New 7 Tools

11/30/2005
The New 7 Tools
The New 7 Tools
Jopie J. Bambang
1
The New 7 Tools
Affinity Diagrams
Relations Diagrams
The New 7 Tools
Tree Diagrams
Matrix Diagrams
Arrow Diagrams
¡Process Decision Program Charts
¢Matrix Data Analysis
Jopie J. Bambang
2
PT. Evox Rifa Indonesia 1

11/30/2005
History of N7
ØCommittee of J.U.S.E. - 1972

ØAim was to develop more QC techniques with
The New 7 Tools
design approach
ØWork in conjunction with original Basic Seven
Tools
ØNew set of methods (N7) - 1977
Jopie J. Bambang
3
History of N7
ØDeveloped to organize verbal data

diagrammatically.
ØBasic 7 tools effective for data analysis,
The New 7 Tools
process control, and quality improvement

(numerical data)
ØUsed together increases TQM effectiveness
Jopie J. Bambang
4

11/30/2005
What are the

Basic Seven Q.C. Tools?
Flow Charts
Run Charts
The New 7 Tools
Histograms
Pareto Diagrams
Cause and Effect Diagrams
¡Scatter Diagrams
¢Control Charts
Jopie J. Bambang
5
Relation Between N7 Tools & Basic

Seven Tools
FACTS
Data
The New 7 Tools
Numerical Data Verbal Data

Define problem after Define problem before
collecting numerical data collecting numerical data
The Basic Seven Tools The Seven New Tools
•Analytical approach •Generate Ideas

Organize •Formulate plans
Information
Jopie J. Bambang
6

11/30/2005
Benefits of Incorporating N7
Enhanced Capabilities
Organize verbal data
Generate ideas
The New 7 Tools
Improve planning
Eliminate errors and omissions
Explain problems intelligibly
¡Secure full cooperation
¢Persuade powerfully
Jopie J. Bambang
7
Enhanced Keys to Organizational Reform

Assess situations from various angles
Clarify the desired situation
The New 7 Tools
Prioritize tasks effectively

Proceed systematically
Anticipate future events
¡Change proactively
¢Get things right the first time
Jopie J. Bambang
8

11/30/2005
Five Objectives of Organizational Reform

which will establish a Culture that:
Identifies problems
The New 7 Tools
Gives importance to planning

Stresses the importance of the process
Prioritizes tasks
Encourages everyone to think
systematically
Jopie J. Bambang
9
Unstructured Problem [must be put into solvable form]
The Seven New Tools
Problem is mapped
Problem becomes Thoughts are Plans are Problem becomes

The New 7 Tools
obvious to all easily organized easily laid obvious to all
People understand Problem can be Nothing is Nub of problem

problem clearly articulated omitted is identified
Cooperation is Countermeasures
Things go well
obtained are on target
Problem is in solvable form
Jopie J. Bambang
10

11/30/2005
1. Affinity Diagrams Slide 1 0f 7
For Pinpointing the Problem in a Chaotic

Situation and Generating Solution Strategies
ØGathers large amounts of intertwined
The New 7 Tools
verbal data (ideas, opinions, issues)

ØOrganizes the data into groups based on
natural relationship
ØMakes it feasible for further analysis and to
find a solution to the problem.
Jopie J. Bambang
11
Advantages of Affinity Diagrams

ØFacilitates breakthrough thinking and stimulate
fresh ideas
The New 7 Tools
ØPermits the problem to be pinned down

accurately
ØEnsures everyone clearly recognizes the
problem
ØIncorporates opinions of entire group
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12

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Advantages of Affinity Diagrams (cont.)

