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Most of the loss will be dueto a very few types ofdefects, and these defectscan attribute to a very smallnumber of causes.
Pareto principleThe Pareto Principle, also known as the 80/20 RuleFor many events, 80% of the effects come from 20% of thecauses.
How to make Pareto Diagram ?Step 1: Decide what problem are to be investigated and how tocollect the data.1. Decide what kind of problems you want to investigate.2. Decide what data will be necessary and how to classify them.3. Determine the method of collecting the data and the periodduring which it is to be collected.
Step 2 : Design a data tally sheet listing the items,with space to record theirs totals.
Step 3: Fill out. the tally sheet and calculate thetotals.Step 4: Make a pareto data sheet listing theitems: Individual totals Cumulative totals Percentage of overall total Cumulative percentages
Step 5: Arrange the item in the order of quantity, andfill out the data sheet.Step 6: Draw two verticle axis and a horizontal axis.Step 7: Construct a bar diagram.Step 8: Draw the cumulative curve (pareto curve).Step 9: Write any necessary item on the diagram.
Pareto diagrams are of two types. Pareto Diagram by phenomena.a) Qualityb) Costc) Deliveryd) Safety Pareto Diagram by causes.a) Operatorb) Machinec) Raw materiald) Operation method