San Carlos University

Engineering Faculty
Technical language school
Technical English 4
Eng. Carlos Muoz

CLASSIC MANAGEMENT TOOLS

Name
Gabriela Acevedo
Monica Salazar
Csar Quiroz
Melissa Martinez
Oscar Garcia

ID
201313817
201314199
201212726
201212717
201020472

Guatemala August 18, 2015

OBJECTIVES
General:
To know when and how diagrams and charts are used. To be aware of, how
to compare categories, how the run chart, radar chart, scatter plot, histograms,
pareto chart, flowchart and control chart work. To identify problems and give
solutions with help of cause and effect.

Specifics:
1. To know which chart is better, in a way to compare categories.
2. To have an idea of how use pie and bar chart, in a comparison.
3. To describe the function of a run chart.
4. To identify the most appropriate use for the run chart.
5. To describe the function of a run chart.
6. To identify the most appropriate use for the run chart.
7. To define what are a scatter plots and their characteristics.
8. To define what are histograms and their characteristics.
9. To determine when to use the Pareto charts
10. To define when to use the cause and effect diagram
11. Describe the most important shapes used in a flowchart
12. Show the importance of control charts

INTRODUCTION

Management tools have been used for a long time, their main
purpose is to get organized in any job. The best tools are those which stand the
test of time, and which give you a lot of leverage over common problems. Some
tools are used for make comparisons between an actual result and a past one, this
is for get updated, this helps in how you can either improve or be at the same level
if production is going well in case or a pie chart or bar chart. Other tools are
focused only in one event, this means that this can be either related with
variables or only one variable, just to see the strengths and weakness in a
procedure or in a result, like scatter plots, this are similar to line graphs in that they
use horizontal and vertical axes to plot data points or radar charts are usually used
to visually show the size of the gaps among a number of both current organization
performance areas and ideal performance areas all in the same graph to create a
general idea. Run charts display the fluctuations, constancy, increases and/or
decreases of one or more events or processes related to a specific area in the
work place, to identify improvement or demotions, through a determined amount of
time. Flowcharts are very useful to, because it seems like a process diagram, with
this diagram it is easy to identify rework loops and complexity in a process. Others
tools can be used to see problems at job, getting aware of causes and effects. This
work describes a variety of the best, most widely used management methods and
tools.

Pie Charts

A pie chart is a circular statistical graphic, which is divided into slices to

illustrate numerical proportion. In a
pie chart, the arc length of each lice,
is proportional to the quantity it
represents. They are used to show
classes

or

groups

of

data

in

proportion to the whole data set. The

entire pie represents all the data,
while each slice represents a different
class or group within the whole.

Pie charts are very widely used in the business world and the mass media.
However, they have been criticized, and many experts recommend avoiding them,
pointing out that research has shown it is difficult to compare different sections of a
given pie chart, or to compare data across different pie charts. Pie charts can be
replaced in most cases by other plots such as the bar chart, box plot or dot plots.

Bar Charts

Bar charts, like pie charts, are useful for comparing classes or groups of
data. In bar charts, a class or group can have a single category of data, or they can
be broken down further into multiple categories for greater depth of analysis. A bar
graph is a chart that uses either horizontal or vertical bars to show comparisons
among categories. One axis of the chart shows the specific categories being
compared, and the other axis represents a discrete value. Some bar graph present
bars clustered in groups of more than one, and others show the bars divided into
subparts to show cumulative effect.

Bar graphs can also be used for more

complex comparisons of data with grouped
bar charts. In a grouped bar chart, for each
categorical group there are two more bars.
These bar are color-coded to represent a
particular grouping. For a great bar chart you
should be aware of:

Watch out for inconsistent scales. If youre comparing two or more

charts, be sure they use the same scale.

Be sure that all your classes are equal.
Be sure that the interval between classes is consistent.

