Proposing an Integrated Framework of Seven Basic and New Quality Management Tools and Techniques: A Roadmap PDF

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Proposing an Integrated Framework of Seven Basic and New Quality Management Tools and Techniques: A Roadmap Arash Shahin Department of Management, University of Isfahan, Isfahan, Iran E-mail: [email protected] Tel: +98-913-1054482; Fax: +98-311-6682910 S. Mohammad Arabzad Young researchers clu...

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Proposing an Integrated Framework of Seven Basic and New Quality Management Tools and Techniques: A Roadmap Arash Shahin Department of Management, University of Isfahan, Isfahan, Iran E-mail: [email protected] Tel: +98-913-1054482; Fax: +98-311-6682910 S. Mohammad Arabzad Young researchers club, Islamic Azad University, Najafabad Branch, Isfahan, Iran Mazaher Ghorbani Department of Industrial Engineering, Islamic Azad University Najafabad Branch, Isfahan, Iran

Abstract In the businesses of today, managers and decision makers are often face diversified and complicated problems. The use and application of quality tools and techniques within an effective problem solving methodology are essential to understand and facilitate improvement in any process. Most of the quality-related problems can be solved with the seven basic quality tools and techniques (QC7). Also the seven new quality tools and techniques (M7) are attracting decision makers and expects and their use is increasingly growing. This paper has proposed a new roadmap to apply seven basic and new quality tools and techniques in an integrative framework. For this purpose, a number of experts have been asked to fill a matrix questionnaire. Two approaches have been used to analyze the questionnaires' results. They have been analyzed and prioritized through simple comparison of their average values and also through permutation. The findings imply that QC7 tend to be mostly precedent to M7. Keywords: Decision making, Quality management, Seven tools and techniques

1. Introduction In the businesses of today, managers and decision makers often face diversified and complicated problems and in order to solve such problems, tools and techniques are needed to identify, analyze and resolve them. On the other hand, quality requirements are dictated from customers. A good decision supports the organization’s goals in accomplishing what is prioritized, valued and important (Omar and Kleiner, 1997). The complexity of problem solving requires use of quality tools and techniques to assist organization in analysis of information and associated data. Ahmed and Hassan (2003) argued that quality management (QM) cannot be ensured without the application of the appropriate tools and techniques, and firms with greater implementation of the tools and techniques can improve their business results. A “decision” is a conscious selection from a course of actions of which there is more than one option. Even when a person thinks she/he has no choice in the matter, there remains a decision to © Research Journal of Internatıonal Studıes - Issue 17 (.November., 2010)

