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NEW 7 MANAGEMENT NEW 7 MANAGEMENT TOOLS TOOLS By, By, Date: Date:

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Page 1: New 7 Management Tools

NEW 7 MANAGEMENT NEW 7 MANAGEMENT TOOLSTOOLS

By,By,

Date:Date:

Page 2: New 7 Management Tools

AGENDAAGENDA

WHY THE NEW SET OF TOOLSWHY THE NEW SET OF TOOLS

LIST OF TOOLSLIST OF TOOLS

INDIVIDUAL TOOLSINDIVIDUAL TOOLS

EXAMPLES EXAMPLES

Page 3: New 7 Management Tools

WHY THE NEW SET OF TOOLSWHY THE NEW SET OF TOOLS

To structure the brainstorming processTo structure the brainstorming process

SimplifySimplify

Remove fearRemove fear

To help create a comfort fit (minimal To help create a comfort fit (minimal dependence on statistics)dependence on statistics)

Improve penetrationImprove penetration

Increase applicationIncrease application

Page 4: New 7 Management Tools

LIST OF TOOLSLIST OF TOOLS

Affinity DiagramAffinity Diagram

Interrelationship diagraphInterrelationship diagraph

Tree DiagramTree Diagram

Matrix DiagramsMatrix Diagrams

Matrix AnalysisMatrix Analysis

PDPC, process decision program chartsPDPC, process decision program charts

Arrow diagramsArrow diagrams

Page 5: New 7 Management Tools

AFFINITY DIAGRAMAFFINITY DIAGRAM

DefinitionDefinition

An Affinity Diagram is a special type of An Affinity Diagram is a special type of brainstorming process that is used for brainstorming process that is used for organising large groups of information into organising large groups of information into meaningful categories. It helps us to clarify meaningful categories. It helps us to clarify and make sense of a large or complex and make sense of a large or complex problem problem

http://www.tin.nhs.uk/index.asp?pgid=1129

Page 6: New 7 Management Tools

AFFINITY DIAGRAMAFFINITY DIAGRAM

ProcessProcess

Record each idea on cards or notes Record each idea on cards or notes

Look for ideas that seem to be related Look for ideas that seem to be related

Sort cards into groups until all cards have Sort cards into groups until all cards have been used. been used.

http://en.wikipedia.org/wiki/Affinity_diagram

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AFFINITY DIAGRAMAFFINITY DIAGRAMExampleExample

How to implement a process of continual How to implement a process of continual improvement throughout the improvement throughout the organisation? Which causes of waiting organisation? Which causes of waiting time in the hospital should we be working time in the hospital should we be working on?on?

http://www.tin.nhs.uk/index.asp?pgid=1129<

Page 8: New 7 Management Tools

AFFINITY DIAGRAMAFFINITY DIAGRAM

ExampleExample

Page 9: New 7 Management Tools

AFFINITY DIAGRAMAFFINITY DIAGRAM

ExampleExample

Page 10: New 7 Management Tools

AFFINITY DIAGRAMAFFINITY DIAGRAM

ExampleExample

Page 11: New 7 Management Tools

INTER RELATIONSHIP INTER RELATIONSHIP DIAGRAPHDIAGRAPH

DefinitionDefinition

This tool displays all the interrelated This tool displays all the interrelated cause-and-effect relationships and cause-and-effect relationships and factors involved in a complex factors involved in a complex problem and describes desired problem and describes desired outcomes. The process of creating outcomes. The process of creating an interrelationship diagraph helps a an interrelationship diagraph helps a group analyze the natural links group analyze the natural links between different aspects of a between different aspects of a complex situation. complex situation.

`̀http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

Page 12: New 7 Management Tools

INTER RELATIONSHIP INTER RELATIONSHIP DIAGRAPHDIAGRAPH

ProcessProcess

Agree on the issue or question. Agree on the issue or question. Add a symbol to the diagram for every element involved in the Add a symbol to the diagram for every element involved in the issue. issue. Compare each element to all others. Use an "influence" arrow to Compare each element to all others. Use an "influence" arrow to connect related elements. connect related elements. The arrows should be drawn from the element that influences to The arrows should be drawn from the element that influences to the one influenced. the one influenced. If two elements influence each other, the arrow should be drawn to If two elements influence each other, the arrow should be drawn to reflect the stronger influence. reflect the stronger influence. Count the arrows. Count the arrows. The elements with the most outgoing arrows will be root causes or The elements with the most outgoing arrows will be root causes or drivers. drivers. The ones with the most incoming arrows will be key outcomes or The ones with the most incoming arrows will be key outcomes or results. results.

