PARETO CHART

A Pareto Chart is a graph that depicts the occurrence of defects and their overall effect. Pareto charts may be used to identify the defects should be prioritized in order to achieve the greatest overall change.

Pareto Chart is divided into two components:

1. Bar Graph

2. Line Graph

Generally, bar depicts the problem or type of defect and the height of the bar represents the unit that we have to measure. The bars are arranged in descending order i.e., from tallest to shortest. Hence the bars make it easy to observe the frequency of defects. The line represents the cumulative percentage of defects.

Pareto Chart as a quality tool

The concept behind a Pareto Chart is that the few most serious flaws account for the majority of the overall problem. It is already addressed that there are two ways in which Pareto Charts can assist in recognizing the defects that have the greatest cumulative effect.

One, the first bars are often the tallest, and they represent the most common defects. The cumulative percentage line, on the other hand, shows which defects should be prioritized in order to achieve the greatest overall change.

Pareto Principle

According to the Pareto Principle, 20% of the factors are responsible for 80% of the outcomes. As a consequence, you can try to classify the 20% of defect forms that account for 80% of all defects. Although the 80/20 rule does not perfectly apply in this case, focusing on only two forms of defects (Button and Pocket) has the ability to eliminate the vast majority of defects (66 percent).

Uses of Pareto Chart

A cumulative percentage line allows you to assess each category’s added value. If there is a Pareto effect, the cumulative line rises sharply for the first few defect forms before levelling off. The cumulative percentage line makes it easier to compare categories because the bars are around the same height. Focusing on the “vital few” variables is common sense. In the field of quality management, Pareto charts assist teams in concentrating their efforts where they can have the most effect. A Pareto map shows where our efforts can yield the most change by breaking down a large problem into smaller bits. If a Pareto chart appears plain, that’s because it is. However, like a basic computer, the Pareto chart’s simplicity makes it applicable to a wide variety of scenarios, both inside and outside of quality assurance.

Steps to create a Pareto Chart

1. Gather Raw Data for the problem statement

2. Tally the collected data

3. Decide the horizontal and vertical axes

4. Draw the category bars

5. Finally add the lines and cumulative counts.

When to use Pareto Chart?

• When looking at data on how often problems or triggers occur in a process,
• When there are a lot of issues or causes and you want to concentrate on the most important ones
• When examining large triggers, it’s important to look at their individual components.
• When talking to others about your data, be clear and concise.

Penned By:

Ms. SHRISTI SHARMA
Club Kaizen