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choose between deciding and not deciding! To not decide and leave a matter up to fate or in the hands of others really is a decision not to decide (Omar and Kleiner, 1997). Problem solving is “a systematic methodology for examining the workings of a process to correct performance deficiencies, and to improve processes and attain even higher levels of performance” (Brassard et al., 2000). According to McQuater et al. (1995), tools and techniques are practical methods, skills, means or mechanisms that can be applied to particular tasks. They are used to facilitate positive change and improvements. A single tool may be described as a device that has a clear role. Examples of specific tools are cause and effect diagrams, Pareto analysis, etc. A technique has a wider application, often resulting in the need for more thought, skill and training to be used effectively. Techniques can be thought of as a collection of tools, for example statistical process control (SPC) uses charts, graphs, histograms, etc. Examples of techniques are SPC, benchmarking, quality function deployment (QFD), failure mode and effects analysis (FMEA), and design of experiments (DOE). QTT are vital to quality improvement. These tools may affect performance (Flynn et al., 1995; Rene et al., 2005) because they make it possible to determine the root cause of quality problems, in order to identify and solve such problems or to identify opportunities for improvement. Seven basic quality tools (QC7) include check sheet, histogram, Pareto chart, Cause and effect chart, graphical tools, scatter plot and control chart. Seven new quality tools (or the seven management tools; M7) include affinity diagram, relation diagram, tree diagram, matrix diagram, matrix data analysis (prioritization matrices), process decision program chart (PDPC) and procedure diagram. Managers often deal with structuring unstructured ideas, formulating business plans, or organizing and controlling complex projects. Tennant et al. (2001) conclude that although there are many different problem-solving approaches available, the best are simple models that can be applied at all levels from senior management to junior staff. The major benefit of quality tools is a greater understanding of the process to which such tools have been applied. Up to 95 percent of quality-related problems can be solved with the QC7 (Ishikawa, 1985). Also the seven new quality tools and techniques (M7) are attracting decision makers and expects and their use is increasingly growing. While managers may know how to manipulate quantitative data, their success requires an additional set of tools to manage verbal information (Spring et al., 1998). In recent decades, public, private and third-sector organizations have been awakened to the necessity of creating and ensuring quality in every aspect of their operations. Dale (2003) noted that no one technique is more important than any other, but that they are all different and applicable in different situations. Each technique has unique effectiveness and can emphasize the same data in different ways. Because there are many tools to select, the problem solver needs an understanding of the tool and how and when it is to be used (Hagemeyer et al., 2006). Getting skilled in using a variety of approaches is necessary for the decision maker to employ the most effective tool for problem solving. Tools which by their approach build consensus are very useful in achieving an optimum and committed decision that considers all available inputs (Omar and Kleiner, 1997). So a good problem-solving framework provides managers with information about stages of problem-solving as well as an appropriate tool for each stage. The framework can represent a roadmap for utilization of the approaches in a proper sequence. By using a combination of tools and techniques it is possible to highlight complex data in a simple, visually powerful way; evaluate areas that cause the most problems; give direction for areas to be prioritized; show relationships between variables; establish causes for failure; show distribution of data; and determine whether the process is acting in a state of statistical control; and highlight the effect of special causes of variation where present. The key message is that without an effective employment and mix of tools and techniques, it is difficult to solve problems. In other words, “if you only have a hammer, it is surprising how many problems look like nails” Dale (2003). Within the field of QM there appears to be no shortage of literature that describes in various depth the application of QC7 and M7 tools and techniques. For example, Ishikawa (1976) and Juran (1988a; 1988b) provide “how to” manuals for the implementation of improvement QC7 tools and techniques. Barker (1989) discusses the use of M7. Dale and McQuater (1998) directly tie-in the © Research Journal of Internatıonal Studıes - Issue 17 (November, 2010)