ØFosters team spirit
ØRaises everyone’s level of awareness
The New 7 Tools
ØSpurs 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
Affinity Statement
Data Card Data Card
Data Card
Jopie J. Bambang
13
Constructing an Affinity Diagram

Group Method Approach
Select a topic
The New 7 Tools
Collect verbal data by brainstorming

Discuss info collected until everyone
understands it thoroughly
Write each item on separate data card
Spread out all cards on table
Jopie J. Bambang
14

11/30/2005

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

The New 7 Tools
themes (natural affinity for each other)

¢Combine statements on data cards to new
Affinity statement
£Make new card with Affinity statement
¤Continue to combine until less than 5
groups
Jopie J. Bambang
15

The New 7 Tools
¥Lay the groups outs, keeping the affinity

clusters together
Next, complete the diagram
Jopie J. Bambang
16

11/30/2005
Completing an Affinity Diagram

Topic
The New 7 Tools
Affinity Statement Affinity Statement Affinity Statement

Data Card Data Card

Affinity Statement
Data Card Data Card
Data Card
Jopie J. Bambang
17
Source: Nayatani, Y., The Seven New QC Tools (Tokyo, Japan, 3A Corporation, 1984)
2. Relations Diagrams Slide 1 0f 7
For Finding Solutions Strategies by Clarifying

Relationships with Complex Interrelated Causes
ØResolves tangled issues by unraveling the
The New 7 Tools
logical connection
ØAllows for “Multi-directional” thinking rather
than linear
ØAlso known as Interrelationship diagrams
Jopie J. Bambang
18

11/30/2005
Advantages of Relations Diagrams

ØUseful at planning stage for obtaining
perspective on overall situation
The New 7 Tools
ØFacilitates consensus among team

ØAssists to develop and change people’s
thinking
ØEnables priorities to be identified accurately
Jopie J. Bambang
19
Advantages of Relations Diagrams (cont.)

ØMakes the problem recognizable by clarifying
the relationships among causes
Tertiary Tertiary
The New 7 Tools
Cause Secondary Cause

Primary Cause Cause
Primary Cause Tertiary

Secondary Cause
Why doesn’t
Cause Secondary
X happen?
Cause
Primary Cause Primary Cause

Secondary 6th level
Cause
Tertiary Cause
Secondary Tertiary
Cause
Cause
4th level Cause 4th level 5th level
Cause Cause Cause
Jopie J. Bambang
20

11/30/2005
Constructing a Relations Diagram

Express the problem in form of “Why isn’t
something happening?”
The New 7 Tools
Each member lists 5 causes affecting

problem
Write each item on a card
Discuss info collected until everyone
understands it thoroughly
Jopie J. Bambang
21

Move cards into similar groups

The New 7 Tools
¡Asking why, explore the cause-effect

relationships, and divide the cards into
primary, secondary and tertiary causes
¢Connect all cards by these relationships
£Further discuss until all possible causes
have been identified
Jopie J. Bambang
22

11/30/2005

¤Review whole diagram looking for

The New 7 Tools
relationships among causes

¥Connect all related groups
Jopie J. Bambang
23
Completing a Relations Diagram

Tertiary Tertiary
Cause Secondary Cause
Primary Cause Cause
The New 7 Tools
Primary Cause Tertiary

Secondary Cause
Cause Why doesn’t
X happen? Secondary
Cause
Primary Cause Primary Cause

6th level
Secondary
Cause
Tertiary Cause
Cause Tertiary
Secondary
Cause
Cause 4th level
4th level 5th level
Cause Cause Cause
Jopie J. Bambang
24

11/30/2005
3. Tree Diagrams Slide 1 0f 5
For Systematically Pursuing the Best Strategies

for Attaining an Objective
ØDevelops a succession of strategies for
The New 7 Tools
achieving objectives
ØReveals methods to achieve the results.
ØAlso known as Systematic diagrams or
Dendrograms
Jopie J. Bambang
25
Advantages of Tree Diagrams

ØSystematic and logical approach is less likely
that items are omitted
The New 7 Tools
ØFacilitates agreement among team

ØAre extremely convincing with strategies
4th means
Secondary means 3rd means 4th means
3rd means 4th means
Primary means 3rd means 4th means
4th means
To Secondary means 3rd means
4th means
Accomplish 4th means
Constraints
Jopie J. Bambang
26

