MODULE 

II:

PLANNING TOOLS
PLANNING TOOLS

EXPLORATORY TOOLS: RECORDING TOOLS:

o Pareto Analysis o Operations Process Chart
o Flow Process Chart and
o Fishbone Analysis
Flow Process Diagram
o Pert/CPM or Network o Gang Process Chart
Diagram o Man-machine Chart
o Stream Diagnostic o Check Sheet
Diagram o Gantt Chart
EXPLORATORY TOOLS

1. PARETO ANALYSIS
– developed by Vilfredo Pareto
– a method of identifying the vital few causes
(typically 20%) that can answer most of the
(typically 80%) problems.
– a method of organizing errors, problems, or defects
to help focus problem-solving efforts.
PARETO ANALYSIS

Some examples of the 80/20 Rule applications are:

o 80% of the process defects arise from 20% of the
process issues.
o 20% of sales force produces 80% of company
revenues
o 80% delays in the schedule arise from 20% of the
possible causes of the delays.
o 80% of the customer complaints arise from 20% of
your products or services.
PARETO ANALYSIS

o In a Pareto analysis, relatively few factors generally

account for a large percentage of the total cases (e.g.
complaints, defects, problems).
o Idea is to classify the cases according to degree of
importance, and focus on the most important, leaving
the less important
PARETO DIAGRAM

 Graph that ranks data classifications in descending

order from left to right.
typ ing  m is tak e s

45
40
frequency

35
30
25
20
15
10
5
0

W RO N G  PA GE
S PELLI N G

CEN T ERI N G
PUN CT UA T I O N

PA RA GRA PH
T A BLES

N UMBERS
W RO N G

MI S S ED

# 's
mistakes
PARETO DIAGRAM
Category IS BH UW US FM S PH Misc.
Non-conformities 520 120 80 64 35 30 26 12
Cumulative 520 640 720 784 819 849 875 887
Cumulative Percent 59% 72% 81% 88% 92% 96% 99% 100%

PCB's Non-conformities

900
800
700
Frequency

600 520

Percent
500
400
300
200 120
80 64 35 30
100 26 12
0
IS BH UW US FM S PH Misc.
Type of Non-conformity

Nonconformities Cumulative Percent

The manager of the firm that produces frozen dinners had received
numerous complaints from supermarket from Chick-n-Gravy dinners. A
survey was made and results obtained are shown below:

DEFECT OBSERVED
Date Time Missing Unacceptable Improperly
Underfilled Spill/Mixed
Item Taste sealed
5/12 0900 12 11 13
5/12 1330 12 12
5/13 1000 11 13
5/13 1345 12 12
5/13 1530 12 13 11
5/14 0830 13 13
5/14 1100 11 11 12
5/14 1400 11 11
5/15 1030 13 15
5/15 1045 11 12
The Red Company, a manufacturer of plastic bottles for mineral water, just
went into commercial operation January 2009. At the start of the operation,
the company gained a large market share in bottling business because of its
relatively cheaper price. After a period of rapid growth last year, it
experienced a high volume of sales return due to significant defects in their
product. Because of this alarming problem, the QA Manager assigned one of
her Analyst to conduct a study and assess the plant’s present condition.

Customer Complaints
Defect
January February March
Burrs 6 3 6
Off-specs 10 18 22
Bubblets 1 4 2
Warp 2 5 4
Under length 11 2 7
Black spots 4 4 5

Create the Frequency Table for Defects and construct a Pareto Chart.
Identify the defect type(s) that has to be prioritized for proper solution.
EXPLORATORY TOOLS

2. CAUSE AND EFFECT DIAGRAM

o also known as “fishbone diagram”
o developed by Ishikawa in the early 1950s
o a method consists of defining an
occurrence of a typically undesirable event
or problem (effect) and then identifying
contributing factors (causes).
CAUSE AND EFFECT DIAGRAM

o the process is continued until all possible causes are

listed
o a good diagram will have several levels of bones and
will provide a very good overview of a problem and its
contributing factors
o the factors are critically analyzed in terms of their
probable contribution to the overall problem
CAUSE AND EFFECT DIAGRAM

The principal causes are typically subdivided into:

o Human/man
o Machine
o Methods
o Materials
o Environment
CAUSE AND EFFECT DIAGRAM
CAUSE AND EFFECT DIAGRAM
CAUSE AND EFFECT DIAGRAM
EXAMPLE: CAUSE AND EFFECT
DIAGRAM

