NEW 7 MANAGEMENT TOOLS AGENDA WHY THE

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NEW 7 MANAGEMENT TOOLS

AGENDA WHY THE NEW SET OF TOOLS LIST OF TOOLS INDIVIDUAL TOOLS EXAMPLES

WHY THE NEW SET OF TOOLS To structure the brainstorming process Simplify Remove fear To help create a comfort fit (minimal dependence on statistics) Improve penetration Increase application

LIST OF TOOLS Affinity Diagram Interrelationship diagraph Tree Diagram Matrix Diagrams Matrix Analysis PDPC, process decision program charts Arrow diagrams

AFFINITY DIAGRAM Definition An Affinity Diagram is a special type of brainstorming process that is used for organising large groups of information into meaningful categories. It helps us to clarify and make sense of a large or complex problem http: //www. tin. nhs. uk/index. asp? pgid=1129

AFFINITY DIAGRAM Process Record each idea on cards or notes Look for ideas that seem to be related Sort cards into groups until all cards have been used. http: //en. wikipedia. org/wiki/Affinity_diagram

AFFINITY DIAGRAM Example How to implement a process of continual improvement throughout the organisation? Which causes of waiting time in the hospital should we be working on? http: //www. tin. nhs. uk/index. asp? pgid=1129<

AFFINITY DIAGRAM Example

INTER RELATIONSHIP DIAGRAPH Definition This tool displays all the interrelated cause-and-effect relationships and factors involved in a complex problem and describes desired outcomes. The process of creating an interrelationship diagraph helps a group analyze the natural links between different aspects of a complex situation. ` http: //en. wikipedia. org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

INTER RELATIONSHIP DIAGRAPH Process Agree on the issue or question. Add a symbol to the diagram for every element involved in the issue. Compare each element to all others. Use an "influence" arrow to connect related elements. The arrows should be drawn from the element that influences to the one influenced. If two elements influence each other, the arrow should be drawn to reflect the stronger influence. Count the arrows. The elements with the most outgoing arrows will be root causes or drivers. The ones with the most incoming arrows will be key outcomes or results. ` http: //www. skymark. com/resources/tools/relations_diagram. asp

INTER RELATIONSHIP DIAGRAPH Example The quality issue is the potential causes or factors contributing to late deliveries. http: //www 4. asq. org/blogs/statistics/2008/07/interrelationship_digraph_exam. html

INTER RELATIONSHIP DIAGRAPH Example http: //www 4. asq. org/blogs/statistics/2008/07/interrelationship_digraph_exam. html

INTER RELATIONSHIP DIAGRAPH Example The inference is that Potential causes for late delivery are: ‘Poor scheduling practices’ (6 outgoing arrows), ‘Late order from customer’ (5 outgoing arrows), and ‘Equipment breakdown (3 outgoing arrows). http: //www 4. asq. org/blogs/statistics/2008/07/interrelationship_digraph_exam. html

TREE DIAGRAM Definition This tool is used to break down broad categories into finer and finer levels of detail. It can map levels of details of tasks that are required to accomplish a goal or task. It can be used to break down broad general subjects into finer and finer levels of detail. Developing the tree diagram helps one move their thinking from generalities to specifics. http: //en. wikipedia. org/wiki/Seven_Management_and_Planning_Tools#Interrelationship_Diagraph

TREE DIAGRAM Process Develop a statement of the goal Ask a question that will lead you to the next level of detail. Brainstorm all possible answers. Write each idea in a line below. Show links between the tiers with arrows. Do a “necessary and sufficient” check. Are all the items at this level necessary for the on the level above? Each of the new idea statements now becomes the subject: a goal, objective or problem statement. Continue to turn each new idea into a subject statement and ask the question, till you reach a root cause Do a “necessary and sufficient” check of the entire diagram. Are all the items necessary for the objective? http: //www. asq. org/learn-about-quality/new-management-planning-tools/overview/tree-diagram. html