11/30/2005
Constructing a Tree Diagram

Write Relations Diagram topic (Objective card)
The New 7 Tools
Identify constraints on how objective can

be achieved
Discuss means of achieving objective
(primary means, first level strategy)
Take each primary mean, write ob-jective
for achieving it (secondary means)
Jopie J. Bambang
27
Constructing an Tree Diagram

Continue to expand to the fourth level

¡Review each system of means in both
The New 7 Tools
directions (from objective to means and means to

objective)
¢Add more cards if needed
£Connect all levels
Jopie J. Bambang
28

11/30/2005
Completing a Tree Diagram 4th means
3rd means 4th means

Secondary means
3rd means 4th means
Primary means 4th means
3rd means
The New 7 Tools
4th means
3rd means
Secondary means
To 4th means
Accomplish 4th means
3rd means 4th means
4th means
Primary means
3rd means 4th means
Constraints
Jopie J. Bambang
29
4. Matrix Diagrams Slide 1 0f 7
For Clarifying Problems by “Thinking

Multidimensionally”
ØConsists of a two-dimensional array to
The New 7 Tools
determine location and nature of problem

ØDiscovers key ideas by relationships
represented by the cells in matrix.
Jopie J. Bambang
30

11/30/2005
Advantages of Matrix Diagrams

ØEnable data on ideas based on extensive
experience
The New 7 Tools
ØClarifies relationships among different

elements
ØMakes overall structure of problem
immediately obvious
ØCombined from two to four types of diagrams,
location of problem is clearer.
Jopie J. Bambang
31
Advantages of Matrix Diagrams (cont.)

Ø5 types: L-shaped, T-shaped, Y-shaped, X-
shaped, and C-shaped
O O =1 O =4 Principa l
The New 7 Tools
O =2 O X =5 O Subsidia ry
=3 X =6
Eva lua tion Re sponsibilitie s
pporter
Ccircle
ility
t
lan
lan
Ccirclesu
Re ma rks
racticab
/P
/P
er
fficacy
er
n
ag
er
ectio
ectio
iteQ
emb
ead
k
an
an
M
Q
R
E
4th level means

from Tree diagram O O 1 O
4th level means
from Tree diagram O O 1 O Hold 4 times/month
4th level means
from Tree diagram O 3 O At every meeting
4th level means
from Tree diagram O 2 O
4th level means
from Tree diagram O X 5 O At least 3 times/year/person
4th level means
from Tree diagram O O 1 O O
4th level means
from Tree diagram 4 O
Jopie J. Bambang
32

11/30/2005
Constructing a Matrix Diagram
Write final-level means from Tree diagram

forming vertical axis
The New 7 Tools
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
Jopie J. Bambang
33
Constructing a Matrix Diagram (cont.)

Label group of columns as “Responsibilities”
¡Label right-hand end of horizontal axis as
The New 7 Tools
“Remarks”
¢Examine each cell and insert the
appropriate symbol:
Efficacy: O=good, 5=satisfactory, X=none
Practicability: O=good,5=satisfactory, X=none
Jopie J. Bambang
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11/30/2005
Constructing a Matrix Diagram (cont.)

£Determine score for each combination of
symbols, record in rank column
¤Examine cells under Responsibility
The New 7 Tools
Columns, insert double-circle for Principal

and single-circle for Subsidiary
¥Fill out remarks column and record
meanings of symbol
Jopie J. Bambang
35
Completing a Matrix Diagram

O O =1 O =4 Principa l
O =2 O X =5 O Subsidia ry
=3 X =6
Eva lua tion Re sponsibilitie s
porter
The New 7 Tools
p
Ccircle
ility
t
lan
lan
Ccirclesu
Re ma rks
racticab
/P
/P
er
fficacy
er
n
ag
er
ectio
ectio
iteQ
emb
ead
k
an
an
M
Q
R
E
4th level means

