Pareto Diagram presentation

7/28/2019 Pareto Diagram presentation

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PREPARED BY: NORZIHAN NABILAH BINTI ABU BAKARSUZIELA BTE ASMANSYA'ARI BIN OTHMAN

PREPARED FOR: ZULFAIRUL BIN ZAKARIAHCLASS OF EC2206Q


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Pareto Diagram / Pareto Analysis is a statistical technique indecision making.

It is used the selection number of tasks that produce

significant overall effect.

Pareto Diagram use Pareto Principle (known as the 80/20rule)

It is mean by doing 20% of the work you can generate 80%

of the benefit of doing the whole job.

In terms of quality improvement, a large majority ofproblems (80%) are produced by a few key causes (20%)


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Separate the few major problems from the manypossible problems so we can focus on improvement

efforts.

Arrange data according to priority or importance

Determine which problems are most importantusing data, not perceptions

A Pareto Chart has the following objectives:


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The Pareto Diagram named after Vilfredo Pareto, a 19th-centuryItalian economist.

He conducted a study in Europe in the early 1900s on wealth and

poverty.

It is the law of the "significant few versus the trivial many.

The Pareto Principle is a rule-of-thumb, which states that: 20% of

the problems have 80% of the impact.

The 20 percent of the problems are the vital few and theremaining problems are the trivial many.


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From the quality point of view, this diagram was introduced by theprofessor J. M. Juran, as an instrument for the classification of the problemsof quality:

1904 - 2008Management Consultant

and Engineer

A Pareto Diagram is a good tool to use whenthe process investigated produces data that arebroken down into categories and you can countthe number of times each category occurs.


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A Pareto diagram puts data in a hierarchical order, whichallows the most significant problems to be corrected first

The Pareto analysis technique is used primarily to identify andevaluate nonconformities, although it can summarize all typesof data.

Common examples: 80% of all car accidents are caused by 20% of drivers

80% of global wealth is held by 20% of the world population 80% of the work on a project is done by 20% of team members

80% of healthcare is used by only 20% of patients


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Pareto Diagram helps teams focus on the small numberof really important problems or causes of problems.

This tool is useful in establishing priorities by showing which

are the most critical problems to be tackled or causesto be addressed.

Comparing Pareto diagram of a given situation over timecan also determine whether an implemented solutionreduced the relative frequency or cost of that problem orcause


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The chart is similar to the histogram or bar chart, except that the bars

are arranged in decreasing order from left to right along the abscissa.

Each bar represents only a category of faults, arranged in a decreasing

way, from left to the right, according to their importance.

1.Record the raw data

List each category and its associated data count


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2. Order the data

3. Label the left-handed vertical axis

Prepare an analysis sheet, putting the categories in order

and placing the one with the largest count first.

Make sure the labels are spaced in equal intervals from 0 toa round number equal to or just larger than the total of all

counts.


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5. Plot a bar for each category

6. Determine the percentage that each categoryrepresents

4. Label the horizontal axis

Make the widths of all the bars the same and label the categories from largest

to smallest. An other category can be used to last to capture several

smaller sets of data.

The height of each bar should equal the count for that

category. The widths of the bars should be identical.

To do this, total the counts (for our example,

this would be 102). Next, determine the

percentage for each category.


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8. Add a cumulative line

Label the right axis from 0% to 100% and

line up the 100% with the grand total on

the left axis. For each category, put a dot

as high as the cumulative total and in linewith the right edge of the categorys bar.

Connect all the dots with a straight

lines.

7. Find the cumulative percentage

Each categorys cumulative percentage is the percentage for that

category added to the percentage of the category of the larger

category before it


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9. Analyze the diagram

Look for a break point on the cumulative percent graph. It can be

identified by a marked change in the slope of the graph. This separates

the significant few from the trivial many


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Histogram

Pareto Chart

A histogram is a type of bar chart showinga distribution of variables.A histogram represents each attribute orcharacteristic as a column and the

frequency of each attribute orcharacteristic occurring as the height ofthe column.

A Pareto chart is a specific type of

histogram that ranks causes or issues bytheir overall influence. A Pareto chartassists in prioritizing corrective actions asthe issues with the greatest impact aredisplayed in order. In addition, thePareto chart includes an arcrepresenting the cumulative

percentage of the causes


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A histogram may be used to represent the number of students

who scored between a certain score range, such as 0 to 20%,

20 to 40%, etc.

A Pareto chart may be used to analyze the causes of customer

dissatisfaction. The causes would be ordered by frequency of

occurring, allowing the team to focus on those issues with the

biggest impact on customer satisfaction.

A histogram is a bar graph that illustrates the frequency of an event

occurring using the height of the bar as an indicator.

A Pareto chart is a special type of histogram that represents the Pareto

philosophy (the 80/20 rule) through displaying the events by order of

impact.

Example

Summary


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Solves efficiently a problem by the identification andthe hierarchisation, according to their importance, ofthe main causes of the faults.

Sets the priorities for many practical applications.Some examples are: process improvement efforts forincreased unit readiness, customer needs, suppliers,investment opportunities.

Shows where to focus efforts.

Allows better use of limited resources.


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The Pareto chart is one of the seven basic tools ofquality control.

Pareto analysis provides the mechanism to controland direct effort by fact, not by emotion.

It helps to clearly establish top priorities and to

identify both profitable and unprofitable targets.

Maximize research and product development time

Documents

Pareto Diagram presentation