`̀ http://www.skymark.com/resources/tools/relations_diagram.asp

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INTER RELATIONSHIP INTER RELATIONSHIP DIAGRAPHDIAGRAPH

ExampleExample

The quality issue is the potential causes or factors The quality issue is the potential causes or factors contributing to late deliveries.contributing to late deliveries.

http://www4.asq.org/blogs/statistics/2008/07/interrelationship_digraph_exam.html

Page 14: New 7 Management Tools

INTER RELATIONSHIP INTER RELATIONSHIP DIAGRAPHDIAGRAPH

ExampleExample

http://www4.asq.org/blogs/statistics/2008/07/interrelationship_digraph_exam.html

Page 15: New 7 Management Tools

INTER RELATIONSHIP INTER RELATIONSHIP DIAGRAPHDIAGRAPH

ExampleExample

The inference is that Potential causes for late delivery are:The inference is that Potential causes for late delivery are:

‘‘Poor scheduling practices’ (6 outgoing arrows), Poor scheduling practices’ (6 outgoing arrows),

‘‘Late order from customer’ (5 outgoing arrows), and Late order from customer’ (5 outgoing arrows), and

‘‘Equipment breakdown (3 outgoing arrows). Equipment breakdown (3 outgoing arrows).

http://www4.asq.org/blogs/statistics/2008/07/interrelationship_digraph_exam.html

Page 16: New 7 Management Tools

TREE DIAGRAMTREE DIAGRAMDefinitionDefinition

This tool is used to break down broad categories into This tool is used to break down broad categories into finer and finer levels of detail. It can map levels of finer and finer levels of detail. It can map levels of details of tasks that are required to accomplish a details of tasks that are required to accomplish a goal or task. It can be used to break down broad goal or task. It can be used to break down broad general subjects into finer and finer levels of detail. general subjects into finer and finer levels of detail. Developing the tree diagram helps one move their Developing the tree diagram helps one move their thinking from generalities to specifics.thinking from generalities to specifics.

http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

Page 17: New 7 Management Tools

TREE DIAGRAMTREE DIAGRAMDefinitionDefinition

This tool is used to break down broad This tool is used to break down broad categories into finer and finer levels of categories into finer and finer levels of detail. It can map levels of details of detail. It can map levels of details of tasks that are required to accomplish tasks that are required to accomplish a goal or task. It can be used to break a goal or task. It can be used to break down broad general subjects into down broad general subjects into finer and finer levels of detail. finer and finer levels of detail. Developing the tree diagram helps Developing the tree diagram helps one move their thinking from one move their thinking from generalities to specifics.generalities to specifics.

http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

Page 18: New 7 Management Tools

TREE DIAGRAMTREE DIAGRAMProcessProcess

Develop a statement of the goal Develop a statement of the goal Ask a question that will lead you to the next level of detail. Ask a question that will lead you to the next level of detail. Brainstorm all possible answers. Write each idea in a line below. Brainstorm all possible answers. Write each idea in a line below. Show links between the tiers with arrows. Show links between the tiers with arrows. Do a “necessary and sufficient” check. Are all the items at this Do a “necessary and sufficient” check. Are all the items at this level necessary for the one on the level above? level necessary for the one on the level above? Each of the new idea statements now becomes the subject: a Each of the new idea statements now becomes the subject: a goal, objective or problem statement. goal, objective or problem statement. Continue to turn each new idea into a subject statement and ask Continue to turn each new idea into a subject statement and ask the question, till you reach a root causethe question, till you reach a root causeDo a “necessary and sufficient” check of the entire diagram. Are Do a “necessary and sufficient” check of the entire diagram. Are all the items necessary for the objective? all the items necessary for the objective?

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/tree-diagram.html

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TREE DIAGRAMTREE DIAGRAMExampleExample

The Pearl River, NY School District, a 2001 recipient of the Malcolm The Pearl River, NY School District, a 2001 recipient of the Malcolm Baldrige National Quality Award, uses a tree diagram to Baldrige National Quality Award, uses a tree diagram to communicate how district-wide goals are translated into sub-communicate how district-wide goals are translated into sub-goals and individual projects. They call this connected approach goals and individual projects. They call this connected approach “The Golden Thread.” “The Golden Thread.”

