity Diagrams
Slide 4 0f 7
Constructing an Affinity Diagram

Group Method Approach
Select a topic
Collect verbal data by
brainstorming
Discuss info collected until
everyone understands it
Write
thoroughly
each item on separate data
card
Spread out all cards on table
Affinity Diagrams
Slide 5 0f 7

Group Method Approach (cont.)
Move data cards into groups of

similar themes (natural affinity for each
other)
Combine statements on data cards
to new Affinity statement
Make new card with Affinity
Continue
statementto combine until less than
5 groups
Affinity Diagrams
Slide 6 0f 7

Lay the groups outs, keeping the

affinity clusters together
Next, complete the diagram
Affinity Diagrams
Slide 7 0f 7
Completing an Affinity Diagram

Topic
Affinity Statement
Affinity Statement
Affinity Statement
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Affinity Statement
Data Card
Data Card
Data Card
Relations Diagrams
Slide 1 0f 7
For Finding Solutions Strategies by

Clarifying
Relationships
with Complex
Interrelated
Resolves tangled
issues by
Causes
unraveling the logical connection
Allows for Multi-directional

thinking rather than linear
Also known as Interrelationship

diagrams
Relations Diagrams
Slide 2 0f 7
Advantages of Relations Diagrams

Useful at planning stage for obtaining
perspective on overall situation
Facilitates consensus among team
Assists to develop and change

peoples thinking
Enables priorities to be identified

accurately
Relations Diagrams
Slide 3 0f 7
Advantages of Relations Diagrams (cont.)

Makes the problem recognizable by
clarifying the relationships among
Tertiary
Tertiary
Secondary
Cause
Cause
causes
Primary Cause
Cause
Secondary
Cause
Why doesnt
X happen?
Primary Cause
Tertiary
Cause
4th level
Cause
Tertiary
Cause
Primary Cause
Secondary
Cause
Secondary
Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
6th level
Cause
4th level
Cause
5th level
Cause
Relations Diagrams
Slide 4 0f 7
Constructing a Relations Diagram

Express the problem in form of

Why isnt something happening?
Each member lists 5 causes
affecting problem
Write each item on a card
Discuss info collected until
everyone understands it
thoroughly
Relations Diagrams
Slide 5 0f 7

Move cards into similar groups

Asking why, explore the causeeffect relationships, and divide the
cards into primary, secondary and
tertiary
Connectcauses
all cards by these
relationships
Further discuss until all possible
causes have been identified
Relations Diagrams
Slide 6 0f 7

Review whole diagram looking for

relationships among causes
Connect all related groups
Relations Diagrams
Slide 7 0f 7
Completing a Relations Diagram

Tertiary
Cause
Primary Cause
Why doesnt
X happen?
Primary Cause
Tertiary
Cause
Secondary
Cause
Tertiary
Cause
Tertiary
Cause
Primary Cause
Secondary
Cause
4th level
Cause
Secondary
Cause
Secondary
Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
6th level
Cause
4th level
Cause
5th level
Cause
Tree Diagrams
Slide 1 0f 5
For Systematically Pursuing the Best

Strategies
for
Attaining an
Objective
Develops
a succession of
strategies for achieving objectives
Reveals methods to achieve the

results.
Also known as Systematic

diagrams or Dendrograms
Tree Diagrams
Slide 2 0f 5
Advantages of Tree Diagrams

Systematic and logical approach is
less likely that items are omitted
Facilitates agreement among team
Are extremely convincing with
4th means
strategies
3rd means
4th means
Secondary means
Primary means
To
Accomplish
Constraints
Secondary means
3rd means
3rd means
3rd means
4th means
4th means
4th means
4th means
4th means
Tree Diagrams
Slide 3 0f 5
Constructing a Tree Diagram

Write Relations Diagram topic

(Objective card)
Identify constraints on how

objective can be achieved
Discuss means of achieving
objective (primary means, first level
Take
each primary mean, write obstrategy)
jective for achieving it (secondary
Tree Diagrams
Slide 4 0f 5
Constructing an Tree Diagram

Continue to expand to the fourth

level
Review each system of means in
both directions (from objective to means
and means to objective)
Add more cards if needed

Connect all levels
Tree Diagrams
Slide 5 0f 5
Completing a Tree Diagram

Secondary means
Primary means
To
Accomplish
3rd means
4th means
3rd means
4th means
3rd means
Secondary means
4th means
3rd means
4th means
4th means
4th means
4th means
Secondary means
4th means
3rd means
4th means
4th means
Primary means
Constraints
3rd means
Secondary means
3rd means
4th means
3rd means
4th means
Matrix Diagrams
Slide 1 0f 7
For Clarifying Problems by Thinking

