Business

1. 1. Seven Quality Tools• The Seven Tools – Histograms, Pareto Charts, Cause and Effect Diagrams, Run Charts, Scatter Diagrams, Flow Charts, Control Charts

2. 2. Ishikawa’s Basic Tools of Quality

• Kaoru Ishikawa developed seven basic visual tools of quality so that the average person could analyze and interpret data.

• These tools have been used worldwide by companies, managers of all levels and employees.

3. 3. Histograms Slide 1 of 3•

4. Histogram Defined – A histogram is a bar graph that shows frequency data. – Histograms provide the easiest way to evaluate the distribution of data.

5. 4. Histograms Slide 2 of 3•

6. Creating a Histogram – Collect data and sort it into categories.

7. – Then label the data as the independent set or the dependent set.

• The characteristic you grouped the data by would be the independent variable.

• The frequency of that set would be the dependent variable.

– Each mark on either axis should be in equal increments.

– For each category, find the related frequency and make the horizontal marks to show that frequency.

8. 5. Histograms Slide 3 of 3•

Examples of How Histograms Can Be Used –

Histograms can be used to determine distribution of sales.

9. – Say for instance a company wanted to measure the revenues of other companies and wanted to compare numbers.

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11. 6. Pareto Charts Slide 1 of 4• Pareto Chart Defined

12. – Pareto charts are used to identify and prioritize problems to be solved.

13. – They are actually histograms aided by the 80/20 rule adapted by Joseph Juran.

14. • Remember the 80/20 rule states that approximately 80% of the problems are created by approximately 20% of the causes.

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16. 7. Pareto Charts Slide 2 of 4• Constructing a Pareto Chart

17. – First, information must be selected based on types or classifications of defects that occur as a result of a process.

18. – The data must be collected and classified into...