Pareto Analysis

A Pareto diagram is a special type of histogram that helps us to identify and prioritize problem areas. The construction of a Pareto diagram may involve data collected from data figures, maintenance data, repair data, parts scrap rates, or other sources. By identifying types of nonconformity from any of these data sources, the Pareto diagram directs attention to the most frequently occurring element.

There are three uses and types of Pareto analysis. The basic Pareto analysis identifies the vital few contributors that account for most quality problems in any system. The comparative Pareto analysis focuses on any number of program options or actions. The

FIGURE 20-14. Identify corrective action.

weighted Pareto analysis gives a measure of significance to factors that may not appear significant at first—such additional factors as cost, time, and criticality.

The basic Pareto analysis chart provides an evaluation of the most frequent occurrences for any given data set. By applying the Pareto analysis steps to the material receipt and inspection process described in Figure 20-16, we can produce the basic Pareto analysis demonstrated in Figure 20-17. This basic Pareto analysis quantifies and graphs the frequency of occurrence for material receipt and inspection and further identifies the most significant, based on frequency.

A review of this basic Pareto analysis for frequency of occurrences indicates that supplier A is experiencing the most rejections with 38 percent of all the failures.

Pareto analysis diagrams are also used to determine the effect of corrective action, or to analyze the difference between two or more processes and methods. Figure 20-18

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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