The district has three fundamental goals. The first, to improve The district has three fundamental goals. The first, to improve academic performance, is partly shown in the figure below. academic performance, is partly shown in the figure below. District leaders have identified two strategic objectives that, District leaders have identified two strategic objectives that, when accomplished, will lead to improved academic when accomplished, will lead to improved academic performance: academic achievement and college admissions.performance: academic achievement and college admissions.

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/tree-diagram.html

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TREE DIAGRAMTREE DIAGRAMExampleExample

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/tree-diagram.html

Page 21: New 7 Management Tools

TREE DIAGRAMTREE DIAGRAMExampleExample

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/tree-diagram.html

Lag indicators are long-term and results-oriented. The lag indicator for academic achievement is Regents’ diploma rate: the percent of

students receiving a state diploma by passing eight Regents’ exams.

Lead indicators are short-term and process-oriented. Starting in 2000, the lead indicator for the Regents’ diploma rate was performance on

new fourth and eighth grade state tests.

Finally, annual projects are defined, based on cause-and-effect analysis, that will improve performance. In 2000–2001, four projects

were accomplished to improve academic achievement.

Page 22: New 7 Management Tools

MATRIX DIAGRAMMATRIX DIAGRAMDefinitionDefinition

This tool shows the relationship between This tool shows the relationship between items. At each intersection a relationship items. At each intersection a relationship is either absent or present. It then gives is either absent or present. It then gives information about the relationship, such information about the relationship, such as its strength, the roles played by as its strength, the roles played by various individuals or measurements. Six various individuals or measurements. Six differently shaped matrices are possible: differently shaped matrices are possible: L, T, Y, X, C, R and roof-shaped, L, T, Y, X, C, R and roof-shaped, depending on how many groups must be depending on how many groups must be compared.compared.

http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

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ExampleExample

http://www.qualityamerica.com/QAProducts/images/ProjectSelection.jpg

MATRIX DIAGRAMMATRIX DIAGRAM

Page 24: New 7 Management Tools

ExampleExample

A personnel department wanted to improve social activity within the company in order to increase loyalty levels. A theory was put forwards that soft-skills training contributed significantly towards this in-house socializing. The personnel manager consequently

decided to use a Matrix Diagram to investigate this. The steps taken were:

Objective: Investigate effect of soft-skills training on social activity.

Matrix: T-matrix, with people on main stem, in-house training courses to left, attendance of social clubs to right, plus an extra column for years of service.

Comparison: In-house training - tick for attendance within last three years; social clubs - three bands corresponding to under 30%, 30% to 70% and over 70%

attendance in the same period.

http://syque.com/quality_tools/toolbook/Matrix/example.htm

MATRIX DIAGRAMMATRIX DIAGRAM

Page 25: New 7 Management Tools

ExampleExample

http://syque.com/quality_tools/toolbook/Matrix/example.htm

MATRIX DIAGRAMMATRIX DIAGRAM

Page 26: New 7 Management Tools

ExampleExample

http://syque.com/quality_tools/toolbook/Matrix/example.htm

The resultant matrix, showed that people with higher levels of social training also tended to be more committed members of social clubs. It was also noticed that there seemed to be a particular increase in commitment after going on the team-building course. The length of service showed no particular pattern.

As a result, the training was expanded, and people were given more encouragement to attend (particularly the team-building course). This resulted in a steady increase in social activity and a reduction in attrition rates.

MATRIX DIAGRAMMATRIX DIAGRAM

Page 27: New 7 Management Tools

DefinitionDefinition

PRIORITISATION MATRIXPRIORITISATION MATRIX

This tool is used to prioritize items and describe them in terms of weighted criteria. It uses a combination of tree and matrix diagramming techniques to do a pair-wise evaluation of items and to narrow down options to the most desired or most effective.

http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

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ExampleExample

PRIORITISATION MATRIXPRIORITISATION MATRIX

Problem

To identify the most important factors effecting motivation in a team

Page 29: New 7 Management Tools

ExampleExample

PRIORITISATION MATRIXPRIORITISATION MATRIX

Page 30: New 7 Management Tools

ExampleExample

PRIORITISATION MATRIXPRIORITISATION MATRIX

Pay and work overload, as the highest scoring motivational problems, were selected for carrying forward for further investigation. As a result of consequent work in the project, the pay structure for certain grades was revised and training on job scheduling was introduced. In the following year, the survey improved in these areas by 2 and 3 points, respectively.