Run Chart

Run charts display the fluctuations, constancy, increases and/or decreases

of one or more events or processes related to a specific area in the work place, to
identify improvement or demotions, through a determined amount of time.

Since this type of charts displays its dependent variable on the y axis and a
certain amount of time on its x axis, this type of charts can only relate subjects that
are observable or analyzable on the same scale of time, this means you cannot
relate events that can be easily modify during different hours of the work day that
deliver an immediate result by the end of the day creating fluctuations on them with
an event that only shows results monthly.

To get the best use of this type of chart what you need is to display subjects
that are dependently related, such as, electricity bills, costs and profits of
production to analyze the relationship between the profits and the energy waste to
apply corrective actions such as machinery and software updates.
One advantage of the advantages of the run charts is that you can display as many
events as you want or need, as long as you put them in the same scale.

Radar Charts

Radar charts are usually used to visually show the size of the gaps among a
number of both current organization performance areas and ideal performance
areas all in the same graph to create a general idea.

This type of chart makes concentrations of strengths and weaknesses

visible, thats because it clearly displays the important categories of performance
and clearly defines full performance in each category to analyze. This sort of chart
also captures the different perceptions or developments of all the analyzed areas
on the organization or productive performance, it is therefore essential that the
evaluation includes varied perspectives to provide an overall realistic and useful
picture of performance

Radar charts information is related one to each other but it displays its
subjects of matter one next to another which shares the same scale represented
on the centered axis. The resulting radar chart will graphically show areas of
relative strength and relative weakness, as well as depicting general overall
performance in one single area.

Scatter Plots

Scatter plots are similar to line graphs in that they use horizontal and vertical
axes to plot data points. However, they have a very specific purpose. Scatter plots
show how much one variable is affected by another. The relationship between two
variables is called their correlation.
Scatter plots usually consist of a large body of data. The closer the data
points come when plotted to making a straight line, the higher the correlation
between the two variables, or the stronger the relationship.
If the data points make a straight line going from the origin out to high x- and
y-values, then the variables are said to have a positive correlation. If the line goes
from a high-value on the y-axis down to a high-value on the x-axis, the variables
have a negative correlation.

A perfect positive correlation is given the value of 1. A perfect negative

correlation is given the value of -1. If there is absolutely no correlation present the
value given is 0. The closer the number is to 1 or -1, the stronger the correlation, or
the stronger the relationship between the variables. The closer the number is to 0,
the weaker the correlation. So something that seems to kind of correlate in a

positive direction might have a value of 0.67, whereas something with an extremely
weak negative correlation might have the value -0.21.
Histograms
A histogram is a graphical representation of the distribution of numerical
data. It is an estimate of the probability distribution of a continuous variable
(quantitative variable) and was first introduced by Karl Pearson. To construct a
histogram, the first step is to "bin" the range of valuesthat is, divide the entire
range of values into a series of small intervalsand then count how many values
fall into each interval. A rectangle is drawn with height proportional to the count and
width equal to the bin size, so that rectangles about each other. A histogram may
also be normalized displaying relative frequencies. It then shows the proportion of
cases that fall into each of several categories, with the
sum of the heights equaling 1. The bins are usually
specified as consecutive, non-overlapping intervals of
a variable. The bins (intervals) must be adjacent, and
usually equal size. The rectangles of a histogram are
drawn so that they touch each other to indicate that
the original variable is continuous.
Histograms give a rough sense of the density of the data, and often for
density estimation: estimating the probability density function of the underlying
variable. The total area of a histogram used for probability density is always
normalized to 1. If the length of the intervals on the x-axis are all 1, then a
histogram is identical to a relative frequency plot.
A histogram can be thought of as a simplistic kernel density estimation,
which uses a kernel to smooth frequencies over the bins. This yields a smoother
probability density function, which will in general more accurately reflect distribution
of the underlying variable. The density estimate could be plotted as an alternative
to the histogram, and is usually drawn as a curve rather than a set of boxes.