TREE DIAGRAM Example The Pearl River, NY School District, a 2001 recipient of the Malcolm Baldrige National Quality Award, uses a tree diagram to communicate how district-wide goals are translated into subgoals and individual projects. They call this connected approach “The Golden Thread. ” The district has three fundamental goals. The first, to improve academic performance, is partly shown in the figure below. District leaders have identified two strategic objectives that, when accomplished, will lead to improved academic performance: academic achievement and college admissions. http: //www. asq. org/learn-about-quality/new-management-planning-tools/overview/tree-diagram. html

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

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

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

MATRIX DIAGRAM Example http: //www. qualityamerica. com/QAProducts/images/Project. Selection. jpg

MATRIX DIAGRAM Example 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 DIAGRAM Example http: //syque. com/quality_tools/toolbook/Matrix/example. htm

MATRIX DIAGRAM Example 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. http: //syque. com/quality_tools/toolbook/Matrix/example. htm

PRIORITISATION MATRIX Definition 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

PRIORITISATION MATRIX Example Problem To identify the most important factors effecting motivation in a team

PRIORITISATION MATRIX Example

PRIORITISATION MATRIX Example 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.

PDPC Definition 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

PDPC Process 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

PDPC Example 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

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

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

ACTIVITY NETWORK DIAGRAM Definition 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 http: //syque. com/quality_tools/toolbook/PDPC/example. htm

ACTIVITY NETWORK DIAGRAM Process 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

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

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

ACTIVITY NETWORK DIAGRAM Process In the activity on arrow (AOA) diagram each activity is represented by an arrow connecting two circles (nodes) The nodes represent transitions between activities – referred to as events The duration of an activity is written by the arrow representing it. Example shows activity (A), the duration of which is four days, between events 1 and 2. PM Lecture/Network Analysis/CPM Slide 4/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Process AOA Time is denoted on AOA diagrams in the top and bottom right-hand quadrants of the nodes, thus: Event Number 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

ACTIVITY NETWORK DIAGRAM Process In the activity on node (AON) diagram, each activity is represented by a rectangular box – the arrows merely indicate precedence. AON networks do not need dummies to maintain logic of precedence. More information is normally included on the AON diagram. Most computer packages for project planning and control tend to use AON notation. PM Lecture/Network Analysis/CPM Slide 16/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Process AON notations do vary, but below is the most commonly used Earliest Start time Duration Earliest finish time Activity Number and Activity description ES Latest Start time Total Float Latest finish time d EF Activity LS TF LF PM Lecture/Network Analysis/CPM Slide 17/ Paul Forrester/University of Birmingham Shorthand notation

ACTIVITY NETWORK DIAGRAM Process First do a forward pass to note down the duration and the Earliest finish and start times Then a backward pass is done to fill in the Latest finish, start and total float times PM Lecture/Network Analysis/CPM Slide 16/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Example Immediate Predecessors - Activity Time (days) A B 2 7 C 4 A D 3 A E 2 B, C F 3 D, E - PM Lecture/Network Analysis/CPM Slide 18/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Process forward pass 0 7 7 B LS 0 2 2 TF LF 2 4 6 A LS TF 7 LS TF LS LF 2 9 E C LF 2 TF LF 9 12 F LS 3 3 TF LF 5 D LS TF LF PM Lecture/Network Analysis/CPM Slide 19/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Process backward pass 0 7 7 B 0 0 2 2 TF 7 2 4 6 A 1 TF 7 3 TF 7 7 2 9 E C 3 2 TF 9 9 12 F 9 3 3 TF 12 5 D 6 TF 9 PM Lecture/Network Analysis/CPM Slide 20/ Paul Forrester/University of Birmingham

ACTIVITY NETWORK DIAGRAM Process float time and critical path 0 7 7 B 0 0 2 2 0 7 2 4 6 A 1 1 7 3 1 7 7 2 9 E C 3 2 0 9 9 12 F 9 3 3 0 12 5 D 6 4 9 PM Lecture/Network Analysis/CPM Slide 21/ Paul Forrester/University of Birmingham

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