The tool is commonly used within project management and allows large numbers of ideas to be sorted into groups for review and analysis.
The affinity diagram was devised by Jiro Kawakita in the 1960s and is sometimes referred to as the KJ Method.
Process
Record each idea on cards or notes
Look for ideas that seem to be related
Sort cards into groups until all cards have been used.
Once the cards have been sorted into groups the team may sort large clusters into subgroups for easier management and analysis. Once completed, the affinity diagram may be used to create a cause and effect diagram.
Source:http://en.wikipedia.org/wiki/Affinity_diagram