Pareto Charts

A Pareto chart provides facts needed for setting priorities. It organizes and
displays information to show the relative importance of various problems or causes
of problems. It is a form of a vertical bar chart that puts items in order (from the
highest to the lowest) relative to some measurable effect of interest: frequency cost
or time.
The chart is based on the Pareto principle, which states that when several
factors affect a situation, a few factors will account for most of the impact. The
Pareto principle describes a phenomenon in which 80 percent of variation
observed in everyday processes can be explained by a mere 20 percent of the
causes of that variation.

Placing the items in descending order of frequency makes it easy to discern

those problems that are of greatest importance or those causes that appear to
account for most of the variation. Thus, a Pareto chart helps teams to focus their
efforts where they can have the greatest potential impact.

Pareto charts help teams focus on the small number of really important
problems or their causes. They are useful for establishing priorities by showing
which are the most critical problems to be tackled or causes to be addressed.
Comparing Pareto charts of a given situation over time can also determine whether

an implemented solution reduced the relative frequency or cost of that problem or

cause.
Here is an eight-step method for creating a Pareto chart:
1. Develop a list of problems, items or causes to be compared.
2. Develop a standard measure for comparing the items.
How often it occurs: frequency
How long it takes: time
How many resources it uses: cost
3. Choose a timeframe for collecting the data.
4. Tally, for each item, how often it occurred (or cost or total time it took). Then,
add these amounts to determine the grand total for all items. Find the
percent of each item in the grand total by taking the sum of the item, dividing
it by the grand total and multiplying by 100.
5. List the items being compared in decreasing order of the measure of
comparison, the most frequent to the least frequent. The cumulative percent
for an item is the sum of that items percent of the total and that of all the
other items that come before it in the ordering by rank.
6. List the items on the horizontal axis of a graph from highest to lowest. Label
the left vertical axis with the numbers (frequency, time or cost), then label
the right vertical axis with the cumulative percentages (the cumulative total
should equal 100 percent). Draw in the bars for each item.
7. Draw a line graph of the cumulative percentages. The first point on the line
graph should line up with the top of the first bar. Excel offers simple charting
tools you can use to make your graphs, or you can do them with paper and
pencil.
8. Analyze the diagram by identifying those items that appear to account for
most of the difficulty. Do this by looking for a clear breakpoint in the line
graph, where it starts to level off quickly. If there is not a breakpoint, identify
those items that account for 50 percent or more of the effect. If there
appears to be no pattern (the bars are essentially all of the same height),
think of some factors that may affect the outcome, such as day of week,
shift, age group of patients, home village. Then, subdivide the data and
draw separate Pareto charts for each subgroup to see if a pattern emerges.

Cause and Effect

Cause and Effect Analysis was devised by Professor Kaoru Ishikawa, a pioneer of
quality management, in the 1960s. The technique was then published in his 1990
book, "Introduction to Quality Control."
The diagrams that you create with are known as Ishikawa Diagrams or Fishbone
Diagrams (because a completed diagram can look like the skeleton of a fish).
Although it was originally developed as a quality control tool, you can use the
technique just as well in other ways. For instance, you can use it to:

Discover the root cause of a problem.

Uncover bottlenecks in your processes.
Identify where and why a process isn't working.

How to Use the Tool

Follow these steps to solve a problem with Cause and Effect Analysis:

Step 1: Identify the Problem

First, write down the exact problem you face. Where appropriate, identify who is
involved, what the problem is, and when and where it occurs.
Then, write the problem in a box on the left-hand side of a large sheet of paper,
and draw a line across the paper horizontally from the box. This arrangement,
looking like the head and spine of a fish, gives you space to develop ideas.

Step 2: Work Out the Major Factors Involved

Next, identify the factors that may be part of the problem. These may be systems,
equipment, materials, external forces, people involved with the problem, and so on.
Then draw a line off the "spine" of the diagram for each factor, and label each line.

