05 - Mod 4 Quality Management Tools - v2.01 - 092719

CMQ-OE Certification Preparation
Module IV
Quality Management Tools
BoK OBJECTIVE
IV.A.1 The Seven

Classic Quality Tools
Select, interpret, and evaluate output

from these tools: Pareto charts, cause
and effect diagrams, flowcharts, control
charts, check sheets, scatter diagrams,
and histograms. (Evaluate)
Certified Manager of Quality/Organizational Excellence Certification Preparation v02.01 © 2019 ASQ. All Rights Reserved. 2
The Seven Classic Quality Tools
The seven classic tools for quality control, also
referred to as the seven basic quality tools, include:
• Flowcharts/process maps
• Check sheets
• Pareto charts
• Cause-and-effect diagrams
• Scatter diagrams
• Control charts
• Histograms
Each tool provides a means for organizing and

analyzing data.
Flowchart
Helps understand the steps and sequence of steps to any
process
Load files
Audit files Credit
Send memo
Distribute
Check Sheet
Warehouse 43
Damaged Defective Missing
Station 1
Station 2
Station 3
Station 4
Pareto Charts
Pareto principle states that 80 percent of process
variation is caused by 20 percent of the variables.
Cause-and-Effect Diagram
Helps you brainstorm potential causes of a major problem and
then organize and categorize those causes for further analysis.
Management
Environment
Process
Effect
People
Machine Materials
Scatter Diagram
Used to analyze and depict the relationship between two
different variables to determine whether a correlation exists
between them.
Control Charts
Control charts help users distinguish between variation that is
inherent in a process and variation that arises from sources
that come and go unpredictably.
60
50
40
Time
30
20
10
0
0 1 2 3 4 5 6
Day
Histogram
A bar graph that takes measurement data, separates them
into ranges, and displays their distribution to reveal the
amount of variation in the data set.
70
60
50
Frequency
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17
Steps
BoK OBJECTIVE
IV.A.2. Basic Management

and Planning Tools
Select, interpret, and evaluate output
from these tools: affinity diagrams, tree
diagrams, process decision program
charts (PDPCs), matrix diagrams,
prioritization matrices, interrelationship
digraphs, and activity network
diagrams. (Evaluate)
Affinity and Tree diagrams
Affinity Diagram Tree Diagram
Lean Safety Design

Order
Volume Injuries Machines Pickup
Accurate
Machine Noise Costs Tracking Info
Shipment
Product Setup
Delivery
useful when facts or

useful for moving broad
thoughts seem too large
goals to specifics
and too complex to grasp
PDPC and Matrix Diagram
Process Decision used to improve the

Program Chart implementation of new or revised
tasks that are complex
shows the presence and strength

Matrix Diagram
of relationships between data sets.
Task 1 Task 2 Task 3 Several formats to use depending
on number of groups of items
Role 1
Role 2
(L-shaped)
Interrelationship Digraph
Question: What factors increase defects?
Instructions not
clear
Training is Equipment is
inconsistent damaged
Operators are Quality of

not held incoming
accountable material is
for defects inconsistent
Activity Network Diagram
used to show the optimum
Activity Network Diagram schedule for fulfilling a plan and
tracking its progress
Identify Identify info

Assign roles Document
key tasks gaps
3 days key tasks
5 days 90 days 10 days
Gain Consensus Coordinate with

10 days managers
Coordinate with 10 days
operators
10 days
Prioritization Matrix
1. Identify criteria
Used as a rough 2-axis correlation 2. Determine weights
3. Identify variables
picture between two variables. 4. Apply scores
5. Calculate weight x scores
6. Sum across
Criteria Detectability Occurrence
Severity 7. Sort by sums
5 2 3
Variables
3 2 2
Wrong
15
25
color 4 6
3 5
sum
4
Folding
wrong 20 6
41
15
4 1 3
Missing
paper clip 20 2 9 31
BoK OBJECTIVE
IV.A.3 Process
Improvement Tools
Select, interpret and evaluate tools

