A Training Presentation On The N7

The New Seven
Q.C. Tools
A Training Presentation on the N7
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 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
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 process
 Prioritizes 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 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 clearly articulated omitted is identified
Cooperation is Countermeasures
Things go well
obtained are on target
Problem is in solvable form

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

Situation and Generating Solution Strategies
 Gathers large amounts of 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 the problem.
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 everyone’s 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
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 thoroughly
 Write 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 statement
 Continue to 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

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

Relationships with Complex Interrelated Causes
 Resolves tangled issues by 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 people’s
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 causes
Tertiary Tertiary
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
Relations Diagrams
Slide 4 0f 7
Constructing a Relations Diagram

 Express the problem in form of “Why
isn’t 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 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
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 Tertiary
Cause Secondary Cause
Primary Cause Cause
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
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 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
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 strategy)
 Take each primary mean, write ob-
jective for achieving it (secondary means)
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 4th means
3rd means 4th means

Secondary means
3rd means 4th means
Primary means 4th means
3rd means
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
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 clearer.
Matrix Diagrams
Slide 3 0f 7
Advantages of Matrix Diagrams (cont.)
 5 types: L-shaped, T-shaped, Y-shaped, X-

shaped, and C-shaped
O O =1 O =4 Principa l
O =2 O X =5 O Subsidia ry
=3 X =6
Eva lua tion Re sponsibilitie s
QC circle supporter
Site QC circle
Section/Plant
Section/Plant
Practicability
Re ma rks
Manager
Member
Efficacy
Leader
Rank
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
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 O =1 O =4 Principa l
O =2 O X =5 O Subsidiary
=3 X =6
Evalua tion Responsibilities
QC circle supporter
Site QC circle
Section/Plant
Section/Plant
Practicability
Remarks
Manager
Member
Efficacy
Leader
Rank
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
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) and CPM (Critical Path Method)
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
 Improves communication among team
Arrow Diagrams
Slide 3 0f 7
Advantages of Arrow Diagrams (cont.)
 Promotes understanding and agreement

among group
Strategy Constraints
4 12
1 2 3 5 9 10 13
Activity
6 8 11
7
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
4 12
1 2 3 5 9 10 13
Activity
6 8 11
7
Process Decisions Program
Charts
Slide 1 0f 7
For Producing the Desired Result from Many

Possible Outcomes
 Used 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
overcome problems
Charts
Slide 2 0f 7
Advantages of Process Decisions Program

Charts (PDPC’s)
 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 PDPC’s (cont.)

 Fosters cooperation and communication in
group
 Easily modified and easily understood
Start
NO
NO NO
NO
YES YES NO NO
YES
NO
GOAL
Charts
Slide 4 0f 7
Constructing a PDPC
 Select a highly effective, but difficult
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
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
Slide 7 0f 7
Completing a PDPC Start
NO
NO NO
NO
YES YES NO NO
YES
NO
GOAL
Matrix Data Analysis
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 Analysis

 Can be used in 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 decision
 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)
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 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
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
Review
 Affinity Diagrams
 Relations Diagrams
 Tree Diagrams
 Matrix Diagrams
 Arrow Diagrams
 Process Decision Program Charts
 Matrix Data Analysis

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
required action is unknown
strategies and plan must be developed
Slide 3 0f 5
4 Specific Keys (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)
Slide 4 0f 5

 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
Slide 5 0f 5

 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
- Discover the cause and take appropriate action
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 (not categorized)
- Arrange cards to complete diagram
(some hints have been provided)
Slide 2 0f 5
Primary
Cause
Primary Use N7 Primary

Cause Skillfully Cause
Primary
Cause
Slide 3 0f 5
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
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
Slide 4 0f 5
Primary
T Cause
Use N7
Primary
Cause Skillfully B
Primary
R Cause L
Y I
Slide 5 0f 5
Solution for ”Abilities Required for Applying New Seven QC Tools”
F S U
M T E N
Use N7
C W J Skillfully B G
H R P X L
Y A Z V I Q
O K
D
Summary
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
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
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

 Matrix Data Analysis

 Committee of J.U.S.E. - 1972

 Developed to organize verbal data

Numerical Data Verbal Data

The Basic Seven Tools The Seven New Tools

•Analytical approach •Generate Ideas

Enhanced Keys to Organizational Reform

Five Objectives of Organizational Reform

Unstructured Problem [must be put into solvable form]

Problem becomes Thoughts are Plans are Problem becomes

People understand Problem can be Nothing is Nub of problem

Problem is in solvable form

For Pinpointing the Problem in a Chaotic

Advantages of Affinity Diagrams

Advantages of Affinity Diagrams (cont.)

 Fosters team spirit

Constructing an Affinity Diagram

Constructing an Affinity Diagram

 Move data cards into groups of similar

Constructing an Affinity Diagram

Lay the groups outs, keeping the affinity

Completing an Affinity Diagram

Data Card Data Card

For Finding Solutions Strategies by Clarifying

Advantages of Relations Diagrams

Advantages of Relations Diagrams (cont.)

 Makes the problem recognizable by

Primary Cause Tertiary

Primary Cause Primary Cause

Constructing a Relations Diagram

Constructing a Relations Diagram

 Move cards into similar groups

Constructing a Relations Diagram

 Review whole diagram looking for

Next, complete the diagram

Completing a Relations Diagram

Primary Cause Tertiary

Primary Cause Primary Cause

For Systematically Pursuing the Best Strategies

Advantages of Tree Diagrams

Constructing a Tree Diagram

Constructing an Tree Diagram

 Continue to expand to the fourth level

Completing a Tree Diagram 4th means

3rd means 4th means

3rd means 4th means

Secondary means 3rd means 4th means

For Clarifying Problems by “Thinking

Advantages of Matrix Diagrams

Advantages of Matrix Diagrams (cont.)

 5 types: L-shaped, T-shaped, Y-shaped, X-

4th level means

Constructing a Matrix Diagram

 Write final-level means from Tree

Constructing a Matrix Diagram (cont.)

Constructing a Matrix Diagram (cont.)

Completing a Matrix Diagram

For Working Out Optimal Schedules and

Advantages of Arrow Diagrams

Advantages of Arrow Diagrams (cont.)

 Promotes understanding and agreement

Constructing an Arrow Diagram