3.7 Management and Planning Tools

F. Management and Planning Tools

The management tools are focused on managing and planning quality improvement techniques. These tools are often referred to as the 7M tools. These are explained below. 

1. Affinity Diagrams

This has been discussed in the earlier section. See Team Effectiveness Tools.

2. Tree Diagrams

(Also called hierarchy diagram, analytical tree, tree analysis)

The tree diagram is used to stratify ideas into subsequent levels of detail. The idea becomes easier to understand or the problem easier to solve by the tree diagram. The tree diagram starts with one item that branches into two or more stems. Each of these branch into two or more, and so on. The main trunk is the generalized goal, and the multiple branches are the finer levels of action. 

The tree diagram is a generic tool that has wide applications. It can be used when 

broad options have to be narrowed down to specific details

developing interrelated steps to achieve an objective

finding out root causes of problems as part of process improvements

correcting the existing plans or procedures

developing events or actions that will impact a solution

The procedure to draw a tree diagram has already been discussed in the earlier sections.See Planning Tools.

3. Interrelationship Diagraphs

Interrelationship Diagraphs are used to examine the relationship between complex issues. It is made to illustrate the relationship between various factors, areas, or processes. It can also be used as a means of organizing disjointed ideas (usually generated from brainstorming). The analysis by an Interrelationship Diagraph aids in making a distinction between elements which operate as the root causes and those which are the outcomes of the root cause. These root causes can then be used for further analysis in problem resolution. 

Steps in generating an interrelationship diagraph:

1. The group has to define the particular issue or problem under discussion. 

2. Write down all the factors or ideas on pieces of paper. These have to be pasted on a large flip-chart or any working surface. 

3. Link each factor to all others. Use an arrow, also known as “influence arrow”, to link related factors. 

4. Draw the “influence arrows” from the factors that influence to those which are influenced. 

5. If two factors influence each other, the arrow should be drawn to reflect the stronger influence. 

6. Count the arrows. 

7. The elements with the most outgoing arrows will be root causes or drivers. 

8. The ones with the most incoming arrows will be key outcomes or results. 

Example: A pizza chain is involved in home delivery of pizzas. An interrelationship diagraph can be derived and the interrelationship between the various factors like the product (pizza) quality, sales, delivery time, quality of manpower etc. can be found out.

From the interrelationship diagraph, it is clearly visible that the most number of arrows are originating from incompetent staff. They are root cause of the outcome, that is low sales and eventually fall in profits. 

4. Matrix Diagrams

A Matrix diagram is an analysis tool that compares relationships between two, three, or four sets of data. It gives information about the nature of correlation between the elements, such as its strength, roles donned by various individuals, or measurements. It is a representation of elements in a tabular form.

A Matrix diagram can be used:

while trying to comprehend how groups of items relate to one another or affect one another

while comparing the efficiency and effectiveness of the options

when comparing cause-and-effect relationships

when designating responsibilities for tasks among a group of options. 

Different shapes of matrix diagrams

An L-shaped matrix relates two set of elements to each other, and sometimes one set of elements to itself. The elements are compared by placing them in the first row and top column.

A T-shaped matrix relates three set of elements in such a way that sets X and Y are related to Z, but X and Y are not related to each other.

A Y-shaped matrix relates three set of elements in such a way that each set is related to the other two set of elements, i.e. they are related in a circular manner. Suppose X is related to Y, and Y is related to Z, then Z is also related to X.

An X-shaped matrix relates four set of elements and each set is related to two other set of elements in a circular manner. Suppose W is related to X, X is related to Y, Y is related to Z, Z is related to W, but W is not related to Y, or X is not related to Z.

A C-shaped matrix relates three set of elements simultaneously, in a 3-dimensional manner. It is difficult to draw and therefore is rarely used.

Steps in generating a matrix diagram:

1. Define which set of elements have to be compared. 

2. Choose the format for the matrix ( these will be discussed subsequently) 

3. Make the grid; list the items as row/column headings. 

4. Think of what to tell, which relationship to state, with symbols on the matrix. There are some commonly used symbols like ‘X’s and blanks, or check marks to indicate ‘yes’ or ‘no’. There are more symbols which make the matrix more understandable. These may show the strength of the relationship between two items, or what role the item plays in the activity.

5. Compare the sets of elements, item by item. Place the appropriate symbol at the intersection of the box of the paired items for each comparison. 

6. Analyze the matrix for patterns. This information can be used for further analysis or to resolve a problem.

Example: L-shaped Matrix

The L-shaped matrix is the most basic and common matrix format. This matrix relates a pizza chain’s objectives to its systems or procedures. For example, effective advertising has a strong relation with increasing the financials of the company. Regular checks on cooking procedures have a direct impact (strong relationship) on food quality, and so on. 

Example: T-shaped Matrix

The T-shaped matrix relates four product models P, Q, R, S (say tires) (group X), to their manufacturing locations (group Y) and to their buyer groups (group Z). The matrix can be viewed in different ways to pinpoint different relationships. For example, Ford is a major buyer of Tire P, but it buys Tire S in small volumes. Tire Q is produced in large volumes in the Rome unit, and in small volumes in the Paris unit, and is bought in big volumes by BMW. Volkswagen is the only customer who buys all the tire types.

The Y-shaped matrix shows the correlation between customer requirements of a Pizza company, the departments involved, and the internal process metrics. The matrix tells something about the requirements of the customer: on-time delivery. The delivery department is primarily involved in delivering the pizzas. The two metrics, order lead time and kitchen inventory, are most strongly related to on-time delivery. It can also be seen that delivery has a weak relationship with order lead time, and no relationship with kitchen inventory levels. Again, carrier performance directly impacts delivery of pizzas. Therefore, it can be concluded that maybe the requirement of on-time delivery needs to be reevaluated. 

Example: X-shaped Matrix

The T-shaped matrix becomes an X-shaped matrix by adding another dimension to the T-shaped matrix. In the example of the T-shaped matrix given above, a fourth group of items, transport lines, are related to the production units they cater to and the buyers who use them. The product types are related to the production units and to the buyers, but not to the transport lines. For example, Quick Express and Blue Lines are the major transporters based on volume. On the other hand, Trans World and Green Dart seem to be the minor transporters. Mercedes is the only major buyer of Type R tires. Volkswagen buys all the tire types.