such as root cause analysis, Kepner-
Tregoe, PDCA, six sigma DMAIC
(define, measure, analyze, improve,
control), and failure mode and effects
analysis (FMEA). (Evaluate)
Root Cause Analysis
If an organization eliminates the cause, it eliminates the
problem. If it fails to identify the cause, the problem will
probably recur.
Cause
Tools include:
Affinity diagrams
Cause-and-effect diagrams
Root
Flowcharts/process maps Cause
Interrelationship diagraphs
Tree diagrams
Five whys Cause
Root Cause Analysis
7 Step Problem-Solving Model
Problem solving is about identifying root causes that have
caused the problem to occur and taking actions to alleviate
those causes.
Identify the Search out the Identify

List possible
problem and most likely potential
root causes
the process root cause solutions
Follow up to Select and

Standardize
evaluate the implement a
the process
effect solution
Kepner-Tregoe Method
• Decision-making model to understand root cause
• When a problem occurs, K-T answers four basic questions
via the application of four rational processes
Problem Analysis (Why did it happen?
Situation Analysis
Decision Analysis (What should we do?)
(What happened?)
Potential Problem Analysis

(What does the future hold?)
PDCA
Four-step process improvement methodology
Continuously rotates
Provides a single root cause focus
Teaches process discipline
Six Sigma DMAIC
Six Sigma DMAIC
Define project objectives from the customer’s perspective
Measure the current process and set interim metrics to
measure progress.
Analyze current process-related problems and causes
Improve the process through pilot solutions
Control the improved process through monitoring and
standardization
Failure Modes and Effects
Analysis (FMEA)
Identify ...
critical process characteristics and
variables
Key
Prioritize ...
Activities process deficiencies in support of
downstream improvement actions
Focus ...
on prevention of process problems
FMEA Types and Uses
Process Control
• Improvement of an existing • Before developing control plans
process, product, or service for a new or modified process
Design
• Design or redesign of a • New application of an
process, product, or service existing process, product, or
service
Defect
• Failure analysis of an existing
process, product, or service with
focus on the cost of defects
BoK OBJECTIVE
IV.A.4 Innovation and

Creativity Tools
Use various techniques and exercises

for creative decision-making and
problem-solving, including
brainstorming, mind mapping, lateral
thinking, critical thinking, the 5 whys,
and design for six sigma (DFSS).
(Apply)
Innovation and Creativity Tools
Brainstorming
– Knowledge pooling to create idea waves
Mind Mapping
– information intake, processing, remembering,
and connecting new ideas to an existing idea
Lateral Thinking
– Specific methods to change concepts and
perceptions for idea generation
Critical Thinking
– Identify question, form hypothesis, gather data,
evaluate hypothesis, draw conclusion
Innovation and Creativity Tools
5 Whys
– Ask ‘why’ 5 times to get to the root cause
– most useful when problems involve human
factors or interactions.
– shows the relationship between different root causes of
the same problem.
Design for Six Sigma (DFSS)

– prevent defects by transforming customer wants
and perceptions
– Customer focus
5 Whys Exercise
Think of a problem or mishap or error that
has happened in the past 7 days:
At work
At home
While travelling via airlines
On a project
Getting a task done
In communication with
yourself and others
Reflection
Which quality tools do you currently use in

your line of work?
How do you use the tools?
Which tools would you

like to learn more about?
BoK OBJECTIVE
IV.A.5 Cost of Quality (COQ)

Define and distinguish between
prevention, appraisal, internal, and
external failure cost categories and
evaluate the impact that changes in one
category will have on the others.
(Evaluate)
Cost of Quality
Quality costs refer to:
incurred by an organization to attain
Those expenditures
and ensure specified quality levels
The losses incurred when satisfactory quality is not achieved
Quality costs are the total of the costs incurred by:

