Quality Circle Forum of presents India

- simplified

NEW SEVEN TOOLS & PRIORITIZATION ANYLYSIS

MATRIX DATA ANALYSIS

What is matrix Data Analysis?

Matrix Data Analysis is a multivariate analysis technique called 'Principal Component Analysis'. This technique quantifies and arranges data presented in a Matrix Diagram, to find more general indicators that would differentiate and give clarity to large amount of complexly intertwined information. This will help us to visualise properly and get an insight into the situations.

We know problems are many and of different nature. Every company needs a battery of tools and techniques in solving problems of cost, quality and productivity. The old seven tools of Quality Control are simple to understand and apply.

SEVEN TOOLS NEW SEVEN TOOLS

As mentioned by Dr.K.Ishikawa, seven tools (old) can solve around 95% of the work related or shop floor and management related problems.

What about the balance problems?

They are normally more difficult chronic problems. They call for experience and the need of understanding and analysing the verbal data.

NEW SEVEN TOOLS PDPC MATRIX DIAGRAM MATRIX DATA ANALYSIS TREE DIAGRAM RELATIONS DIAGRAM AFFINITY DIAGRAM NEW SEVEN TOOLS

This gave rise to development of new seven tools to be used by mostly management personnel. Among these Affinity Diagram, Tree Diagram, Matrix Diagram, Arrow Diagram and Process Decision Programme Chart are essentially planning tools and useful in analysing and processing verbal data.

Still you find certain problems persist and application of these tools cannot help to solve them. As you know many time problems are intertwined.

What you try to apply as remedial measure to one may cause an adverse effect on others. Often you do not solve the entire problem.

Why am I not able to apply the same solutions to all the problems?

Let us say in a factory they are operating a machine. This machine over a period has worn out and is giving rise to variations in many aspects.

When I said problems with calender, I did NOT mean this CALENDAR!!!

For example in a rubber factory they have process problem in the calendering area (Calendering is a process of insulating the warp sheets with rubber compound in rubber industry ). The rolls of the calender were worn out and it had to be sent for regrooving.

There is variation in the pressure applied to the rolls and also the water circulated inside the rolls for cooling is not to the required level due to defective cooling system. Added to that warp sheet received from supplier is baggy and slightly damaged. Even the compound is causing problem.

SYNCHRONOUS

2 FABRIC 1

Production needs to be carried out without any major violation of quality norms. Under these circumstances, the production man after analysing the various problem aspects decides on a course, which is best under the given circumstances. He may decide that a little more of rubber gauge is alright as it is only leading to excess consumption of rubber compound (causing monetary loss), but ensures the warp Sheet is not crushed by the roll which may have adverse effect on quality.

Often in process area when problems are faced it calls for certain compromise.

They call for analysing the situations and deciding on important parameters which need to be identified for effective functioning.

Such analysis calls for first pooling up and studying the accumulated data.

In case of the above example we must have a a) fresh look into the number of warp sheet rolls available, b) number of compound batches available and the variation in its properties (lab data), c) how best the cooling water temperature can be managed and d) what will be the effect of variation in roll pressure when applied to the various types of fabrics etc.

All these information are more in number, complex and intertwined. We should know how to analyse these data to get a best combination under the given circumstances.

Do we face such situations only in processing condition?

No, not necessarily, we may face them even in normal life.

For example in our country coalition government has become a way of functioning. Under this, election becomes inevitable when the ruling party loses the support. We have faced this situation many time. Under such circumstances normally question before us is to whom we should cast our vote.

V O T E F O R

If we belong to a party our problem is simple. We vote to that party candidate. But most of us have no party affiliation.

Do we vote for Congress, BJP, United Front or an independent? How do we decide that? Is there any method available?

Yes we can decide about it in a systematic way. First write down in a paper what are our expectations.

We want poverty to be eradicated and a better living condition

better communication system

favourable balance of trade,

corruption free government and the list goes on.. Each one of them again can be split into various aspects.

In our fifty years of freedom we have also acquired certain experiences about the various parties. Each party has certain plus points and many minus points. We also know none of them will be able to fulfill all our expectations. Not only that, they may do well in an area but in the process may cause further aggravation to an existing problem.

So we should know the priorities and based on that choose the party.

BJP
INDEPENDENT

UNIT E FRO D NT

SS NGRE CO

From these two examples we can notice some problems call for processing of large amount of numerical data, which are complex and intertwined.