Multidimensionally
Consists of a two-dimensional
array to determine location and
nature of problem
Discovers key ideas by

relationships represented by the
cells in matrix.
Matrix Diagrams
Slide 2 0f 7
Advantages of Matrix Diagrams

Enable data on ideas based on
extensive experience
Clarifies relationships among
different elements
Makes overall structure of problem
immediately obvious
Combined from two to four types of
diagrams, location of problem is
Matrix Diagrams
Slide 3 0f 7
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
=4
=5
=6
Principa l
Subsidia ry
Hold 4 times/month
At every meeting
S e c t io n /P la n t
M anager
S it e Q C c ir c le
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
O
X
X
1
4
M em ber
Responsibilitie s
Leader
Eva lua tion
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
Rank
=1
=2
=3
P r a c t ic a b ilit y
E f f ic a c y
O
O
Q C c ir c le s u p p o r t e r
Advantages of Matrix Diagrams (cont.)

5 types: L-shaped, T-shaped, Yshaped, X-shaped, and C-shaped
Re ma rks
O
O
O
At least 3 times/year/person
O
O
Matrix Diagrams
Slide 4 0f 7
Constructing a Matrix Diagram
Write final-level means from Tree

diagram forming vertical axis
Write in Evaluation categories
(efficacy, practicability, and rank) on
horizontal
axis.
Examine final-level
means to
identify whom will implement them
Write names along horizontal axis
Matrix Diagrams
Slide 5 0f 7
Constructing a Matrix Diagram (cont.)
Label group of columns as

Responsibilities
Label right-hand end of horizontal
axis as Remarks
Examine each cell and insert the
appropriate symbol:
Efficacy: O=good, =satisfactory, X=none
Practicability: O=good,=satisfactory,
X=none
Matrix Diagrams
Slide 6 0f 7
Constructing a Matrix Diagram (cont.)
Determine score for each

combination of symbols, record in
rank
column
Examine
cells under Responsibility
Columns, insert double-circle for
Principal and single-circle for
Subsidiary
Fill out remarks column and record
meanings of symbol
Matrix Diagrams
Slide 7 0f 7
Completing a Matrix Diagram

O
=1
=2
=3
Subsidia ry
Responsibilities
Hold 4 times/month
At every meeting
1
4
M em ber
Leader
M anager
S it e Q C c ir c le
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
Rank
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
Principal
P r a c t ic a b ilit y
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
=4
=5
=6
E f f ic a c y
Eva luation
O
X
X
Q C c ir c le s u p p o r t e r
O
O
O
O
O
At least 3 times/year/person
O
O
O
O
Re ma rks
O
Arrow Diagrams
Slide 1 0f 7
For Working Out Optimal Schedules and

Controlling Them Effectively
Shows relationships among tasks

needed to implement a plan
Network technique using nodes for

events and arrows for activities
Used in PERT
(Program Evaluation and
Review Technique)
Method)
and CPM (Critical Path
Arrow Diagrams
Slide 2 0f 7
Advantages of Arrow Diagrams

Allows overall task to viewed and
potential snags to be identified
before work starts
Leads to discovery of possible

improvements
Makes it easy to monitor progress of

work
Deals promptly with changes to plan
Arrow Diagrams
Slide 3 0f 7
Advantages of Arrow Diagrams (cont.)

Promotes understanding and
agreement among group
Strategy
Constraints
4
1
12
5
10
11
Activity
13
Arrow Diagrams
Slide 4 0f 7
Constructing an Arrow Diagram
From strategies on Tree diagram,

select one (Objective of Arrow Diagram)
Identify constraints to Objective
List all activities necessary to
achieving Objective
Write all essential activities on
separate cards
Arrow Diagrams
Slide 5 0f 7
Constructing an Arrow Diagram (cont.)
Organize cards in sequential order

of activities
Remove any duplicate activities
Review order of activities, find
sequence with greatest amount of
activities
Arrange parallel activities
Arrow Diagrams
Slide 6 0f 7
Constructing an Arrow Diagram (cont.)
Examine path, number nodes in

sequence from left to right
Record names and other necessary
information
Arrow Diagrams
Slide 7 0f 7
Completing an Arrow Diagram

Strategy
Constraints
12
10
11
Activity
7
13
Process Decisions Program

Charts
Slide 1 0f 7
For Producing the Desired Result from

Many
Possible
Used Outcomes
to plan various contingencies
Used for getting activities back on

track
Steers events in required direction

if unanticipated problems occur
Finds feasible counter measures to

Charts
Slide 2 0f 7
Advantages of Process Decisions

Program Charts (PDPCs)
Facilitates forecasting
Uses past to anticipate contingencies
Enables problems to pinpointed
Illustrates how events will be directed
to successful conclusion
Enables those involved to understand
decision-makers intentions

Charts
Slide 3 0f 7
Advantages of PDPCs (cont.)