Investing in the prevention of non-conformances to
requirements.
Appraising a product or service for conformance to
requirements and failure (internal or external) to
meet requirements.
Cost of Quality
Appraisal Prevention Internal External

costs costs failure costs failure costs
BoK OBJECTIVE
IV.B.1 Process Goals
Describe how process goals are

established, monitored, and measured
and evaluate their impact on product or
service quality. (Evaluate)
Process Goals
1 Define the process.
2 Develop process goals and objectives.
3 Measure the process against established objectives.
4 Make improvements.
BoK OBJECTIVE
IV.B.2. Process Analysis
Use various tools to analyze a process

and evaluate its effectiveness on the
basis of procedures, work instructions,
and other documents. Evaluate the
process to identify and relieve
bottlenecks, increase capacity, improve
throughput, reduce cycle time, and
eliminate waste. (Evaluate)
Process Analysis
Identifying an organization’s business processes
✓Brainstorm
✓Map elements
✓Rank and prioritize processes
Analyzing the processes

✓Identify process elements (SIPOC)
SIPOC
Clients files Memos Clients

Mfr’s Reports
Audit client sales Generate credit Distribute credit

against price files memos and reports memos and report
Process Documentation
Commonly achieved through the use of

flowcharts
Written procedures define responsibilities.
Work instructions results in an output.
BoK OBJECTIVE
IV.B.3 Lean Tools
Identify and use lean tools such as 5S,

just-in-time (JIT), kanban, value stream
mapping (VSM), quick-changeover
(single-minute exchange of die),
poke-yoke, kaizen, standard work
(training within industry), and productivity
(OEE). (Apply)
Lean Tools
Lean is a collection of tools, techniques, and
processes to reduce waste through continuous
improvement.
In general, by reducing waste, lean reduces
• costs
• cycle times
• customer dissatisfaction
Lean Tools
Cycle-time reduction
Cycle time = total amount of time required to complete a process,
from first step to the last (define process, list activities, flowchart
process, list elapsed time for each activity, identify non-value-
added tasks, eliminate all possible non-value-added tasks)
5S (workplace organization)
• Seiri (Sort): Eliminate the unnecessary
• Seiton (Set in order): Organize what remains
• Seiso (Shine): Clean work area
• Seiketsu (Standardize): Set regular cleaning and maintenance
schedules
• Shitsuke (Self-discipline): Make 5S a way of life
(sustain)
Kanban
Just-in-time (JIT)
JIT is a material requirement planning system that
provides for the delivery of material or product at the exact
time and place where the material or product will be used
(demand pull, manufacturing processes, reduced setup
and lead times)
Kanban
• Works in concert with JIT
• Visual signal to restock
Value Stream Mapping
Visually maps the material and information flow. Includes the physical
mapping of the “current state” with focus on getting to “future state.”
SMED
Single minute exchange of dies is a key strategy to
decrease overproduction and excess inventory.
The time between the last good piece from

one run and the first good piece from the next
run is considered to be the changeover time.
Lean Tools
• Poke-Yoke
– Eliminate opportunity for error, detect error potential, prevent error
• Kaizen
– Continual, incremental improvement
– Kaizen blitz – rapid change
• Standard work (training within industry)
– Rapidly teach people to do their jobs in industry, by industry; three
programs
• Job Instruction (teach supervisors how to train)
• Job Methods (teach supervisors how to break jobs into operations)
• Job Relations (teach supervisors how to work with others)
• Overall equipment effectiveness (OEE) metric
– Multiplying availability, performance, and quality
– Allows an organization to assess how well a machine or operation is
performing
BoK OBJECTIVE
IV.B.4 Theory of Constraints (TOC)

Define key concepts of TOC: systems
as chains, local vs. system
optimization, physical vs. policy
constraints, undesirable effects vs.
core problems, and solution
deterioration. Classify constraints in
terms of resources and expectations as
defined by measures of inventory, and
operating expense. (Understand)
Theory of Constraints
Systems as chains
Weakest link
Local vs. system optimization

System optimum is not the sum of the local optima
Physical vs. Policy constraints

Policy constraints elimination means higher system improvement
Undesirable effects vs. core problems