4th level means
from Tree diagram O O 1 O Hold 4 times/month
4th level means
from Tree diagram O 3 O At every meeting
4th level means
4th level means
from Tree diagram O X 5 O At least 3 times/year/person
4th level means
from Tree diagram O O 1 O O
4th level means
from Tree diagram 4 O
4th level means
4th level means
4th level means
Jopie J. Bambang
36

11/30/2005
5. Arrow Diagrams Slide 1 0f 7
For Working Out Optimal Schedules and

Controlling Them Effectively
ØShows relationships among tasks needed to
The New 7 Tools
implement a plan
ØNetwork technique using nodes for events
and arrows for activities
ØUsed in PERT (Program Evaluation and Review
Technique) and CPM (Critical Path Method)
Jopie J. Bambang
37
Advantages of Arrow Diagrams

ØAllows overall task to viewed and potential
snags to be identified before work starts
The New 7 Tools
ØLeads to discovery of possible improvements

ØMakes it easy to monitor progress of work
ØDeals promptly with changes to plan
ØImproves communication among team
Jopie J. Bambang
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11/30/2005
Advantages of Arrow Diagrams (cont.)

ØPromotes understanding and agreement
among group
The New 7 Tools
Strategy Constraints
4 12
1 2 3 5 9 10 13
Activity
6 8 11
Jopie J. Bambang
39
Constructing an Arrow Diagram

From strategies on Tree diagram, select
one (Objective of Arrow Diagram)
The New 7 Tools
Identify constraints to Objective

List all activities necessary to achieving
Objective
Write all essential activities on separate
cards
Jopie J. Bambang
40

11/30/2005
Constructing an Arrow Diagram (cont.)

Organize cards in sequential order of
activities
The New 7 Tools
¡Remove any duplicate activities

¢Review order of activities, find sequence
with greatest amount of activities
£Arrange parallel activities
Jopie J. Bambang
41
Constructing an Arrow Diagram (cont.)

¤Examine path, number nodes in sequence
from left to right
The New 7 Tools
¥Record names and other necessary

information
Jopie J. Bambang
42

11/30/2005
Completing an Arrow Diagram

Strategy Constraints
The New 7 Tools
4 12
1 2 3 5 9 10 13
Activity
6 8 11
Jopie J. Bambang
43
6. Process Decisions Program Charts Slide 1 0f 7
For Producing the Desired Result from Many

Possible Outcomes
ØUsed to plan various contingencies
The New 7 Tools
ØUsed for getting activities back on track

ØSteers events in required direction if
unanticipated problems occur
ØFinds feasible counter measures to
overcome problems
Jopie J. Bambang
44

11/30/2005
Advantages of Process Decisions Program Charts

(PDPC’s)
ØFacilitates forecasting
The New 7 Tools
ØUses past to anticipate contingencies

ØEnables problems to pinpointed
ØIllustrates how events will be directed to
successful conclusion
ØEnables those involved to understand
decision-makers intentions
Jopie J. Bambang
45
Advantages of PDPC’s (cont.)

ØFosters cooperation and communication in
group
ØEasily modified and easily understood
The New 7 Tools
Start
NO
NO NO
NO
YES YES NO NO
YES
NO
GOAL
Jopie J. Bambang
46

11/30/2005
Constructing a PDPC
Select a highly effective, but difficult
The New 7 Tools
strategy from the Tree diagram

Decide on 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
Jopie J. Bambang
47
Constructing an PDPC (cont.)

¡Review list. Add extra activities or problems
not thought of previously
The New 7 Tools
¢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
Jopie J. Bambang
48

11/30/2005
Constructing an PDPC (cont.)