Step 3: Identify Possible Causes

Now, for each of the factors you considered in step 2, brainstorm possible causes
of the problem that may be related to the factor.
Show these possible causes as shorter lines coming off the "bones" of the
diagram. Where a cause is large or complex, then it may be best to break it down
into sub-causes. Show these as lines coming off each cause line.

Step 4: Analyze Your Diagram

By this stage you should have a diagram showing all of the possible causes of the
problem that you can think of.
Depending on the complexity and importance of the problem, you can now
investigate the most likely causes further. This may involve setting up
investigations, carrying out surveys, and so on. These will be designed to test
which of these possible causes is actually contributing to the problem.

Flow chart
Flowcharts allow you to draw a picture of the way a process actually works
so that you can understand the existing process and develop ideas about how to
improve it. A high-level flowchart, showing six to 12 steps, gives a panoramic view
of a process. These flowcharts show clearly the major blocks of activity, or the
major system components, in a process.

High-level flowcharts are especially

useful in the early phases of a project.

A detailed flowchart is a close-up view of the process, typically showing
dozens of steps.

These flowcharts make it easy to identify rework loops and

complexity in a process.

Detailed flowcharts are useful after teams have

pinpointed issues or when they are making changes in the process

Using a flowchart has a variety of benefits:

It helps to clarify complex processes.

It identifies steps that do not add value to the internal or external customer,
including: delays; needless storage and transportation; unnecessary work,
duplication, and added expense; breakdowns in communication.

It helps team members gain a shared understanding of the process and use
this knowledge to collect data, identify problems, focus discussions, and
identify resources.

It serves as a basis for designing new processes

Control chart

Control charts, also known as Shewhart charts (after Walter A. Shewhart) or

process-behavior charts, in statistical process control are tools used to determine if
a manufacturing or business process is in a state of statistical control.
A control chart consists of:

Points representing measurements of a quality characteristic in

samples taken from the process at different times.

The mean of this statistic using all the samples is calculated. A center
line is drawn at the value of the mean of the statistic.

The standard error of the statistic is also calculated using all the
samples.

Upper and lower control limits (sometimes called "natural process

limits") that indicate the threshold at which the process output is
considered statistically 'unlikely' and are drawn typically at 3 standard
errors from the center line

Upper and lower warning or control limits, drawn as separate lines,

typically two standard errors above and below the center line.

Division into zones, with the addition of rules governing frequencies

of observations in each zone

CONCLUSION
1. Bar chart is better than a pie chart, because, it is clear to see
comparisons between categories or more of the same bar charts.
2. For a bar chart it is necessary to know which scale youre using, for
better comprehension.
3. Run chart main function is to analyze one or many processes or
events through a period of time
4. Run chart main purpose is to identify trends, increases or decreases
on specific areas.
5. Radar chart concentrates the weaknesses and strengths of current
and ideal performance.
6. Radar chart main purpose is to provide a graphic perspective of how
a team has evaluated a number of organizational performance areas
7. A scatter plot is a useful summary of a set of bivariate data (two
variables), usually drawn before working out a linear correlation
coefficient or fitting a regression line.
8. Histogram plots are used to better understand how frequently or
infrequently certain values occur in a given set of data.
9. The cause and effect diagram is useful when we want to discover the
root cause of a problem.
10. Pareto charts are extremely useful for analyzing what problems need
attention first
11. Flowcharts are used for processes, typically showing dozen of steps.
12. Flow chart is the close up of a process.

BIBLIOGRAPHY

1. Cleveland, William. The Elements of Graphing Data. 2nd Edition. US: Whiley
editorial. Chapters 2 and 3.

2. Gravetter, Frederick. Essentials of Statistics for the Behavioral Sciences. 6 th

edition. US: McGraw-Hill editorial. Pages 238 312.
3. USAC collaborates Technical English dept. Technical Language 4. 3 rd
edition. USAC editorial. Pages 45 52.