N M-

+u

y ) -x (x 2 exp 2=A
) ex p xp2 A+B AB+Be ( +2

= +C +B A (

K-B-M=16

2 ( y ( x-x ) 2 y)

Y=

m c

KA -B= 16

Q P+

Matrix Data Analysis is a tool with which we can quantify and arrange these data and using certain formula can get a clarity of the situation. Matrix Data Analysis is a Multivariate Analysis technique called Principal Component Analysis. Unlike the other six tools belonging to this group it uses numerical data. Why was this selected?

According to Mr.Yoshinobu Nayatani, who was a member of the group which identified these new seven tools "Every company needs a battery of techniques for sorting out large quantities of complex interrelated data and identifying and solving problems. Such techniques are needed in addition to the original seven Quality Control tools and other statistical methods. There are two types of complex interrelationships: Those among verbal data and those among numerical data. We believe it is now essential for companies to acquire and use techniques for sorting out both types. This is why Matrix Data analysis was included in the Seven New Quality Control Tools when they were first proposed".

a) Few years back in the railways one steam engine repair shop which was employing more than 500 people faced a problem.

Since the steam engines were phased out they had to close their workshop. What to do with the workmen?

We cant sack them. Transferring them is an easy way out, John, but that will not solve the problem.

They cannot be thrown out of the job. The alternative available to them was transferring these people to various places.

At that time the Chief Engineer of that place came out with an idea. He suggested that why not convert the steam engine repair shop as Diesel Engine repair shop.

But that would call for application of Quality Function Deployment method. He discussed it with all the workers and made them to understand that this idea was better as they need not leave from the place where they were for more than twenty years.

You dont bother about their present position. Advantages outweigh the ego problem.

But allocation of new job would be based on various parameters like age, experience, job knowledge, physical condition, educational qualification, etc.

You prepare the list showing their age, experience, physical condition etc. and compare it with the job requirement giving due weightage

Against the present job requirement these aspects will be compared giving due weightage to them.

He used the Matrix Data Analysis method and the problem was resolved to the satisfaction of everyone involved.

b) Marketing of consumer products of different variations based on the economic strata.

RF TU
TURF

(ONE PRODUCT FOR ALL SEGMENT)

A famous well established soap and detergent manufacturer, lost a very good market segment, as they did not work out the market strategy based on different economic strata of the people

SURMA!!!THE CHEAPEST AND THE BEST DETERGENT AVAILABLE IN THE MARKET. ANYBODY CAN AFFORD IT!!!!!

Another manufacturer came out with a detergent which was slightly inferior in quality compared to the one marketed by the established organisation, but the price was much less, suiting lower income group

What the hell are you doing as the marketing head? You could not inform me about Surma which has been launched?

This lured the low income group which is the highest in the country and the new manufacturer captured the market.

A consumer product marketing calls for collecting relevant data about people of different income, age, education, habit etc., With the help of Matrix Data Analysis they can workout the market strategy.

This is applicable to not only soap, but also to other products like Television, Washing Machine, Refrigerator etc.

c) Long back a fiction was written by Eugene Burdick an American novelist titled '480'. It is not PL 480. It is division of American population into 480 groups.

Various parameters were chosen and they were applied to the people and they were categorised into 480 groups. The aspects which were attractive to each group was identified and a strategy was worked out to lure them using that. The purpose was to show how even the so called intelligent people could be fooled and made to choose what the manipulator had decided.

In that book it was to make the American Citizens to elect a particular person as President of the country. Even though Eugene Burdick did not talk about 'Matrix Data Analysis' the idea suggested shows how Matrix Data Analysis can be used for this. (Politicians to note).

I knew I would win the college elections this year. I was equipped with the knowledge of Matrix Data Analysis

Can I use Matrix Data Analysis to solve all these problems???

There are many areas, situations wherein the Matrix Data Analysis can be used effectively to achieve the objective.

As can be seen, the Matrix Diagram arranges the information in a row-column format with the degree of relationship or correlation shown by symbols or numerical values. When the number of rows and columns is large and numerical values of interrelationship are entered, it is almost impossible to get a total picture of relative importance of the sets of variables on the problem at hand.

Oh!my God! I cant make head or tail out of it..

Consider for example the following tabulation of some financial indication of 30 different companies.

No

FINANCIAL INDICATOR

1 x1.1 x2.1 x3.1 x4.1 x5.1 x6.1 x7.1 x8.1 x9.1 x10.1 x11.1 x12.1

2 x1.2 x2.2 x3.2 x4.2 x5.2 x6.2 x7.2 x8.2 x9.2 x10.2 x11.2 x12.2

... ... ... ... ... ... ... ... ... ... ... ... ...