Problem: Inability to meet production quota

Causes: Poor scheduling system
Bottleneck in production
Idle time of workers
High rate of absenteeism and tardiness
Data:
Production quota is 5000 units per day
Actual Output is 4000 units per day
The company losses 200 units per day due to poor scheduling
Rate of absenteeism is 5 persons per day
The output per day is 40 units/ person in 8 hours
The company losses 400 units per day due to bottleneck
The rate of idleness is 40 hours per day
 EXAMPLE: CAUSE AND EFFECT
DIAGRAM
Given the following data acquired from a certain production plant, construct a
fishbone diagram:
Losses due to poor scheduling is 200 units

Rate of operator idleness is 40 hr /day

Rate of absenteeism is 3 persons a day

Losses due to tardiness is 100 units Production Output

Output per day Model
is 50 units/person in 8 hours February
January March
SS02
Losses due to bottleneck 480
is 12.93% 310 478
Losses due to machine
DP01 trouble is 452
310 units 395 417
PB03 355 295 303
SS03 416 389 350
EXAMPLE: CAUSE AND EFFECT DIAGRAM
Given the following data acquired from a certain production plant, construct a
fishbone diagram.
Target output = 12,000 units
Plant Efficiency = 90%
Causes of the problem:
Show the equivalent no. of units per causes.
Strenuous operation 5%
Material shortage 8%
Bad battery 3%
Sensitive Material 3%
Poor plant layout 12%
Poor adjustment 1%
No oil change 5%
Lack of supervision 14%
Bad bolts 3%
Lack of training 10%
Poor alternators 7%
Poor communication 9%
Bad QC tools 12%
Poor conveyor layout 8%
EXAMPLE: CAUSE AND EFFECT DIAGRAM

Given the following data acquired from a certain production plant:

Plant operates at 85% of capacity

Actual production output is 5,950 units
There are 2 defective machines
An average of 3 workers were found absent
Losses due to poor scheduling is 10%
Each machine can produce 150 units
Output is 45 units per worker
Losses due to bottleneck is 210 units
Losses due to material shortage is 20%
Losses due to tardiness is 90 units
Compute for the number of units loss for each causes
Construct a fishbone diagram
EXAMPLE: CAUSE AND EFFECT DIAGRAM

Given the following data acquired from a certain production plant:

Plant operates at 88% of capacity
Actual production output is 7480 units
There is 1 defective machine
An average of 3 workers were found absent
Losses due to poor scheduling is 15%
Each machine can produce 130 units
Losses due to bottleneck is 114 units
Losses due to material shortage is 20%
Losses due to tardiness is 95 units
The output per day is 48 units/ person in 8 hours
The rate of idleness is 30 hours per day
Compute for the number of units loss for each causes.
EXPLORATORY TOOLS

4. PROGRAM EVALUATION & REVIEW

TECHNIQUE (PERT) DIAGRAM
o also referred to as a network diagram or
critical path
o a planning and control tool that graphically
portrays the optimum way to attain some
predetermined objective, generally in terms
of time.
PROGRAM EVALUATION & REVIEW
TECHNIQUE (PERT) DIAGRAM
o improves scheduling through cost reduction or
customer satisfaction
o events (represented by nodes) are positions in time
that show the start and completion of a particular
operation or group of operations.
o each operation or group of operations in a department
is defined as an activity and is called an arc.
arc
o each arc has an attached number representing the time
(days, weeks, months) needed to complete the activity.
o activities that utilize no time or cost, yet are necessary
to maintain a correct sequence are called dummy
activities and shown as dotted lines
PROGRAM EVALUATION & REVIEW
TECHNIQUE (PERT) DIAGRAM
EXPLORATORY TOOLS

6. STREAM DIAGNOSTIC DIAGRAM

o used to guide the diagnosis of process
deficiencies, track down the core problem issues,
and set the stage for effective changes of the
process
STREAM DIAGNOSTIC DIAGRAM

o In order to improve a process, it is important

to identify the core problems causing its
ineffective functioning
o The stream analysis approach is used for
analysis, diagnosis, and management of
process changes
STREAM DIAGNOSTIC DIAGRAM
STREAM DIAGNOSTIC DIAGRAM