Fosters cooperation and
communication in group
Easily modified and easily understood
Start
NO
NO
NO
YES
YES
NO
YES
NO
GOAL
NO
NO

Charts
Slide 4 0f 7
Constructing a PDPC
Select a highly effective, but

difficult strategy from the Tree
Decide
diagramon a goal (most desirable
outcome)
Identify existing situation (Starting
point)
Identify constraints of objective
List activities to reach goal and
potential problems with each
activity

Charts
Slide 5 0f 7
Constructing an PDPC (cont.)
Review list. Add extra activities or

problems not thought of previously
Prepare contingency plan for each
step and review what action is
needed if step is not achieved
Examine carefully to check for
inconsistencies and all important
factors are included

Charts
Slide 6 0f 7
Constructing an PDPC (cont.)
Examine to make sure all

contingency plans are adequate

Charts
Completing a PDPC
NO
NO
YES
Slide 7 0f 7
Start
NO
YES
NO
NO
NO
YES
NO
GOAL

Slide 1 0f 6
Principal Component Analysis
Technique quantifies and arranges

data presented in Matrix
Based solely on numerical data
Finds indicators that differentiate

and attempt to clarify large
amount of information

Slide 2 0f 6
Advantages of Principal Component

Can be used inAnalysis
various fields (market
surveys, new product planning, process
analysis)
Can be when used when Matrix

diagram does not give sufficient
information
Useful as Prioritization Grid

Slide 3 0f 6
Constructing a Prioritization Grid

Source: Foster, S., Managing Quality (Upper Saddle River, NJ: Prentice Hall, 2001)
Determine your goal, your

alternatives, and criteria for
Place
decision
selection in order of
importance
Apply percentage weight to each
option (all weights should add up to 1)
Sum individual ratings to establish
overall ranking (Divide by number of
options for average ranking)

Slide 4 0f 6
Constructing a Prioritization Grid (cont.)
Rank order each option with

respect to criterion (Average the
rankings and apply a completed ranking)
Multiply weight by associated rank

in Matrix (in example, 4 is best, 1 is worst)
Result is Importance Score
Add up Importance Scores for each
option

Slide 5 0f 6
Constructing a Prioritization Grid (cont.)
Rank order the alternatives

according to importance
See completed the diagram

Slide 6 0f 6
Completing a Prioritization Grid

Criteria
Customer Acceptance
(most important)
Strength
Importance Option
Reliability (least important) Sum Score Ranking
Cost
Design A
Percentage weight
Rank
Importance score
.40
4
1.6
.30
3
.90
.20
3
.60
.10
1
.10
3.2
1 (tie)
Design B
Percentage weight
Rank
Importance score
.30
3
.90
.40
4
1.6
.10
1
.10
.20
2
.40
3.0
Design C
Percentage weight
Rank
Importance score
.25
1
.25
.25
2
.50
.25
4
1
.25
3
.75
2.5
Design D
Percentage weight
Rank
Importance score
0.3
3
.90
.10
1
.10
.20
3
.60
.40
4
1.6
3.2
1 (tie)
Sum of weights
Average weight
Criterion Ranking
1.25
.31
1
1.05
.26
2
.75
.19
4
.95
.24
3
Options
Review
Affinity Diagrams
Relations Diagrams
Tree Diagrams
Matrix Diagrams
Arrow Diagrams
Process Decision Program Charts
Keys to Successfully Using the
Slide 1 0f 5
Mental Attitudes
- Keen awareness to the actual problem
- Eagerness to solve problem
- Be highly motivated for the challenge
Four Specific Keys
Understand the problem

Select the right tool for the job
Obtain appropriate verbal data
Interpret analytical results
Slide 2 0f 5
4 Specific Keys
Understand the problem

Stage 1 - problem is unclear and not obvious
what exact issue should be
addressed
Stage 2 - problem is obvious, but causes
unknown
explore causes and single out valid
ones
Stage 3 - problem and causes are known

4 Specific Keys
Slide 3 0f 5
(cont.)
Selecting Right tool for the Job

Stage 1 - Collect verbal information on events
(Affinity Diagram)
Stage 2 - Choose tool to identify causes
(Relations Diagram / Matrix
Diagram)
Stage 3 - List strategies and activities
(Tree Diagram / Relations Diagram)
Plan actual activities
(Arrow Diagram / PDPC Chart)

4 Specific Keys
Slide 4 0f 5
(cont.)
Obtaining appropriate verbal data

Three types of verbal data:
- Facts; factual observations expressed in words
- Opinions; factual information colored by opinion
- Ideas; New concepts created by analyzing facts
.Group
Discussions:
- Ensures common understanding
- All data should be without bias or
distortion
- Data should fit objective of the analysis

