FICCI CE Pareto analysis The Pareto principle is to concentrate on “vital few” rather than “trivial many” in tackling quality problems. The Pareto diagram is a tool for identifying few actually important causes for defectives which result in large proportion of defectives, instead of concentrating on large number of causes which contributes to a small proportion of the total defectives.
FICCI CE 80 : 20 A term referring to the Pareto principle, which was first defined by J.M. Juran in 1950. The principle suggests most effect come from relatively few causes; that is 80% of the effects come from 20% of the possible causes.
FICCI CE Constructing a Pareto chart A Pareto diagram is a bar chart of number of defectives with bars representing the number of defectives due to different sources arranged in descending order of their importance. A line graph of cumulative number of defectives (Ogive) is also drawn in the same chart. The causes are given along the x axis, the number of defectives are given on the left y axis and the cumulative %defectives is given along the right y axis.
FICCI CE Constructing a Pareto chart Data on defective cords S No. Source of defectives No. of Percentage defectives defectives 1 Wrong Ply TPM 75 25 2 Plyless Feeding 150 50 3 Single end 30 10 4 Wrong Cable TPM 45 15 Total 300 100
FICCI CE Arranging data in descending order Data on defective cords S No. Source of defectives No. of Percentage Cumulative defectives defectives % defectives 1 Plyless Feeding 150 50 50 2 Wrong Ply TPM 75 25 75 3 Wrong Cable TPM 45 15 90 4 Single end 30 10 100 Total 300 100
FICCI CE Pareto analysis of defective cords 300 100% 250 80% 200 60% 150 40% 100 50 20% 0 0% Plyless Wrong ply Wrong Single feeding TPM cable TPM end