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application and use of QM tools and techniques with managed business improvement. Bunney and Dale (1999) dedicate an entire chapter to the explanation, description, use and possible outcomes of the application of QTT. According to Spring et al. (1998), it is generally acknowledged that the use and application of QTT within an effective problem-solving methodology are essential to understand and facilitate improvement in any process. Dale and McQuater (1998) report that the use of tools and techniques is not as widespread and effective as might be expected, and suggest that a part of the problem is due to insufficient training in the use and application of these approaches. Spring et al. (1998) have identified that the results from the application of a particular tool or technique rely heavily on the skills and experience of those implementing it. Some of the authors argue that QC7 are usually perceived as too simplistic and not appropriate (Lamb and Dale, 1994). However, manufacturing engineers, presumably with a mandate to maintain and improve manufacturing processes should use such improvement approaches. Rather than training, as Dale and McQuater (1998) suggest, perhaps the problem is one of perceived relevance, or pressure of work and a lack of time. Ahmed et al. (2005) Mentioned that measurements constitute only the first step towards the never-ending cycles of continual process improvement and that the objective is to use the results obtained from such measurements to decision making, in order to achieve continual improvement and therefore satisfy the customers’ ever ending needs and requirements. Bunney and Dale (1997) and Spring et al. (1998) stated that the applications of QTT within a problem solving methodology are essential to understand and facilitate improvement in any process. Authors such as Lam (1996); Curry and Kadasah (2002); Ahmed and Hassan (2003); Vouzas (2004); Sousa et al. (2005); Bamford and Greatbanks (2005); Hagemeyer et al. (2006); and Alsaleh (2007) make a distinction between the QTT according to the simplicity of their understanding and application. Lam (1996) found that quality tools usage is confined to relatively simple tools. The QC7 are popular, but most of the sophisticated quality techniques such as QFD and DOE are used by fewer than 10 percent of the responding companies. Curry and Kadasah (2002) observed that the most often used quality tools are the simple ones such as check sheet, flow chart and brainstorming, while the more sophisticated tools are not used. The results also showed that TQM driver firms performed better than non-TQM driver firms with regard to QTT application. According to Ahmed and Hassan (2003) findings, small and medium industries (SMEs) do not make full and efficient use of QTT. QC7 are the most frequently used, while the more advanced quality techniques such as SPC, QFD and Taguchi’s methods are not popular. Vouzas (2004) investigated the status of the quality improvement efforts in selected Greek industrial organizations. According to his findings, he found that the short period of systematic implementation of the QTT is the main reason for the absence of a “quality culture” and moving towards strategic TQM. Sousa et al. (2005) found that the QTT used by the majority of the companies, although moderately, are the easiest way to understand and implement quality tools, such as graph, check sheet, process flowchart and histogram. However, companies do not seem to use tools and techniques such as control charts, scatter diagram and cause and effect diagram to a significant degree. Drew and Healy (2006) found the level of the usage of QTT such as benchmarking, SPC, JIT (Just in Time) and cause and effect diagram, as well as quality training are greater in companies committed to total quality. Alsaleh (2007) conducted a survey using a sample drawn from the Saudi food industry. The findings revealed an industry’s enthusiasm regarding the quality awards, given that more than two-third of the surveyed companies possessed a quality award. Quality tools such as control charts, histogram and run chart appeared to be utilized throughout the production stages at onethird of the surveyed companies. Grigg and Walls (2007) also studied the application of the statistical quality tools in food industry of the UK. Their study revealed that statistical tools such as control charts can provide advantage to organizations for creating process improvement and organizational learning and providing the charts utilized to actively convert the data they contain into information and knowledge about the process. Fotopoulos and Psomas (2008) found the tools such as check sheet, flow chart and data collection form are extensively used at least by two-third of the companies. Graph, histogram and benchmarking are used by approximately two-fifth of the companies. Quality tools, such © Research Journal of Internatıonal Studıes - Issue 17 (.November., 2010)

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as tree diagram and brainstorming seem to be used by one-third of the sample companies. Fewer companies (one quarter) seem to use tools such as cause and effect diagram, Pareto diagram and QFD, while even fewer (one-fifth) use run chart, steam and leaf diagram and the more advanced techniques. Finally, fewer than one-fifth of the companies use tools such as scatter diagram, control charts (i.e. X, R, S, P, NP, C, U), relations diagram, affinity diagram and force field analysis. The results of the investigation of Fotopoulos and Psomas (2008) showed that those companies interested in implementing a TQM program and acquiring a quality award and those companies that developed the quality system on their own, presented a higher degree of QTT application. He et al. (1996) Pointed to the role of the 14 tools and techniques in implementation of the culture of TQM in organizations and as a result, they propose a framework for improvement by the tools and techniques. Also Kennedy et al. (2006) proposed a solution framework by using verbal data analysis and determined the ratio of these data in problem solving processes. From the above literature review it is obvious that while many researchers have explored the level of use of QTT in several companies worldwide with different QM status, authors have pointed to the necessity of a systematic procedure of QM tools and techniques. Furthermore, in some articles a lack of integrated framework for using such tools and techniques is addressed (e.g. Bamford and Greatbanks, 2005; Ronald, 1995). Although quality concepts and techniques seem easy to understand, several books on TQM claim that, their application in complex processes, tend to be rather difficult and time consuming. Therefore, although “how” to use the tool/technique is usually discussed at some length, there is no order to help sort the approaches so that they can be properly applied and executed (Hagemeyer et al., 2006). Also, Bunney and Dale (1997) pointed out that such approaches should be use in specific time and place in order to have maximum efficiency. Therefore, in the following an attempt is made to propose an integrated framework for the two sets of seven quality management tools and techniques to create a safe path for managers and decision makers. A proposed classification scheme for problem-solving tools allows the user to identify the correct tool at the proper time in the problem-solving process. This may assist the problem solver to efficiently and effectively work toward problem solution.

