ANALYTICS TRAINING MODULES

SERIES-B:
BASIC MANAGEMENT TOOLS

Module B-04 : TREE DIAGRAM

Doc. No. B-04.00.20210308
Revision 00; 8th March 2021
Authors: Pankaj Lochan / Soumeek Das

For further clarifications, write to

[email protected] / [email protected] © Jindal Steel & Power Ltd. All rights reserved. 1
ANALYTICS TRAINING MODULES
Series A Series C Series D Series F
Basic Problem Solving Tools Management Systems Productivity & Efficiency Tools Advanced Statistical Tools
A-01 Flow Charts C-01 Quality Mgmt. Basics D-01 Theory of Constraints F-01 Sampling & Distribution
A-02 Cause & Effects Diagram C-02 Basic Statistics D-02 Capacity & Bottlenecks F-02 Hypothesis Testing
A-03 Stratification C-03 Statistical Process Control D-03 Value Stream Mapping (VSM) F-03 Regression
A-04 Scatter Diagram C-04 KPI Drill Down D-04 Time & Motion Study F-04 Basics of DoE
A-05 Control Charts C-05 KPI Benchmarking D-05 SMED F-05 Factorial DoE
A-06 Check Sheets C-06 KPI Target Setting D-06 Wrench Time Analysis F-06 Principal Component Analysis
A-07 Histogram C-07 Strategic Analysis Tools-1 D-07 Queuing Theory F-07 Cluster Analysis
A-08 Pareto Charts C-08 Strategic Analysis Tools-2 D-08 Inventory Management F-08 Conjoint Analysis
A-09 Graphs C-09 Strategy Management
D-09 Linear Programming Problem F-09 Discriminant Analysis
C-10 Daily Mgmt. in Operations
D-10 Game Theory F-10 Factor Analysis
C-11 Daily Mgmt. in Maint.-1
Series B D-11 OEE F-11 Response Surface Method
C-12 Daily Mgmt. in Maint.-2
Basic Management Tools D-12 PERT & CPM F-12 Taguchi DoE
C-13 Daily Mgmt. in Services
C-14 Cross Functional Mgmt. F-13 Weibull Analysis
B-01 Brainstorming Series E
B-02 Affinity Diagram C-15 Quality Assurance Basics
C-16 MSA Decision-making Tools
B-03 Arrow Diagram
C-17 PFD, FMEA, Control Plan E-01 Quality Function Deployment
B-04 Tree Diagram
C-18 Improvement Fundamentals E-02 Fault Tree Analysis
B-05 PDPC
C-19 5S E-03 AHP & Paired Analysis
B-06 Matrix Diagram
C-20 Quality Circles E-04 Pugh Matrix
B-07 Matrix Data Analysis
C-21 QC Story Approach
B-08 Relation Diagram E-05 Time Motion Series
C-22 Kaizen, OPL, Poka Yoke

2
TREE DIAGRAM: AN INTRODUCTION

 Graphical tool which breaks down broad categories

into further and finer levels of detail.
 Where could I use it?
-Planning – breaking down to next levels
-Constitution of a service or product
-Analysing a process by splitting it into sub-
processes.
 The purpose of the tree diagram is to explore ways
and means to achieve an objective, develop a list
of alternate means to reach the desired situation in
a sequential order and to present them in a visual
form.

3
HOW TO CREATE A TREE DIAGRAM

Title Procedure Guidelines.

 Defining the subject in a clear and simple Initially, the size, shape and the length
Define the statement. of the Tree diagram will not be clear,
Issue.  Reduce the statement to a short verb-object so it is advised to use A3 sheets, or
form. Excel sheets.

 Identify the ‘next level down’ components – Questions that help us identify
 What are the strategies involved to reach our components.
Identify subject objective.  What must be done to reach our
components  What are the primary means. objective?
 What are the related process?

 Drill down the components to the extend to  Consider each successive layer as
which they are measurable and controllable. ‘parent’ and ‘child’ relationships.
Drill Down  Each Component should be understood and  Each Objective level
Components. agreed upon by all concerned team mates. component(parent) should represent
the sub-level component.

4
HOW TO CREATE A TREE DIAGRAM

Title Procedure Guidelines.

• Identify Gaps in Logic. Ask the question “Does each sub-level

• Each Parent component should relate to the components represent the Parent
Identify gaps - Sub-level component. Component”
top down

Ask the questions:

• Start from the lowest level, analyze the If the lower level metrics are achieved,
diagram to check for any duplication, or gap. will I be able to reach my objectives?
Identify gaps - Check if all the lower level components
are necessary?
bottom up

5
EXAMPLES:

1. Electrostatic oiler used in Cold Roll Mill.

(Skin Pass mill)
 Electrostatic oiler is used in CRM for
spraying uniform thin layer of oil on both
sides of sheet.
 Electrostatic oiler is used in Cold compact
mill (CCM), Skin pass mill (SPM) and Re-
coiling line (RCL)
 The objective of using oiler is to prevent
coils from getting rusted till the coils reach
customer.
 When the oiler fails to perform, or when the
oiler is not working, it leads to stoppage of
line & thus leads to enormous delays and
financial loss.
6
EXAMPLES:

2. Tree diagram to increase the revenue of a company:

 All the companies worldwide have a common vision of expansion and
increasing the revenue.
 The means for increasing revenue has more than one ways, i.e.
 By expansion of existing capacity.
 Or by manufacturing products of higher quality in the existing
setup.
 A tree diagram is drawn to explain the same.
 It helps to identify all the aspects that needs to be acted upon to
achieve the vision.

7
EXAMPLES: TREE DIAGRAM TO INCREASE THE REVENUE OF A COMPANY

1. Define the Issue.

Identify ways in which the

revenue of the company can Provide discounts
2. be increased
Increase sales to
customers Cross sell

Improve Change logo

Increase Increase
Revenue Company
volume Reputation
Increase advertisements

2. Identify subject
components Enhance
Extend geography - Europe
Customer
Base Extend geography - USA
3. Drill down components
Explore technology
Reduce
Conversion
Cost Reduce waste
Change
4. Identify gaps prices
Extend the range
top down Develop
new products
Enter new markets

5. Identify gaps
bottom up

8
EXAMPLE:

3. Common causes of cracking in

concrete structures.

A firm dealing in production of cement

has received complaints regarding
cracks in structure from customer.
Cracks that appear before the concrete
has hardened are called plastic cracks.

Cracks that appear after concrete has

hardened can have a variety of causes,
and sometimes have more than one cause

Hence they have developed a tree

diagram to determine the common causes
of cracks.

9
END OF MODULE

If you can't describe what you are doing as a process, you don't know what you're doing

Thank You

10