UDEs are manifestations of core problems
Solution deterioration
Solutions that eliminate individual UDEs ignores core problem; to
solve, eliminate all UDEs
TOC - Goldratt’s Principles*:
01 02
Identify Decide
05
Go Back G.P 03
Subordinate
04
Evaluate
*Goldratt’s Theory of Constraints, Eliyahu M. Goldratt, Author
Theory of Constraints
TOC tools:
• Current reality tree
• Future reality tree
• Prerequisite tree
• Transition tree
• Conflict resolution diagram
Flow of money:
System
$ $ $
Throughput Inventory Operating

Money Money tied up inside Expense
coming in Money going out
BoK OBJECTIVE
IV.C.1 Basic Statistical Use
Use statistical techniques to identify

when, what, and how to measure
projects and processes. Describe how
metrics and data gathering methods
affect resources and vice-versa. (Apply)
Basic Statistical Use
Techniques/tools for measuring processes:
– Goal – Question – Metric (GQM)
• Conceptual level (goal)
• Operational level (question)
• Quantitative level (metric)
Measuring independent process variables; Critical-
to-quality (CTQ): Inputs (x), Outputs (y)
Measuring projects:
• Planning and management measures
• Project deliverables measures
Basic Statistical Use
• Establishing process measures
• Techniques/tools for measuring projects
• Effect of metrics and measuring on people:
– What data you need
– Who will supply data
– How data is transformed
– How information is used
– How information is communicated
BoK OBJECTIVE
IV.C.2 Sampling
Define and describe basic sampling
techniques such as random and
stratified. Identify when and why
sampling is an appropriate technique to
use. (Understand)
Sampling Techniques
The sampling process will depend on the purpose, desired
statistical conﬁdence, and economics.
• Random sampling: Equal opportunity for each sample to
be selected
• Stratified sampling: Sample from particular portion of the
population
• Systematic sampling: Where every nth item is selected
• Cluster sampling: Random sample is taken from within a
selected subgroup
• Best judgment sampling: Opinion determines the best
location and characteristics of the sample group
Sampling Techniques
• Acceptance sampling
– Sampling a batch of material to evaluate the level of
nonconformance relative to a speciﬁed quality level
• Risks in sampling
– (1) Alpha/producer’s risk
– (2) Beta/consumer’s risk
Actual Lot Quality
Good Bad
Decision Made
Lot 1- 
Accepted Producer’s Type 2 Error
confidence Consumer’s Risk
 1-
Lot Type 1 Error Consumer’s
Rejected Producer’s Risk confidence
BoK OBJECTIVE
IV.C.3 Statistical Analysis

Calculate basic statistics: measures of
central tendency (mean, median,
mode), and measures of dispersion
(range, standard deviation, and
variance). Identify basic distribution
types (normal, bimodal, skewed) and
evaluate run charts, statistical process
control (SPC) reports, and other control
charts to make data-based decisions.
(Evaluate)
Central Tendency
Measures of central tendency:
• Mean: mathematical average of the numbers in a data
set.
• Median: middle number of the data set.
• Mode: most frequently occurring value in a data set.
When analyzing data, different measures of central tendency

provide differing answers, and knowing which measure is
most appropriate in a given scenario will allow you to provide
an accurate interpretation of the data set.
Measures of Dispersion
The term "Measure of Dispersion" refers to the amount of
variation or spread of a set of data within a population.
Common terms include:

Range - the difference between the maximum and minimum
values in a data sample
Range (R) = Xmax - Xmin
Standard deviation - standard measure of deviation from
the population or sample mean.
Variance - the square of the standard deviation (limited

application).
Distribution Types
Probability Distribution: mathematical formula that
relates the values of characteristics with their probability of
occurrence in a population.
• Discrete distribution
• Continuous distribution
Data-Based Decision Making
Run Charts
• Trend analysis
• Data shifts
• Frequency and magnitude of data variation
Regression
• Allows people to predict one variable from one or more other
variables.
Correlation
• measure of the relationship between two sets of numbers or
variables.
Statistical Process Control (SPC)
• measuring and analyzing the variation in processes
Statistical Process Control - SPC
The application of statistical techniques for measuring and
analyzing process variation for both variables and attributes
Variables-type control charts:
• x-bar and R chart
• x-bar and s chart
• CUSUM chart
Attributes-type control charts:

• np-chart (defective units)
• p-chart (fraction of units
defective)
• c-chart (number of defects)
• u-chart (number of defects
per unit)
BoK OBJECTIVE
IV.C.4 Measurement
System Analysis
Understand basic measurement terms

such as accuracy, precision, bias,
linearity. Understand the difference
between repeatability and
reproducibility in gauge R&R studies.
(Understand)
Measurement System Analysis
Accuracy: The degree to which a device ‘agrees’ with the
‘true’ value according to a standard
Calibration: Maintaining measurement system performance

usually by comparison to a standard
Bias: A difference between the output of the measurement

method and the true value
Linearity: Equal bias (hopefully small) across the operating

range
Measurement System Analysis
Precision is the aspect of
measurement that addresses
repeatability or consistency when an
identical item is measured multiple
times.
Repeatability is the amount of

variation in a single gage and is
determined by having the same operator
measure the same thing with the same
gage multiple times.
Reproducibility is the amount of

variation between operators. This is
determined by having different
operators measure the same thing
multiple times.
Accuracy and Precision
Accurate and precise Not accurate, but precise
Not accurate and not precise Accurate, but not precise
BoK OBJECTIVE
IV.C.5 Trend
and Pattern Analysis
Interpret graphs and charts to identify

cyclical, seasonal, and environmental
data trends. Evaluate control chart
patterns to determine shifts and other
trend indicators in a process.
(Evaluate)
Trend and Pattern Analysis
Trend analysis: look at data over time to find patterns.
Long-range trend analysis
• Can occur regularly over weeks, months, or years.
Short-range trend analysis

• Detail oriented. Changes quickly.
Patterns:
• Cyclical: output to gradually increase (or decrease), then
gradually return to approximately the original level.
• Shifts: an abrupt change in an important variable that
may cause an output measure to suddenly increase or
decrease.
Trend and Pattern Analysis
Control Charts - used to evaluate trends and patterns
Run Charts - allow the observer to understand, over time,
the cycles, trends, and shifts that have occurred in a
process.
BoK OBJECTIVE
IV.C.6 Process Variation
Analyze data to distinguish between

common and special cause variation.
(Analyze)
Theory of Variation
Factors affecting variation:
– People
– Machinery
– Environment
– Material
– Measurement
– Methods
Common causes (inherent)
Special causes (chance or assignable causes)
BoK OBJECTIVE
IV.C.7 Process Capability
Recognize process capability (Cp and

Cpk) and performance indices (Pp and
Ppk). (Understand)
Process Capability
Definition: Range within which a process is normally able to
operate given the inherent variation due to design and
selection of materials, equipment, people, and process steps
Stability or statistical control is an essential requirement
to assess process capability.
Capability indices can be used to determine whether to:
• Do nothing
• Change the specs
• Center the process
• Reduce variability
• Accept the losses
Process Capability Indices
• Cp measures the spread of the specifications relative to
the six sigma spread in the process.
– Cp does not take into account where the process
mean is located relative to the specifications.
𝑈𝑝𝑝𝑒𝑟 𝑠𝑝𝑒𝑐 − 𝐿𝑜𝑤𝑒𝑟 𝑠𝑝𝑒𝑐
𝐶𝑝 =
6𝜎
• Cpk takes process centering into consideration and it

represents shortest distance for the specification limit
nearest to the process average.
|𝑈𝑝𝑝𝑒𝑟 𝑠𝑝𝑒𝑐 − 𝐴𝑣𝑒𝑟𝑎𝑔𝑒| |𝐴𝑣𝑒𝑟𝑎𝑔𝑒 − 𝐿𝑜𝑤𝑒𝑟 𝑆𝑝𝑒𝑐|
𝐶𝑝𝑘 = 𝑜𝑟
3𝜎 3𝜎
(Whichever is smaller)
Performance Capability Indices
• Pp – Indicator of past process performance
• Ppk – Potential process capability
Where s is the usual sample standard deviation…