Page 31: New 7 Management Tools

DefinitionDefinition

PDPCPDPC

A useful way of planning is to break down tasks into a hierarchy, using a Tree Diagram. The PDPC extends the tree diagram a couple of levels to identify risks and countermeasures for the bottom level tasks. Different shaped boxes are used to highlight risks and identify possible countermeasures (often shown as 'clouds' to indicate their uncertain nature). The PDPC is similar to the Failure Modes and Effects Analysis (FMEA) in that both identify risks, consequences of failure, and contingency actions; the FMEA also rates relative risk levels for each potential failure point.

http://en.wikipedia.org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

Page 32: New 7 Management Tools

ProcessProcess

PDPCPDPC

From the bottom level of some activity box, the PDPC adds levels for:

•identifying what can go wrong (failure mode or risks) •consequences of that failure (effect or consequence) •possible countermeasures (risk mitigation action plan)

http://en.wikipedia.org/wiki/Process_Decision_Program_Chart

Page 33: New 7 Management Tools

ExampleExample

PDPCPDPC

A dress production team at a clothes manufacturer was improving the cutting-out process in order to minimize material wastage. They decided to use PDPC on the work breakdown structure to identify potential problems and ways of avoiding them.

As the most expensive element is the material itself, they defined a significant risk as, 'Anything that might cause the cut cloth to be ruined', and viable countermeasures as, 'Anything that will reduce the risk, and which costs less than 100 pieces of cloth' .

http://syque.com/quality_tools/toolbook/PDPC/example.htm

Page 34: New 7 Management Tools

ExampleExample

PDPCPDPC

http://syque.com/quality_tools/toolbook/PDPC/example.htm

Page 35: New 7 Management Tools

ExampleExample

PDPCPDPC

http://syque.com/quality_tools/toolbook/PDPC/example.htm

As a result of this, the cutting was tested on cheaper material, resulting in the material clamp being redesigned to prevent drag, a start notch provided for the cutter and the general area being inspected for sharp corners to minimize snag problems. The cutting operator was involved in the PDPC process and the subsequent tests, resulting in her fully understanding the process. The final cutting process thereafter ran very smoothly with very little error.

Page 36: New 7 Management Tools

DefinitionDefinition

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

http://syque.com/quality_tools/toolbook/PDPC/example.htm

This tool is used to plan the appropriate sequence or schedule for a set of tasks and related

subtasks. It is used when subtasks must occur in parallel. The diagram enables one to determine

the critical path (longest sequence of tasks). (See also PERT diagram.)

Two Types

•Arrow on Node

•Arrow on Arrow

Page 37: New 7 Management Tools

ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

Drawing the Network List all the necessary tasks in the project or process. One convenient method is to write each task on the top half of a card or sticky note. Across the middle of the card, draw a horizontal arrow pointing right.

Determine the correct sequence of the tasks. Do this by asking three questions for each task:

Which tasks must happen before this one can begin? Which tasks can be done at the same time as this one? Which tasks should happen immediately after this one?

It can be useful to create a table with four columns —prior tasks, this task, simultaneous tasks, following tasks.

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/arrow-diagram.html

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ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/arrow-diagram.html

Diagram the network of tasks. If you are using notes or cards, arrange them in sequence on a large piece of paper. Time should flow from left to right and concurrent tasks should be vertically aligned. Leave space between the cards.

Between each two tasks, draw circles for “events.” An event marks the beginning or end of a task. Thus, events are nodes that separate tasks.

Page 39: New 7 Management Tools

ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

http://www.asq.org/learn-about-quality/new-management-planning-tools/overview/arrow-diagram.html

Look for three common problem situations and redraw them using “dummies” or extra events. A dummy is an arrow drawn with dotted lines used to separate tasks that would otherwise start and stop with the same events or to show logical sequence. Dummies are not real tasks.

