Quality - Pareto

Chart
What is Quality

•Quality has been universally understood as “Fitness

for use”.

•To industries quality means “Customer satisfaction”.

•Quality is also described as products conforming

to requirements.
What is Quality – An Example

Consider a “Lead Pencil”. The basic characteristics required are

that

 It should write smoothly

 It should not tear the paper.

 It should have a good appearance

 The lead should have optimum strength

 It should hold correctly to the pocket

 More than everything, it should not be expensive.

Quality Check Tools

• Pareto
• Check Sheets
• Graphs (line graphs, Bar graphs, pie charts)

• Ishikawa Diagram
• Scatter Diagram

• Control Charts
• Histogram
 FOUNDER OF PARETO

• Pareto analysis was found/Created by

Vilfredo Pareto – Italian economist

• Vilfredo Pareto studied the

distributions of wealth in different
countries and concluded that a fairly
consistent minority-about 20 per cent-
of people controlled the large majority-
about 80 per cent- of a society’s wealth.
Vilfredo Pareto,
1848-1923 •The same distribution has been
observed in other areas and has been
termed as the ‘Pareto Effect’.
What is a Pareto?

•The Pareto Principle states that only a "vital few"

factors are responsible for producing most of the
problems.

•The Pareto Principle (80/20 rule)

•Identifies vital few from trivial many

•Helps to focus by prioritization principle

What Questions The Pareto Chart Answers

•What are the largest issues facing our

team or business?

•What 20% of sources are causing 80%

of the problems (80/20 Rule)?

•Where should we focus our efforts to

achieve the greatest improvements?
 Tool for Prioritization

Example

Error Classification:

Error Category No. of Errors

Spell Error 25
Additional 17
Procedural Error 15
Missing 13
Misplaced 3
Total 73
 Tool for Prioritization

Steps
• Arrange activities in descending order
• Take Cumulative total
• Calculate % of total & cumulative percentage
Error Category No. of Errors Cumulative Cumulative %
Spell Error 25 25 34
Additional 17 42 58
Procedural Error 15 57 78
Missing 13 70 96
Misplaced 3 73 100
Total 73

• Cells shaded in yellow help confirmation of

calculation
 Tool for Prioritization

Pareto chart

PARETO CHART

100
60 80
60
% OF ERRORS

40
40
20
20
0 0
Spell Error Additional P rocedural Error Missing M isplaced

ERROR CATEGORY
Pareto chart – A Video Clip

Double click the next slide

 Tool for Prioritization

Exercise
Draw a Pareto chart for the following

Causes # of Occurrences
Instruction not Updated
10
Image not Clear
45
Image Clear/Oversight
10
Tool Error
5
Refresher not given
10
New Instance
4
Hardware Issues
2
Next Training

• September 10, 2005

• Five Why Concept

• e-Mail Etiquettes
ICE BREAKER
THANK YOU