𝑈𝑝𝑝𝑒𝑟 𝑠𝑝𝑒𝑐 −𝐿𝑜𝑤𝑒𝑟 𝑠𝑝𝑒𝑐
P𝑝 =
6𝑠
|𝑈𝑝𝑝𝑒𝑟 𝑠𝑝𝑒𝑐 −𝐴𝑣𝑒𝑟𝑎𝑔𝑒| |𝐴𝑣𝑒𝑟𝑎𝑔𝑒 −𝐿𝑜𝑤𝑒𝑟 𝑆𝑝𝑒𝑐|

P𝑝𝑘 = 𝑜𝑟
3𝑠 3𝑠
(Whichever is smaller)
BoK OBJECTIVE
IV.C.8 Reliability Terminology

Define and describe basic reliability
measures such as infant mortality, end
of life (e.g. bathtub curve), mean time
between failures (MTBF) and mean
time to repair (MTTR). Understand the
value of estimating reliability to meet
requirements or specifications.
NOTE: Reliability calculations will not
be tested. (Understand)
Reliability and Validity
Reliability:
(precision, repeatability)
Validity: (accuracy)
• Face
• Criterion-related
• Construct-related
• Content-related
Infant Mortality and End-of-Life
Infant Mortality
Premature, early product failures that occur prior to the
product entering service
End-of-Life (Bathtub Curve)
Maps product infant mortality failures, rate of product failure
during normal use, and rate of failures as the product wears
Reliability
Failure
Rate
Infant Mortality Normal Life Wear Out

MTBF and MTTR
Mean Time Between Failures
(MTBF) is the expected time a process or machine can
expect to be operating between failures.
Mean Time to Repair

(MTTR) is the mean or average
time required to repair a failure.
Quality Management Tools
Problem solving tools
Process management
Measurement: Assessments and Metrics
Reflection
What are two ways you can use or apply

something we’ve covered in Module IV?
What questions do you have

from Module IV?

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CMQ-OE Certification Preparation

IV.A.1 The Seven

Select, interpret, and evaluate output

Each tool provides a means for organizing and

Audit files Credit

Damaged Defective Missing

IV.A.2. Basic Management

Affinity Diagram Tree Diagram

Lean Safety Design

Volume Injuries Machines Pickup

useful when facts or

Process Decision used to improve the

shows the presence and strength

Operators are Quality of

Identify Identify info

Gain Consensus Coordinate with

Select, interpret and evaluate tools

Identify the Search out the Identify

Follow up to Select and

Problem Analysis (Why did it happen?

Potential Problem Analysis

IV.A.4 Innovation and

Use various techniques and exercises

Design for Six Sigma (DFSS)

Which quality tools do you currently use in

How do you use the tools?

Which tools would you

IV.A.5 Cost of Quality (COQ)

Quality costs are the total of the costs incurred by:

Appraisal Prevention Internal External

IV.B.1 Process Goals

Describe how process goals are

1 Define the process.

2 Develop process goals and objectives.

3 Measure the process against established objectives.

IV.B.2. Process Analysis

Use various tools to analyze a process

Analyzing the processes

Clients files Memos Clients

Audit client sales Generate credit Distribute credit

Commonly achieved through the use of

Written procedures define responsibilities.

Work instructions results in an output.

IV.B.3 Lean Tools

Identify and use lean tools such as 5S,

The time between the last good piece from

IV.B.4 Theory of Constraints (TOC)

Local vs. system optimization

Physical vs. Policy constraints

Undesirable effects vs. core problems

*Goldratt’s Theory of Constraints, Eliyahu M. Goldratt, Author

Throughput Inventory Operating

IV.C.1 Basic Statistical Use

Use statistical techniques to identify

IV.C.3 Statistical Analysis

When analyzing data, different measures of central tendency

Common terms include:

Variance - the square of the standard deviation (limited

Attributes-type control charts:

Understand basic measurement terms

Calibration: Maintaining measurement system performance

Bias: A difference between the output of the measurement

Linearity: Equal bias (hopefully small) across the operating