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BasicTools-ParetoAnalysis

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Biostatistics
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09/29/2013

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# Pareto Analysis What it is

Pareto Analysis is used to record and analyse data relating to a problem in such a way as to highlight the most significant areas, inputs or issues. Pareto Analysis often reveals that a small number of failures are responsible for the bulk of quality costs, a phenomenon called the ‘Pareto Principle.’ This pattern is also called the ‘80/20 rule’ and shows itself in many ways. For example: • 80% of sales are generated by 20% of customers. • 80% of Quality costs are caused by 20% of the problems. • 20% of stock lines will account for 80% of the value of the stock. A Pareto diagram allows data to be displayed as a bar chart and enables the main contributors to a problem to be highlighted. As a basic Quality Improvement tool, Pareto Analysis can: • define categories of defects which cause a particular output (product, service, unit) to be defective; • count the frequency of occurrence of each defect; • display graphically as a bar chart, sorted in descending order, by frequency of defect; • use a second y axis to show the cumulative % of defects .

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Pareto Analysis v2.ppt

you may need to redefine your classifications and go back to Stage 1 or 2. depending on the availability of information.Example 2 • Recognise the 80: 20 principle but if the original Pareto is very flat be prepared to cut the defects in a different way. etc) as a bar chart. facts. Examples • When possible. This helps to identify the categories contributing to 80% of the problem. Draw the value (errors. rather than creating one in Excel . 3.Example 3 • Minitab gives an extra dimension to Pareto Analysis .Example 4 2 Pareto Analysis v2.Pareto Analysis How to use it 1. Gather facts about the problem. using Check Sheets or Brainstorming. use Minitab’s version. 4. as an industry standard.ppt .refer to Example 1 in this section • Use a series of Pareto charts to drill down to more detail . Rank the contributions to the problem in order of frequency. 5. It can also be helpful to add a line showing the cumulative percentage of errors as each category is added. say 40:60 . Review the chart – if an 80/20 combination is not obvious. 2.

S oint dere atpl f itte h Bo s e i p.ppt Percent Count 400 .Pareto Analysis Examples • Example 1 : Minitab’s version of Pareto is used as an industry standard. e d air val pe d d ard an or ted ep o m d aulty ng Fitte c t. d is s f it mic R Rem oble hort nec t ation rs e Mis ug g tF l J e s l a a o H e M no ary Pr S on min the m en Mis om et E ed t S ing t o L r a r n l e m o h g e o C a D n t e n O pt po Cmp ng Cot Me ef or nts n ouch pon not t Lon Wir d Ec utio hioko Sold ulty Cont o D Joi t T om gs Cm Com T Fa ink y on r eca Wr pt n L p C e e P m L m 141 139 C69 52 22 C 20 20 17 17 17 B 16 13 10 10 10 8 6 5 29 600 500 300 20 0 Defect Count Percent Cum % 23 23 22 45 11 56 8 65 4 68 3 71 3 75 3 77 3 80 3 83 3 85 2 87 2 89 2 91 2 92 1 94 1 95 1 5 95 100 3 Pareto Analysis v2. It gives summary information and starts the cumulative % count at the top of the first bar: Pareto of D3 Small Engine Card Faults 100 80 60 40 200 100 0 c.

5 2 3.5 5 8.ppt Percent .1 92.Pareto Analysis Examples • Example 2 : a series of Pareto charts drill down to more detail: Fault by Main Cause 100 70 60 50 80 60 40 20 0 n s ig De t en on mp Co ild Bu er Oth 40 30 20 10 0 1st level Analysis gives “Design” as main cause of failure 2nd level Analysis gives breakdown of “Design” Defect Count Percent Cum % 57 75.0 4 Pareto Analysis v2.8 91.0 Design Faults 100 50 80 40 Percent Count Count 60 30 20 10 0 40 20 0 ec nn Co t le du Mo e r qu To tor Mo s ld Co rt Sta n Tra u sd od rM ce ule IC AS n atio libr Ca IOP n Imo Defect Count Percent Cum % 21 36.3 97.8 10 17.4 8 14.1 4 5.4 2 2.3 96.0 68.0 82.4 8 14.8 36.2 3 5.5 100.6 100.0 13 17.5 54.0 75.

6 13 5.0 138 58.8 38.9 10 4. the balance of defects (138) are blocked together as “others”. it is 40:60 Pareto Chart for Child11 100 200 80 60 100 40 20 0 0 7E 3 .4 16 77 82 88 46 80 95 ers 27 6-7 C7 C6 C7 C7 C7 C7 -81 7 6 C C C C C C 4 Oth 4 -6 KD KD KD KD KD KD -56 40 -56 0 40 4 Defect Count Percent Cum % 18 7. this looks unhelpful.3 11 4.5 13.8 34. most were counts of 1 or 2.ppt Percent Count .10 82 4.0 100.1 9 3.6 7.9 9 3. A full Pareto would be very flat.most are “S-clip” problems (links between ICs and PCB) 5 Pareto Analysis v2. But of 238 data points.6 11 4.6 17. here.4 42. be prepared to cut the defects in a different way.Pareto Analysis Examples • Example 3 : if the original Pareto is very flat.7 8 3.0 11 4.6 26.6 22. This enables us to see that a “top 9” of defects can be analysed . Therefore after the first cumulative 42% of defects (100) .2 31.0 At first glance.

Pareto Analysis Examples • Example 4 : an extra dimension to Pareto charts .eg work shift: Pareto Chart for Flaws Day 15 15 Evening Scratch Count 10 Count Peel 10 5 5 Other 0 0 Night 15 Count 10 5 Count 15 10 5 Weekend Smudge 0 0 6 Pareto Analysis v2.ppt .cut defects across another variable .

ppt .Pareto & CauseEffect Revisited 7 Pareto Analysis v2. HINT ! The most frequent is not always the most important! Be aware of the impact of other causes on Customers or goals.Pareto Analysis How it helps Pareto Analysis is a useful tool to: • identify and prioritise major problem areas based on frequency of occurrence. • identify major causes and effects.4 : Measure /Analyse . • separate the ‘vital few’ from the ‘useful many’ things to do. References • ASG aTQ training module 7. The technique is often used in conjunction with Brainstorming and Cause and Effect Analysis.

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