7 Tool Common

8/13/2019 7 Tool Common

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2. Histogram

Histogram is used for illustrating the frequency and the extent inthe context of two variables.

Histogram is a chart with columns. This represents thedistribution by mean. If the histogram is normal, the graph takesthe shape of a bell curve.

If it is not normal, it may take different shapes based on thecondition of the distribution. Histogram can be used to measuresomething against another thing. Always, it should be twovariables.

Consider the following example: The following histogram showsmorning attendance of a class. The X-axis is the number ofstudents and the Y-axis the time of the day.


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3. Cause and Effect Diagram

Cause and effect diagrams (Ishikawa Diagram) are used forunderstanding organizational or business problem causes.

Organizations face problems everyday and it is required tounderstand the causes of these problems in order to solve them

effectively. Cause and effect diagrams exercise is usually ateamwork.

A brainstorming session is required in order to come up with aneffective cause and effect diagram.

All the main components of a problem area are listed andpossible causes from each area is listed.

Then, most likely causes of the problems are identified to carry

out further analysis.


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4. Check Sheet

A check sheet can be introduced as the most basic tool forquality.

A check sheet is basically used for gathering and organizingdata.

When this is done with the help of software packages such asMicrosoft Excel, you can derive further analysis graphs andautomate through macros available.

Therefore, it is always a good idea to use a software check sheetfor information gathering and organizing needs.

One can always use a paper-based check sheet when theinformation gathered is only used for backup or storing

purposes other than furtherprocessing.


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5. Scatter Diagram

When it comes to the values of two variables, scatter diagramsare the best way to present. Scatter diagrams present therelationship between two variables and illustrate the results on aCartesian plane.

Then, further analysis, such as trend analysis can be performedon the values.

In these diagrams, one variable denotes one axis and anothervariable denotes the other axis.


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6. Control Charts

Control chart is the best tool for monitoring the performance ofa process. These types of charts can be used for monitoring anyprocesses related to function of the organization.

These charts allow you to identify the following conditionsrelated to the process that has been monitored.

Stability of the process

Predictability of the process

Identification of common cause of variation

Special conditions where the monitoring party needs toreact


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7. Pareto Charts

Pareto charts are used for identifying a set of priorities. You canchart any number of issues/variables related to a specific

concern and record the number of occurrences.

This way you can figure out the parameters that have thehighest impact on the specific concern.

This helps you to work on the propriety issues in order to getthe condition under control.


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Conclusion

Above seven basic quality tools help you to address differentconcerns in an organization.

Therefore, use of such tools should be a basic practice in the

organization in order to enhance the efficiency.

Trainings on these tools should be included in theorganizational orientation program, so all the staff members getto learn these basic tools.

Benchmarking If a company is to be successful, it needs toevaluate its performance in a consistent manner.

In order to do so, businesses need to set standards for

themselves and measure their processes and performanceagainst recognized industry leaders or against best practicesfrom other industries, which operate in a similar environment.

This is commonly referred to as benchmarkingin managementparlance.


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The benchmarking process is relatively uncomplicated. Someknowledge and a practical dent is all that is needed to makesuch a process a success.

Therefore, for the benefit of corporate executives, students and

the interested general populace, the key steps in thebenchmarking process are highlighted below.

A Step-by-Step Approach to Benchmarking

(1) Planning:

Prior to engaging in benchmarking, it is imperative thatcorporate stakeholders identify the activities that need to bebenchmarked.

For instance, the processes that merit such consideration wouldgenerally be core activities that have the potential to give thebusiness in question a competitive edge.

Such processes would generally command a high cost, volume

or value. For the optimal results of benchmarking to be reaped,the inputs and outputs need to be redefined; the activitieschosen should be measurable and thereby easily comparable,and thus the benchmarking metrics needs to be arrived at.

Prior to engaging in the benchmarking process, the totalprocess flow needs to be given due consideration. For instance,


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improving one core competency at the detriment to anotherproves to be of little use.

Therefore, many choose to document such processes in detail(a process flow chart is deemed to be ideal for this purpose), so

that omissions and errors are minimized; thus enabling thecompany to obtain a clearer idea of its strategic goals, itsprimary business processes, customer expectations and criticalsuccess factors.

An honest appraisal of the company's strengths, weaknessesand problem areas would prove to be of immense use when fine-tuning such a process.

The next step in the planning process would be for the company

to choose an appropriate benchmark against which theirperformance can be measured.

The benchmark can be a single entity or a collective group ofcompanies, which operate at optimal efficiency.

As stated before, if such a company operates in a similarenvironment or if it adopts a comparable strategic approach toreach their goals, its relevance would, indeed, be greater.

Measures and practices used in such companies should beidentified, so that business process alternatives can beexamined.

Also, it is always prudent for a company to ascertain itsobjectives, prior to commencement of the benchmarkingprocess.

The methodology adopted and the way in which output isdocumented should be given due consideration too. On such

instances, a capable team should be found in order to carry outthe benchmarking process, with a leader or leaders being dulyappointed, so as to ensure the smooth, timely implementation ofthe project.


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(2) Collection of Information:

Information can be broadly classified under the sub texts of

primary data and secondary data.

To clarify further, here, primary data refers to collection of datadirectly from the benchmarked company/companies itself, whilesecondary data refers to information garnered from the press,publications or websites.

Exploratory research, market research, quantitative research,informal conversations, interviews and questionnaires, are still,some of the most popular methods of collecting information.

When engaging in primary research, the company that is due toundertake the benchmarking process needs to redefine its datacollection methodology.

Drafting a questionnaire or a standardized interview format,carrying out primary research via the telephone, e-mail or inface-to-face interviews, making on-site observations, anddocumenting such data in a systematic manner is vital, if thebenchmarking process is to be a success.

(3) Analysis of Data:

Once sufficient data is collected, the proper analysis of suchinformation is of foremost importance.

Data analysis, data presentation (preferably in graphical format,for easy reference), results projection, classifying the

performance gaps in processes, and identifying the root causethat leads to the creation of such gaps (commonly referred toas enablers), need to be then carried out.

(4) Implementation:This is the stage in the benchmarking process where it becomesmandatory to walk the talk. This generally means that far-


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reaching changes need to be made, so that the performance gapbetween the ideal and the actual is narrowed and eliminatedwherever possible.

A formal action plan that promotes change should ideally be

formulated keeping the organization's culture in mind, so thatthe resistance that usually accompanies change is minimized.

Ensuring that the management and staff are fully committed tothe process and that sufficient resources are in place to meetfacilitate the necessary improvements would be critical inmaking the benchmarking process, a success.

(5) Monitoring:

As with most projects, in order to reap the maximum benefits ofthe benchmarking process, a systematic evaluation should becarried out on a regular basis.

Assimilating the required information, evaluating the progressmade, re-iterating the impact of the changes and making anynecessary adjustments, are all part of the monitoring process.

Conclusion:

As is clearly apparent, benchmarking can add value to theorganization's workflow and structure by identifying areas forimprovement and rectification.

It is indeed invaluable in an organization's quest for continuousimprovement.

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