A Training Presentation On The N7

The New Seven
Q.C. Tools
A Training Presentation on the N7
By Christopher Diaz
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

collecting numerical data
Define problem before

collecting numerical data
The Basic Seven Tools

Analytical approach
The Seven New Tools

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
obvious to all
Thoughts are
easily organized
Plans are
easily laid
Problem becomes
obvious to all
People understand
problem
Problem can be
clearly articulated
Nothing is
omitted
Nub of problem
is identified
Cooperation is
obtained
Things go well
Countermeasures
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 everyones 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
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
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
Data Card
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

peoples 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
Cause
Primary Cause
Why doesnt
X happen?
Primary Cause
Tertiary
Cause
Secondary
Cause
Tertiary
Cause
Tertiary
Cause
Primary Cause
Secondary
Cause
4th level
Cause
Secondary
Cause
Secondary
Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
6th level
Cause
4th level
Cause
5th level
Cause
Relations Diagrams
Slide 4 0f 7
Constructing a Relations Diagram

Express the problem in form of

Why isnt 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
Cause
Primary Cause
Why doesnt
X happen?
Primary Cause
Tertiary
Cause
Secondary
Cause
Tertiary
Cause
Tertiary
Cause
Primary Cause
Secondary
Cause
4th level
Cause
Secondary
Cause
Secondary
Cause
Primary Cause
Tertiary
Cause
Secondary
Cause
6th level
Cause
4th level
Cause
5th level
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
Secondary means
Primary means
To
Accomplish
Constraints
Secondary means
3rd means
3rd means
3rd means
3rd means
4th means
4th means
4th means
4th means
4th means
4th means
4th means
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 objective 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

Secondary means
Primary means
To
Accomplish
3rd means
4th means
3rd means
4th means
3rd means
Secondary means
4th means
3rd means
4th means
4th means
4th means
4th means
Secondary means
4th means
3rd means
4th means
4th means
Primary means
Constraints
3rd means
Secondary means
3rd means
4th means
3rd means
4th means
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
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
=4
=5
=6
Principa l
Subsidia ry
Hold 4 times/month
At every meeting
S e c t io n /P la n t
M anager
S it e Q C c ir c le
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
O
X
X
1
4
M em ber
Responsibilitie s
Leader
Eva lua tion
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
Rank
=1
=2
=3
P r a c t ic a b ilit y
E f f ic a c y
O
O
Q C c ir c le s u p p o r t e r
Advantages of Matrix Diagrams (cont.)

5 types: L-shaped, T-shaped, Yshaped, X-shaped, and C-shaped
Re ma rks
O
O
O
At least 3 times/year/person
O
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
Label group of columns as
(cont.)
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
=1
=2
=3
Subsidia ry
Responsibilities
Hold 4 times/month
At every meeting
1
4
M em ber
Leader
M anager
S it e Q C c ir c le
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
means
diagram
Rank
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
level
Tree
Principal
P r a c t ic a b ilit y
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
4th
from
=4
=5
=6
E f f ic a c y
Eva luation
O
X
X
Q C c ir c le s u p p o r t e r
O
O
O
O
O
At least 3 times/year/person
O
O
O
O
Re ma rks
O
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
1
12
5
10
11
Activity
13
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
Completing an Arrow Diagram
Strategy
Constraints
Slide 7 0f 7
12
10
11
Activity
7
13
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

(PDPCs)
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 PDPCs (cont.)

Fosters cooperation and
communication in group
Easily modified and easily understood
Start
NO
NO
NO
YES
YES
NO
YES
NO
GOAL
NO
NO

Charts
Slide 4 0f 7
Constructing a PDPC
Select a highly effective, but difficult

strategy from the Tree diagram
Decide on a goal
Identify existing situation
(most desirable outcome)

(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
NO
NO
YES
Start
NO
YES
NO
NO
NO
YES
NO
GOAL