Page 40: New 7 Management Tools

ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

In the In the activity on arrowactivity on arrow (AOA) diagram each (AOA) diagram each activity is represented by an arrow connecting two activity is represented by an arrow connecting two circles (circles (nodesnodes))The nodes represent transitions between activities – The nodes represent transitions between activities – referred to as referred to as eventseventsThe duration of an activity is written by the arrow The duration of an activity is written by the arrow representing it.representing it.Example shows activity (A), the duration of which is Example shows activity (A), the duration of which is four days, between events 1 and 2.four days, between events 1 and 2.

PM Lecture/Network Analysis/CPM Slide 4/ Paul Forrester/University of Birmingham

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Process AOAProcess AOA

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

Time is denoted on AOA diagrams in the top and bottom right-hand quadrants Time is denoted on AOA diagrams in the top and bottom right-hand quadrants of the nodes, thus:of the nodes, thus:

EventNumber

Earliest Start (ES) Time for any activity leaving event 3

Latest Finish (LS) Time for any activity entering event 3 (without putting the project as a whole behind schedule)

PM Lecture/Network Analysis/CPM Slide 5/ Paul Forrester/University of Birmingham

Page 42: New 7 Management Tools

ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

In the In the activity on node activity on node (AON) diagram, each (AON) diagram, each activity is represented by a rectangular box – the activity is represented by a rectangular box – the arrows merely indicate precedence.arrows merely indicate precedence.AON networks do not need dummies to maintain AON networks do not need dummies to maintain logic of precedence.logic of precedence.More information is normally included on the More information is normally included on the AON diagram.AON diagram.Most computer packages for project planning Most computer packages for project planning and control tend to use AON notation.and control tend to use AON notation.

PM Lecture/Network Analysis/CPM Slide 16/ Paul Forrester/University of Birmingham

Page 43: New 7 Management Tools

Process AONProcess AON

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

AON notations do vary, but below is the most commonly usedAON notations do vary, but below is the most commonly used

EarliestStart time Duration

Earliestfinish time

LatestStart time

Total Float Latestfinish time

Activity Number and Activity description

ES d EF

LS TF LF

Activity

Shorthand notationPM Lecture/Network Analysis/CPM Slide 17/ Paul Forrester/University of Birmingham

Page 44: New 7 Management Tools

ProcessProcess

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

First do a First do a forward pass forward pass to note down the to note down the duration and the Earliest finish and start timesduration and the Earliest finish and start times

Then a Then a backward passbackward pass is done to fill in the is done to fill in the Latest finish, start and total float timesLatest finish, start and total float times

PM Lecture/Network Analysis/CPM Slide 16/ Paul Forrester/University of Birmingham

Page 45: New 7 Management Tools

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

ExampleExample

PM Lecture/Network Analysis/CPM Slide 18/ Paul Forrester/University of Birmingham

ActivityActivity Time (days)Time (days) Immediate Immediate PredecessorsPredecessors

AA 22 --

BB 77 --

CC 44 AA

DD 33 AA

EE 22 B,CB,C

FF 33 D,ED,E

Page 46: New 7 Management Tools

Process Process forward passforward pass

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

PM Lecture/Network Analysis/CPM Slide 19/ Paul Forrester/University of Birmingham

0 2 2

LS TF LF

A

0 7 7

LS TF LF

B

2 4 6

LS TF LF

C

2 3 5

LS TF LF

D

7 2 9

LS TF LF

E9 3 12

LS TF LF

F

Page 47: New 7 Management Tools

Process Process backward passbackward pass

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

PM Lecture/Network Analysis/CPM Slide 20/ Paul Forrester/University of Birmingham

0 2 2

1 TF 3

A

0 7 7

0 TF 7

B

2 4 6

3 TF 7

C

2 3 5

6 TF 9

D

7 2 9

7 TF 9

E9 3 12

9 TF 12

F

Page 48: New 7 Management Tools

Process Process float time and critical pathfloat time and critical path

ACTIVITY NETWORK DIAGRAMACTIVITY NETWORK DIAGRAM

PM Lecture/Network Analysis/CPM Slide 21/ Paul Forrester/University of Birmingham

0 2 2

1 1 3

A

0 7 7

0 0 7

B

2 4 6

3 1 7

C

2 3 5

6 4 9

D

7 2 9

7 0 9

E9 3 12

9 0 12

F

Page 49: New 7 Management Tools

Any tool is a weapon if you hold it right.

Ani DiFranco Grammy award winner, Prolific artist and feminist

Page 50: New 7 Management Tools

Thank youThank you