Pareto Diagram

Total quality management tool

1. Pareto Diagram Presented by – Divyansh Jain- 1421002 Divyansh - 1421001 Cim,Delhi-Ncr,Gzb 1

2. history  The principle was developed by Vilfredo Pareto, an Italian economist and sociologist who conducted a study in Europe in the early 1900s on wealth and poverty. He found that wealth was concentrated in the hands of the few and poverty in the hands of the many . The principle is based on the unequal distribution of things in the universe.  Cim,Delhi-Ncr,Gzb 2

3. Pareto diagram Pareto analysis is a technique for recording and analyzing information relating to a problem or cause, which easily enables the most significant aspects to be identified . A Pareto diagram is a special form of vertical bar chart, or column chart, which allows the information to be visually displayed . This principle effectively states that the majority of errors come from only a handful of causes. Or, in ratio terms, 80 percent of the problems are linked to 20 percent of the causes. So, the point of this tool is to focus on that 20 percent that causes the problems. Cim,Delhi-Ncr,Gzb 3

4. When to Use a Pareto Chart When analyzing data about the frequency of problems or causes in a process. When there are many problems or causes and you want to focus on the most significant. When analyzing broad causes by looking at their specific components. When communicating with others about your data. Cim,Delhi-Ncr,Gzb 4

5. It shows how many customer complaints were received in each of five categories . Cim,Delhi-Ncr,Gzb 5

6. Cim,Delhi-Ncr,Gzb 6 It takes the largest category, “documents,” from previous Example , breaks it down into six categories of document-related complaints, and shows cumulative values . If all complaints cause equal distress to the customer, working on eliminating document-related complaints would have the most impact, and of those, working on quality certificates should be most fruitful.

7. Thank You Cim,Delhi-Ncr,Gzb 7