¤Examine to make sure all contingency plans
The New 7 Tools
are adequate
Jopie J. Bambang
49
Completing a PDPC Start

The New 7 Tools
NO
NO NO
NO
YES YES NO NO
YES
NO
GOAL
Jopie J. Bambang
50

11/30/2005
7. Matrix Data Analysis Slide 1 0f 6
Principal Component Analysis

ØTechnique quantifies and arranges data
presented in Matrix
The New 7 Tools
ØBased solely on numerical data

ØFinds indicators that differentiate and
attempt to clarify large amount of
information
Jopie J. Bambang
51
Advantages of Principal Component Analysis

ØCan be used in various fields (market surveys, new
The New 7 Tools
product planning, process analysis)
ØCan be when used when Matrix diagram does

not give sufficient information
ØUseful as Prioritization Grid
Jopie J. Bambang
52

11/30/2005
Constructing a Prioritization Grid

Determine your goal, your alternatives, and
criteria for decision
The New 7 Tools
Place 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)
Jopie J. Bambang
53
Constructing a Prioritization Grid (cont.)

Rank order each option with respect to
criterion (Average the rankings and apply a completed
The New 7 Tools
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

Jopie J. Bambang
54

11/30/2005
Constructing a Prioritization Grid (cont.)

¤Rank order the alternatives according to
The New 7 Tools
importance
See completed the diagram
Jopie J. Bambang
55
Completing a Prioritization Grid

Criteria Customer Acceptance Strength Importance Option
(most important) Cost Reliability (least important) Sum Score Ranking
Options
Design A
Percentage weight .40 .30 .20 .10
Rank 4 3 3 1
The New 7 Tools
Importance score 1.6 .90 .60 .10 3.2 1 (tie)

Design B
Rank 3 4 1 2
Importance score .90 1.6 .10 .40 3.0 2
Design C
Rank 1 2 4 3
Importance score .25 .50 1 .75 2.5 3
Design D
Percentage weight 0.3 .10 .20 .40
Rank 3 1 3 4
Importance score .90 .10 .60 1.6 3.2 1 (tie)
Sum of weights 1.25 1.05 .75 .95
Average weight .31 .26 .19 .24
Criterion Ranking 1 2 4 3
Jopie J. Bambang
56

11/30/2005
Review N7
Affinity Diagrams
Relations Diagrams
Tree Diagrams
The New 7 Tools
Matrix Diagrams
Arrow Diagrams
¡Process Decision Program Charts
¢Matrix Data Analysis
Jopie J. Bambang
57
Keys to Successfully Using N7
Mental Attitudes
- Keen awareness to the actual problem
- Eagerness to solve problem
The New 7 Tools
- 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
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11/30/2005
4 Specific Keys
Understand the problem
Stage 1 - problem is unclear and not obvious
The New 7 Tools
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
required action is unknown
strategies and plan must be developed
Jopie J. Bambang
59
4 Specific Keys (cont.)

Selecting Right tool for the Job
Stage 1 - Collect verbal information on events
The New 7 Tools
(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)
Jopie J. Bambang
60

11/30/2005

Obtaining appropriate verbal data
Three types of verbal data:
- Facts; factual observations expressed in words
The New 7 Tools
- 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
Jopie J. Bambang
61

Interpreting Analytical Results
Information must be obtained for accomplishing
objectives from:
The New 7 Tools
- 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
- Discover the cause and take appropriate action
Jopie J. Bambang
62

11/30/2005
Practical Application of N7
Example; Relations Diagram

”Abilities Required for Applying New Seven QC Tools”
Complete the following Relations Diagram
- Review notes for clarity
The New 7 Tools
- 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 (not categorized)
- Arrange cards to complete diagram
(some hints have been provided)
Jopie J. Bambang
63
Primary
Cause
The New 7 Tools
Primary Use N7 Primary

Cause Skillfully Cause
Primary
Cause
Jopie J. Bambang
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11/30/2005
Cause Statements (hints are in yellow)
A Interpret data clearly N Understand seriousness of problem
B Select appropriate tool O Think flexibly from various standpoints
C Think systematically P Obtain appropriate verbal data
The New 7 Tools
D Give opinions Q Expose core of problem