4 Specific Keys
Slide 5 0f 5
(cont.)
Interpreting Analytical Results

Information must be obtained for
accomplishing
objectives from:
- Completed diagrams; or
- Process of completing diagrams
Analyze actual information obtained:
- Prepare summarized report with findings,
conclusions, and processes used
- Check if necessary data has been
obtained, if not
Practical Application of
Slide 1 0f 5
Example; Relations Diagram

Abilities Required for Applying New Seven QC
Tools
Complete the following
Relations
Diagram
- Review notes for clarity
- Get in groups of 4-5 per table
(work as a
team!)
- Topic - Using the New Seven QC Tools

skillfully
- Cause cards- will be provided

categorized)
(not
Slide 2 0f 5
Abilities Required for Applying New Seven QC Tools
Primary
Cause
Primary
Cause
Use N7
Skillfully
Primary
Cause
Primary
Cause
A
B
C
D
E
F
G
H
I
J
K
L
M
Slide 3 0f 5
Abilities Required for Applying New Seven QC

Tools
Cause
(hints areseriousness
in yellow) of problem
Interpret data
clearlyStatements
N Understand
Select appropriate tool
Think systematically
Give opinions
Know what the problem is
Extract necessary information
Collect reliable verbal data
Think multidimensionally
Obtain facts
Interpret analytical results
Generate ideas
Know that distorted data is useless
Grasp overall pictured
O
P
Q
R
S
T
U
V
W
X
Y
Z
Think flexibly from various standpoints

Obtain appropriate verbal data
Expose core of problem
Communicate well
Accurately understand real problem
Have excellent intuition
See to heart of problem
Select appropriate type of verbal data
Think in terms of word-based diagram
Express genuine thoughts
Hear and respect other's opinions
Generate highly accurate verbal data
Slide 4 0f 5
Abilities Required for Applying New Seven QC Tools
F
T
Primary
Cause
Primary
Cause
Use N7
Skillfully
Primary
Cause
B
L
I
Slide 5 0f 5
Solution for Abilities Required for Applying New Seven QC Tools
Use N7
Skillfully
M
C
Y
O
Summary
Benefits of New Seven Q.C. Tools

1- Provide Training in Thinking
2- Raise Peoples Problem Solving Confidence
3- Increase Peoples Ability to Predict Future
Events
Roles of New Seven Q.C. Tools

12345-
Express verbal data diagrammatically

Make information visible
Organize information intelligibly
Clarify overall picture and fine details
Get more people involved
Bibliography
Foster, Thomas. Managing Quality. An Integrative Approach .
Upper Saddle River : Prentice Hall, 2001.
Nayatani, Yoshingobu, Eiga, Toru, Futami, Ryoji, Miyagawa,
Hiroyuki, and Loftus, John. The Seven New QC Tools:
Practical Applications for Managers. Tokyo : 3A
Corporation, 1994.
TQM: The 9 TQM Tools. Internet
http://www.iqd.com/pfttools.htm.

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The New Seven

What are the

New Seven Q.C. Tools

New Seven Q.C. Tools

Committee of J.U.S.E. - 1972

Aim was to develop more QC

Work in conjunction with original

New set of methods (N7) - 1977

New Seven Q.C. Tools

Developed to organize verbal data

Basic 7 tools effective for data

Used together increases TQM

What are the

Basic Seven Q.C. Tools?

Cause and Effect Diagrams

Relation Between New Seven

Define problem after

Define problem before

The Basic Seven Tools

The Seven New Tools

New Seven Q.C. Tools

New Seven Q.C. Tools

Enhanced Keys to Organizational Reform

Assess situations from various

New Seven Q.C. Tools

Five Objectives of Organizational Reform

New Seven Q.C. Tools

Unstructured Problem [must be put into solvable form]

Problem is in solvable form

New Seven Q.C. Tools

For Pinpointing the Problem in a

Organizes the data into groups

Makes it feasible for further

New Seven Q.C. Tools

Advantages of Affinity Diagrams

Permits the problem to be pinned

Ensures everyone clearly recognizes

Incorporates opinions of entire group

New Seven Q.C. Tools

Advantages of Affinity Diagrams (cont.)

Raises everyones level of awareness

Spurs to the group into action

New Seven Q.C. Tools

Constructing an Affinity Diagram

New Seven Q.C. Tools

Constructing an Affinity Diagram

Move data cards into groups of

New Seven Q.C. Tools

Constructing an Affinity Diagram

Lay the groups outs, keeping the

New Seven Q.C. Tools

Completing an Affinity Diagram

New Seven Q.C. Tools

For Finding Solutions Strategies by

unraveling the logical connection

Allows for Multi-directional

Also known as Interrelationship

New Seven Q.C. Tools