29 x1.29 x2.29 x3.29 x4.29 x5.29 x6.29 x7.29 x8.29 x9.29 x10.29 x11.29 x12.29

30 x1.30 x2.30 x3.30 x4.30 x5.30 x6.30 x7.30 x8.30 x9.30 x10.30 x11.30 x12.30

1. Net sales/Income from operations 2. Other Income 3. Total expenditure 4. Interest 5. Profit Before tax 6. Depreciation 7. Provision for tax 8. Profit after tax 9. Capital employed 10. Resources 11. Ratio of earning to dividends 12. Ratio of total liabilities to net worth.

The data are represented by 'xij' i.e., the ith indicator for the ith company. There are thus 12 x 30 = 360 observations. This volume of data makes it impossible to obtain a clear over all picture of what the data means. Our interest would be to identify which indicators are best to differentiate among the companies and present in a chart which companies are in the stronger position and which are in danger.

The 12 financial indictors shown above were all selected as likely to affect overall evaluation of companies prosperity.

S B I

STOCK EXCHANGE

However, a question arises as to whether share holders or banks do really assess from so many dimensions.

Is it possible to narrow down to a suitable set of basic indicators?

The answer is yes and the methodology is called Multi Variate Analysis a well known statistical technique. It was developed long ago and thus is not a new tool.

Its application to quality improvement makes it useful to quality control mangers and practitioners.

One needs knowledge of matrix algebra as the analysis of data requires complex calculations. The particular format of this analysis is the principal component analysis.

Computer packages are available to carry out such analysis. It is not intended in this brief write up to explain as to how to carry out multi variate analysis.

The basic analysis is to obtain a correlation matrix. The numerical value of strength of relationship between two or more variables is given by an index called the Correlation Coefficient.

If x and y are the variables say height and weight of individuals, then the correlation coefficient between height and weight is given by
( x-x ) ( y-y ) = ( x-x )2 ( y-y )2 and y =y and there are n n

where = x = x individuals.

How such a correlation matrix looks can be seen by the following published example in the book Management for Quality Improvement: The New Seven Tools, edited by Shigeru Mizuno.

The example is food preference among men and women in different age groups for 100 food types. Evaluation on a scale 1 to 9 (1 indicating higher preference and 9 indicating the lower), is shown in the following table:

Average preference of food product by men and women Group Product 1 Product 100 Men
<15 yrs. 3.1 16-20 yrs. 2.8 21-30 yrs 3.0 >41 yrs 2.5 7.8 5.4 3-9 3.0 4.6 3.8 4.4 3.5 ..... .. ...... .....

Product 2

.....

Women
<15 yrs 3.9 16-20 yrs 3.5 8.1 6.0 6.2 7.2 ..... .....

The correlation matrix worked out for each group was as follows:

Men
20 21-30 15 yrs 31-40 1 6 16-20 >41 2 7 21-30 31-40 3 8 9 >41 4 10

Women
15yrs 165

2 3 4 5 6 7 8 9 10 0.773

0.871 0.516 0.370 0.172 0.938 0.811 0.615 0.500 0.852 0.330 0.911 0.759 0.604 0.402 0.821 0.838 0.709 0.647 0.457 0.852 0.726 0.517 0.658 0.698 0.701 0.558 0.875 0.358 0.488 0.620 0.721 0.632 0.208 0.354 0.523 0.710 0.748 0.889 0.746 0.621 0.493 0.642 0.894 0.768

The above table shows how to reduce the original 100 x 10 observations for 10 groups into a compact table showing the interrelationships.

Further analysis is carried out by Principal Component Analysis wherein, the total variation in the data is usually explained by one or two principal components. (Principal component is basically a data transformation used to make interrelated original variables into a plane/space that can be independently studied). The first two principal components can be graphically represented on a xy plane and the influence of the different variables and the relation can be studied.

Examples
No detailed examples of the use of Matrix Data Analysis are given here. Use of these technique to such problems as forecasting fashion cycle, Desired car styles and Control of wrinkles in the manufacture of pressed products etc., are reported in literature.

Summary Matrix Data Analysis or Principal Component Analysis is a very useful method in all service and process industries where complexity of the problems are order of the day. With the availability of ready to use computer soft wares, it should not pose as a problem to the organisations to make use of this method.