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

Completing a Prioritization Grid
Criteria
Slide 6 0f 6
Customer Acceptance
(most important)
Strength
Importance Option
Reliability (least important) Sum Score Ranking
Cost
Design A
Percentage weight
Rank
Importance score
.40
4
1.6
.30
3
.90
.20
3
.60
.10
1
.10
3.2
1 (tie)
Design B
Percentage weight
Rank
Importance score
.30
3
.90
.40
4
1.6
.10
1
.10
.20
2
.40
3.0
Design C
Percentage weight
Rank
Importance score
.25
1
.25
.25
2
.50
.25
4
1
.25
3
.75
2.5
Design D
Percentage weight
Rank
Importance score
0.3
3
.90
.10
1
.10
.20
3
.60
.40
4
1.6
3.2
1 (tie)
Sum of weights
Average weight
Criterion Ranking
1.25
.31
1
1.05
.26
2
.75
.19
4
.95
.24
3
Options
Review
Affinity Diagrams
Relations Diagrams
Tree Diagrams
Matrix Diagrams
Arrow Diagrams
Process Decision Program Charts
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

4 Specific Keys
Slide 3 0f 5
(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)

4 Specific Keys
Slide 4 0f 5
(cont.)
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

4 Specific Keys
Slide 5 0f 5
(cont.)
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
Cause
Use N7
Skillfully
Primary
Cause
Primary
Cause
Slide 3 0f 5

Cause Statements (hints are in yellow)
A
B
C
D
E
F
G
H
I
J
K
L
M
Interpret data clearly

Select appropriate tool
Think systematically
Give opinions
Know what the problem is
Extract necessary information
Collect reliable verbal data
Think multidimensionally
Obtain facts
Interpret analytical results
Generate ideas
Know that distorted data is useless
Grasp overall pictured
N
O
P
Q
R
S
T
U
V
W
X
Y
Z
Understand seriousness of problem

Think flexibly from various standpoints
Obtain appropriate verbal data
Expose core of problem
Communicate well
Accurately understand real problem
Have excellent intuition
See to heart of problem
Select appropriate type of verbal data
Think in terms of word-based diagram
Express genuine thoughts
Hear and respect other's opinions
Generate highly accurate verbal data
Slide 4 0f 5
F
T
Primary
Cause
Primary
Cause
Use N7
Skillfully
Primary
Cause
B
L
I

Solution for Abilities Required for Applying New Seven QC Tools
Use N7
Skillfully
M
C
Y
O
Slide 5 0f 5
Summary
Benefits of New Seven Q.C. Tools

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

12345-
Express verbal data diagrammatically

Make information visible
Organize information intelligibly
Clarify overall picture and fine details
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

What are the

New Seven Q.C. Tools

New Seven Q.C. Tools

Committee of J.U.S.E. - 1972

Aim was to develop more QC

Work in conjunction with original

New set of methods (N7) - 1977

New Seven Q.C. Tools

Developed to organize verbal data

Basic 7 tools effective for data

Used together increases TQM

What are the

Basic Seven Q.C. Tools?

Cause and Effect Diagrams

Relation Between New Seven

Define problem after

Define problem before

The Basic Seven Tools

The Seven New Tools

New Seven Q.C. Tools

New Seven Q.C. Tools

Enhanced Keys to Organizational Reform

Assess situations from various angles

Clarify the desired situation

New Seven Q.C. Tools

Five Objectives of Organizational Reform

Stresses the importance of the process

Encourages everyone to think

New Seven Q.C. Tools

Unstructured Problem [must be put into solvable form]

Problem is in solvable form

New Seven Q.C. Tools

For Pinpointing the Problem in a Chaotic

Gathers large amounts of intertwined

Organizes the data into groups based

Makes it feasible for further analysis

New Seven Q.C. Tools

Advantages of Affinity Diagrams

Permits the problem to be pinned

Ensures everyone clearly recognizes

Incorporates opinions of entire group

New Seven Q.C. Tools

Advantages of Affinity Diagrams (cont.)

Raises everyones level of awareness

Spurs to the group into action

New Seven Q.C. Tools

Constructing an Affinity Diagram

Collect verbal data by brainstorming

Discuss info collected until everyone

Write each item on separate data card

Spread out all cards on table

New Seven Q.C. Tools

Constructing an Affinity Diagram

Move data cards into groups of similar

Combine statements on data cards

Make new card with Affinity statement

Continue to combine until less than 5

New Seven Q.C. Tools

Constructing an Affinity Diagram

Lay the groups outs, keeping the

New Seven Q.C. Tools