Pareto Diagram

Provided by: Abdul Kareem H. Al Saqqa

Supervised by : Pr. Mohammed Al Azzawi

 INTRODUCTION
The Pareto diagram is a graphical
overview of the process problems, in
ranking order of the most frequent,
down to the least frequent, in
descending order from left to right.
Thus, the Pareto diagram illustrates the
frequency of fault types. Using a
Pareto, you can decide which fault is
the most serious or most frequent
offender.
• The basic underlying rule behind Pareto's
law is that in almost every case, 80% of the
total problems incurred are caused by 20% of
the problem cause types; such as people,
machines, parts, processes, and other
factors related to the production of the
product. Therefore, by concentrating on the
major problems first, you can eliminate the
majority of your problems. The few items that
have the largest amount of occurrence is
your more frequent problem, than are the
many items that only happen once in a while.
This is called the "vital few over the trivial
many" rule. Quite often, once you cure
several of the "big hitters" you also eliminate
some of the smaller problems at the same
time.
• So then, what exactly is a Pareto diagram? The
Pareto prioritizes problem areas. Sometimes a
quality problem is so cluttered with so many smaller
problems, it is difficult to know just where to begin
the solving process. Let's take an example. Below is
a table from a manufacturing process that charted all
of their quality problems. While the original defect
chart listed many problems at various stages of the
process, the overall problems were grouped into five
main process areas. In the left column is the name of
the process where the defects occur. In the next
column is the amount of defects recorded from their
daily check sheets, recorded during a one week
period. In the third column is the percent of
defectives from the overall production (N = 2165). In
the fourth and final column, is the percent of the
total defects. That is, for example, of all the defects
recorded (416), poor Caulking is 47.6% of the entire
problem. It should be obvious then, where the
primary problem is and what should be focused
upon first.
EXAMPLE
From the chart above (figure 1), you can
now create a Pareto chart in which you
can graphically display the quality
problems. There is special software on
the market that makes Pareto diagrams,
however, an Excel bar chart will
basically create the same display. The
below bar chart reflects the above
information charted in Excel.
• The left vertical axis (border) shows the number of defects for
each defective category, and the right vertical axis shows the
percentage of each defect of the total defects. The horizontal axis
(bottom) lists the defective items starting with the most frequent
one on the left (Caulking), progressing over to the least frequent
occurrence on the right side (Torque). Therefore, the Pareto
diagram visually indicates which problem should be solved first, or
in this case, the Caulking problem. With this bar graph, it is easier
to see which defects are most important of all the defects that
exist. If we solve all or most of the problems in Caulking, it could
affect some of the problems observed in connecting, gapping,
fitting, and torque.
• During the "brain-storming" session (we'll cover this later), it is
wise to ask, "Does the Caulking problem have any impact on the
other problems listed?" In some cases it might. If there was proper
caulking, would part of the "Gapping" problem be eliminated?" If
there were proper caulking, would the "Torque" have a better value
and thus not be part of the defects? Sometimes your major
problems have impact on the smaller problems. Several problem
areas may all be attributed to ONE ROOT CAUSE, even though
several failure modes are observed. For this reason, it is always
wise to choose the most frequent problem first.
 How To Make A Pareto
Diagram
• STEP #1 - Determine the category classifications that
you are going to use to group your defect data by.
Use your check sheets to collect the data for the
Pareto.
• STEP #2 - Decide on the time period to be used to
record your information. One week, a month, etc. It
is best to be consistent so that you have a standard
to compare to if the data collection exercise is to be
repeated again. You can't measure results achieved
accurately without consistent measurement periods.
• STEP #3 - From the Check Sheet, total the
occurrence of each item for the period measured.
Each total will be represented by the length of a
vertical bar, much like the Pareto chart example
above.
 How To Make A Pareto
Diagram Figure 2
• STEP #4 - (It is easier
to keep your scale
accuracy correct if
you use graph
paper). Draw
horizontal and
vertical axes on
graph paper; or if no
graph paper
available,
•use a ruler to measure and draw evenly scaled
vertical and horizontal lines that meet evenly (see
figure 2).
 How To Make A Pareto
Diagram
•
STEP #5 - Make Figure 3

your scale units at

even multiples,
such as 10, 20, etc.
so as to have an
even scale system
(see figure 3).
 How To Make A Pareto
•
Diagram
STEP #6 - Draw in the
bars that correspond to
the total numbers
collected from your
Check Sheet, starting on
the far left, with the
most frequent (highest
number recorded)
defective item. It is
recommended that you
leave a gap between
each item bar for
reading clarity. Figure 4
•(Note: If you have several defective items with very

small quantities, you can group them together in a

category called "other", as long as their total is less
than the previous bar heighth). Notice the figure 4
 How To Make A Pareto
Diagram
• STEP #7 - Under the
horizontal axis (line),
label each of the bars
so that you know
which defect is
represented by which
bar.
Figure 5
STEP #8 - Draw another vertical line and label
the percentage scale in the same manner that
you did on the left side (see figure 5)
 How To Make A Pareto
Diagram
• STEP #9 - Plot a dot for each item on the graph,
starting from the left side, on or above the bar
corresponding to the related percentage of
defectives for each item. Once each dot is plotted,
use a ruler and connect the line graph from dot-to-
dot, as shown in the "Pareto example" up above.
• STEP #10 - Title the graph and briefly write the
source of the data below the graph, that describes
the data and method used to gather. Include all
pertinent facts which will define the method of
observation (for example, time period, production
line, and whether this was before or after any
modifications to the line). Recording this data on the
bottom of your chart, will help further analysis as
well as to provide a record of what was done on this
date, for consideration in future studies.
 Test Your Learning - Class
Exercise
• It is now time for you to try and make a Pareto Chart
to practice your new knowledge. Again, it is really
best if you use graph paper. We will use the
Production Defect Check Sheet from the "Check
Sheet" lesson, to build your Pareto. For your
convenience, that chart can be found at
Production Defect Check Sheet.
• From the Production Defect Check Sheet above, you
will need to total the number of occurrences (N) then
divide each individual defect by (N) to determine the
percentage of overall defects, that each defective
item represents. When you are finished, check your
answers against "Check Your Work" below.
 Test Your Learning - Class
Exercise
• There is one more important item I need to
explain to you. There are really two styles
of Pareto charts used out in the field. The
method explained above in this lesson is
the same in either form, with the exception
of the percentage line on the graph itself.
The difference is in how the graph is
represented. If you look at the Pareto
Example above, you will see that the
percentage of each defect is represented
individually, and thus the trend goes
downward from left to right.
 Test Your Learning - Class
Exercise
• The true form, or most correct form, for the Pareto
is to have your percentage curve be an
accummulation of total percentage at each bar.
That is, the total of the first defect and the total of
the second defect would be the plotted amount
above the second bar; the total of the first, second
and third, would be plotted above the third bar,
and so on. Therefore, as you went from left to
right, your curve would be getting larger until you
reached 100% of the total defects. In this way, you
can see that from items 1 - 2, or from 1 - 3, it would
represent the total percentage of those few items,
in relation to all the defects produced. So that you
can understand further, see an example.
• Hopefully, you actually did spend the
time and tried to make a Pareto chart.
The best way to understand it, is to
actually create one yourself. You Learn
Best by Doing it Yourself!!
• Your figure calculations and your
finished Pareto Chart should resemble
the final product I have prepared for
you. To check your final product.
Your calculations should be
:as follows
 Your completed pareto chart
should look much like the one
:below