2. Seven Basic Quality Management Tools and Techniques The seven basic tools and techniques of quality is a designation given to a fixed set of graphical techniques identified as being most helpful in troubleshooting issues related to quality (Montgomery, 2005). They are called basic because they are suitable for people with little formal training in statistics and because they can be used to solve the vast majority of quality-related issues (Ishikawa, 1985). The basic tools make quality improvement and monitoring activities, and giving feedback to quality improvement team much easier (Rao et al., 1996). So the suitability of QC7 tools to aid and support problem solving is generally accepted. A check sheet is a simple data-collecting tool for recording and classifying observed data manually. A histogram is a graphical tool for summarizing large amounts of data to show frequency distribution of a set of measurements. The Pareto analysis is based on Pareto’s “80-20” rule (Kolarik, 1995). Juran and Gryna (1988) stated that 20 percent of causes accounts for 80 percent of quality failures. Quality improvement can only be continued and achieved by solving problems. In order to do this, the main causes of a problem have to found. The Cause and effect chart is a qualitative tool for summarizing the results of cause-effect analysis. When a graphical representation of tools is needed, graphical tools such as bar chart and pie chart are used. The scatter plot provides a way of viewing a data set to detect trend, to spot operating regions or to explore relationships (correlation, cause-effect connections) between variables. A dynamic, inprogress or on-line tool for statistical process control is the control chart, used for indicating whether the monitored process is functioning as intended and when corrective actions are necessary (Kolarik, 1995). It also indicates whether a process is stable. © Research Journal of Internatıonal Studıes - Issue 17 (November, 2010)

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Figure 1 provides a structured approach to the application of the basic tools of QM. Similar structured approaches to problem solving have been recommended by many researchers (Tennant, 2001; Dale and McQuater, 1998; Straker, 1995), and are common within best practice industrial applications. Figure 1: A structured approach to the application of QC7 (Dale and McQuater, 1998)

3. Seven New Quality Management Tools and Techniques A set of effective approaches for decision makers is the seven new quality management tools and techniques, which is proved as very useful. They are not new, but in the last twenty years have grown in popularity in engineering and manufacturing applications (Omar and Kleiner, 1997). As six of these tools are used for analyzing numerical data, they are not very capable of dealing with non-numerical data. M7 were compiled in 1980s by JUSE (Union of Japanese Scientists and Engineers) (Berman and Klefsjo, 1994). The affinity diagram is a graphical brainstorming tool, used to group facts, opinions, ideas and customer desires according to some form of natural affinity. The relation diagram is a graphical causeeffect analyzing tool used in the problem identification and description phase of strategic quality planning when there is a need to clarify and understand complex relationships. It shows the logical connections between ideas and problems, while the affinity diagram shows the associations. The tree © Research Journal of Internatıonal Studıes - Issue 17 (.November., 2010) 187

diagram is used in a top-down manner to break down a topic into successive levels of detail until implementation. A main problem, a general idea or a main customer need can be broken down into its constituents. A long-term quality improvement goal can be broken down into a series of short-term goals. Therefore, it systematically traces the path from a quality goal down to highly detailed objectives and the means of implementing them. The matrix diagram is a tabular tool to facilitate the identification of relationships between two or more sets of factors. It is applicable to resource planning and sequencing, failure prevention, and so on. The matrix data analysis is only one of the M7 for analyzing numerical data. It serves to quantify the degree of the relationships between various factors. Its results are represented in a rectangular matrix (for the degree of relationships between the factors in two factor sets) or a triangular matrix (for the correlation between each pair of factors in one data set). The quantification of the degree of relationships is determined based on either subjective weights or statistical analysis (correlation analysis, factor analysis, etc.) on the data collected (Kolarik, 1995). The PDPC chart is a planning tool used to evaluate or assess process alternatives in the initial definition and development of processes in order to develop the best process at high level. It is used for displaying the sequence of actions and decisions needed to reach a desired result, or to prevent an undesired event. The procedure diagram is a planning and communication tool used to ensure the most suitable time planning for a certa...