E Know what the problem is R Communicate well
F Extract necessary information S Accurately understand real problem
G Collect reliable verbal data T Have excellent intuition
H Think multidimensionally U See to heart of problem
I Obtain facts V Select appropriate type of verbal data
J Interpret analytical results W Think in terms of word-based diagram
K Generate ideas X Express genuine thoughts
L Know that distorted data is useless Y Hear and respect other's opinions
M Grasp overall pictured Z Generate highly accurate verbal data
Jopie J. Bambang
65
Primary
T Cause
The New 7 Tools
Primary Use N7
Cause Skillfully B
Primary
R Cause L
Y I
Jopie J. Bambang
66

11/30/2005
Solution for ”Abilities Required for Applying New Seven QC Tools”
F S U
M T E N
The New 7 Tools
Use N7
C W J Skillfully B G
H R P X L
Y A Z V I Q
O K
D
Jopie J. Bambang
67
Summary N7
Benefits of New Seven Q.C. Tools

1- Provide Training in Thinking
2- Raise People’s Problem Solving Confidence
3- Increase People’s Ability to Predict Future Events
The New 7 Tools
Roles of New Seven Q.C. Tools

1- Express verbal data diagrammatically
2- Make information visible
3- Organize information intelligibly
4- Clarify overall picture and fine details
5- Get more people involved
Jopie J. Bambang
68

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11/30/2005

The New 7 Tools

The New 7 Tools

The New 7 Tools

PT. Evox Rifa Indonesia 1

ØCommittee of J.U.S.E. - 1972

ØDeveloped to organize verbal data

process control, and quality improvement

PT. Evox Rifa Indonesia 2

What are the

Relation Between N7 Tools & Basic

Numerical Data Verbal Data

The Basic Seven Tools The Seven New Tools

•Analytical approach •Generate Ideas

PT. Evox Rifa Indonesia 3

Enhanced Keys to Organizational Reform

Prioritize tasks effectively

PT. Evox Rifa Indonesia 4

Five Objectives of Organizational Reform

Gives importance to planning

Problem becomes Thoughts are Plans are Problem becomes

obvious to all easily organized easily laid obvious to all

People understand Problem can be Nothing is Nub of problem

Problem is in solvable form

PT. Evox Rifa Indonesia 5

1. Affinity Diagrams Slide 1 0f 7

For Pinpointing the Problem in a Chaotic

verbal data (ideas, opinions, issues)

1. Affinity Diagrams Slide 2 0f 7

Advantages of Affinity Diagrams

ØPermits the problem to be pinned down

PT. Evox Rifa Indonesia 6

1. Affinity Diagrams Slide 3 0f 7

Advantages of Affinity Diagrams (cont.)

ØSpurs to the group into action

1. Affinity Diagrams Slide 4 0f 7

Constructing an Affinity Diagram

Collect verbal data by brainstorming

PT. Evox Rifa Indonesia 7

1. Affinity Diagrams Slide 5 0f 7

Constructing an Affinity Diagram

¡Move data cards into groups of similar

themes (natural affinity for each other)

1. Affinity Diagrams Slide 6 0f 7

Constructing an Affinity Diagram

¥Lay the groups outs, keeping the affinity

PT. Evox Rifa Indonesia 8

1. Affinity Diagrams Slide 7 0f 7

Completing an Affinity Diagram

Affinity Statement Affinity Statement Affinity Statement

Data Card Data Card

2. Relations Diagrams Slide 1 0f 7

For Finding Solutions Strategies by Clarifying

PT. Evox Rifa Indonesia 9

2. Relations Diagrams Slide 2 0f 7

Advantages of Relations Diagrams

ØFacilitates consensus among team

2. Relations Diagrams Slide 3 0f 7

Advantages of Relations Diagrams (cont.)

Prioritize tasks effectively

Gives importance to planning

Collect verbal data by brainstorming

Each member lists 5 causes affecting

Identify constraints on how objective can

Write final-level means from Tree diagram

Write in Evaluation categories (efficacy,