Pareto Chart - Zam EMQM5103 - Project Quality Management

8/7/2019 Pareto Chart - Zam EMQM5103 - Project Quality Management

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PRESENTATION BY;

MOHD. NORIZAM MD. SALLEH

IC NO: 670703-01-6045

STUDENT ID:CGS00534317

LECTURER;DR HARIKRISHNAN KANTHEN

EMQM 5103

- Pareto Chart


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INTRODUCTION

In 1879, the famous Italian economist

Vilfredo Federico Damaso Pareto, noticedthrough studies that 80% of Italys wealthwas controlled by 20% of the population.He is also an engineer, sociologist andphilosopher

Subsequently, people in various disciplinesand professions noticed that the same80/20 rules can be applied in a broader

way, to a wide range of phenomena. Dr.Joseph Juran then generalized this conceptto many fields. He used the term vital fewand trival many.
http://en.wikipedia.org/wiki/Engineerhttp://en.wikipedia.org/wiki/Sociologisthttp://en.wikipedia.org/wiki/Philosopherhttp://en.wikipedia.org/wiki/Philosopherhttp://en.wikipedia.org/wiki/Sociologisthttp://en.wikipedia.org/wiki/Engineer


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.

ITS A GREAT MANAGEMENT TOOL ..THAT

ALSO KNOWN AS FOLLOWS;

The Pareto Principle

The Law of The Vital Few

and the Trivial Many

The Power Law

Participation Inequality

The 80 20 Rule

ABC Analysis Technique


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THE PARETO PRINCIPLETHE 80 20 RULE

The

VITAL FEW


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EXAMPLES OF

PARETO PRINCIPLE / 80 20

RULE

Input Output

Products

Effect

Cause

Efforts


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ONE MONTH DOORS FAULT/ DEFECTS RECORD

Day Defects Detected Each DayWindow Discolor Handle Hinges Rough Glass Warped

1 1 3 2 7 1 4

2 2 2 3 33 2 1 4 4 1

4 2 3 3 1 1 1 1

5 1 2

6 2 2 4 1 1

8 1 1 1 3

9 1 2

10 2 3 2

11 5

12 1 1 4 4 1

13 1 4

15 2

16 2

17 2 2 1

18 1

19 6 3

20 3 2

22 2 123 3

24 1 2 1

25 2 2 3 2 1 2

26 1 2 3 4

27 2 3 2 1

29 1 2 3

30 2

315

Total 6 24 28 60 24 12 14


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CREATE THE PARETO CHART FORTHE DOOR FREQUENCY DEFECTS

The Steps =

1. Convert the Number of each faulty to

% of total Defects & calculate the

Cumulative % of Defects.

2. Create a Bar Chart that Show the % of

Individual Defects (Tallest on the Left

Descending formation) AND

3. Include the Cumulative % of the Defectsin the Chart THEN

4. Draw a line that joins the tops of each

Cumulative % Bars (That Curved Line

is the Pareto Curve

#

%


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PARETO FREQUENCY OFDEFECTS


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PARETO % DEFECTS FREQUENCYCHART

#of

Defects


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PARETO % DEFECTS FREQUENCY, CUMULATIVE %CURVE & VITAL FEW (FOR # DEFECT/FAULT) CHART.


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PARETO CHART (INCLUDESCOST)

The MOST IMPORTANT fault/defects to be

corrected cannotbe identified from the

Pareto Chart produced using the frequency

data alone!!!

Thefore we need to consider the total cost

required to eliminate each defect!!!

For Total Cost Pareto Chart - same process

will be applied.


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PARETO TOTAL COST CHART

This Diagram can display the costs of various faults/

defects, so we can focus our attention on the most

important problems.

- To eliminate the most expensive faults.

ASSUMEthe following costs are the cost to repair each

type of defect;


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COMPARISON OF COST OF EACHDEFECT & DEFECT FREQUENCY %


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FAULTS

PARETO CHART TOTAL COSTS %


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PARETO CHART - TOTAL COSTS %DEFECTS

PARETO % TOTAL COST DEFECTS


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PARETO % TOTAL COST DEFECTS,CUMULATIVE % CURVE & VITAL FEW (TOTALCOST) CHART


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CONCLUSION

Pareto charts are used to identify and prioritize

problems to be solved. In this case hinges, warped& glass faults need to be eliminated firstas they

are the actual vital few!!! for this case.

Eliminated them, 80% of the problem solvedPareto Chart Helps to identify priorities.

Remember the 80/20 rule states that APPROXIMATELY

80% of the problems are created by APPROXIMATELY

20% of the causes.


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THANK YOU

Pareto Chart - Zam EMQM5103 - Project Quality Management

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