Training on

Pareto Analysis

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram
1. What is Pareto diagram ? It is a combination of bar and line graphs of accumulated data.

It is based on 80/20 principle i.e. 80 % of problems occurs due to 20% of problem categories.

2. When to use Pareto diagram ?

When there are large number of issues or problems in give area Shop Floor, office, lab etc
In above situation Pareto Diagram is one of the best technique to Prioritize the number of available issues or problems
7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram illustrative Example

100.00%

98% 90%

98%

99%

100%
90.00%

80.00%

Occurrence Frequency

74%

70.00%

60.00%

61 47%

50.00%

40.00%

36 21 10 1
0

30.00%

20.00%

10.00%

1
0.00%

C 7 Q C Tools - Problems i p Type Of Issues

la L td In d o r e S E Z
Cumulative %

Occurrence Frequency

Pareto Diagram Prioritization Based On Occurrence Frequency

Defects Found In Pack Stock Prazocip sxl 16 - Dec 2011.
100%

98% 90%
Defects In Pack Stock

98%

99%

100%
90%

Defect Quanity
61 36 21 10 1 1 1

% Quantity 46.56% 27.48% 16.03% 7.63% 0.76% 0.76% 0.76%

Cumulative %
46.56% 74.05% 90.08% 97.71% 98.47% 99.24% 100.00%

80% 70% 60% 50% 40% 30%

74%

Black Spot/Particle Torn/Cut Pocket Other defects Blister Knurling

Defect Quanity

61 47% 36 21

Blister Overprinting Extra foil Outer carton overprinting

20%

10 1
0

10%

1
0%

Defect Categories

7 Q C Tools

C ip la L td In d o r e S E Z
Cumulative %

Defects In Pack Stock

Pareto Diagram Prioritization Based On Frequency & Criticality

Pareto -Defects Found In Pack Stock Prazocip 5xl. 16 - Dec - 2011
100% 300 90% 80% 250 78%
Defects In Pack Stock
Black Spot/Particle

97%

98%

99%

100% 90%

Weighted Score
183 72 21 40

Defect Quanity
61 36 21 10

Criticality 1- 5 Scale
3 2 1 4 5 2 4

% Score
55.96% 22.02% 6.42% 12.23% 1.53% 0.61% 1.22%

Cum. %
70%
55.96% 77.98% 84.40% 96.64%

Criticality Score

200

183 56%

Torn/Cut Pocket Other defects Blister Knurling

60% 50% 40% 30%

150

Blister Overprinting
Extra foil Outer carton overprinting

5
2 4

1
1 1

98.17%
98.78% 100.00%

100 72

20% 50 40 21 5 0 4 2 0% 10%

Defect Categories

7 Q C Tools

C ip la L td In d o r e S E Z

Weighted Score Cumulative %

How to Apply Pareto Diagram

a) Finding 20 % of products causing 80% of customer complaints. b) Finding 20% of products accounting 80% of dispatch volume or 80 % of profit. c) Finding 20% of possible causes of delays accounting 80% of delays in schedule.

d) Finding 20 % of inventory which occupies 80% of total warehouse space.

e) Also finding 20% of suppliers which accounts for 80% of inventories.

7 Q C Tools

C ip la L td In d o r e S E Z

How to Apply Pareto Diagram

1. To identify & reduce defects in Strip/Blister or Bottle Packing a) Collect data on Defects found during Pack stock inspection, say for last 3 months. b) Create Product wise Pareto Diagram for total no. of defects found in each product.

c) Select top 2-3 products contributing approximately 80% of total no of defects.

d) Create Individual Pareto Diagram for each of product

For all the campaigns - Overall

Batch Wise
7 Q C Tools

C ip la L td In d o r e S E Z

How to Apply Pareto Diagram

1. To identify & reduce defects in Strip/Blister or Bottle Packing e) Select top 3 high frequent defects across the batches. f) Perform Root Cause Analysis using Why -Why & Cause & Effects Analysis g) Identify Corrective Action based on above analysis. h) Implement the above identified action & Perform Pareto Analysis again to see the effectiveness of Action Implemented

7 Q C Tools

C ip la L td In d o r e S E Z

How to Apply Pareto Diagram

2. To identify & reduce Minor Stoppages (Less Than 5 Minutes) along the Packing Line a) Collect minor stoppages data shift wise & Line wise Collect data on Brief Stoppage Description frequency of occurrence approximate total duration b) Create Shift wise & Line wise Pareto Diagrams.

c) Create Weekly - Overall Pareto Diagram

d) Compare shift wise Paretos to find top 3 high frequent stoppages for given line & Product

7 Q C Tools

C ip la L td In d o r e S E Z

How to Apply Pareto Diagram

2. To identify & reduce Minor Stoppages (Less Than 3 Minutes) along the Packing Line. e) Perform Root Cause Analysis using Why -Why & Cause & Effects Analysis f) Identify Corrective Action based on above analysis. g) Implement the above identified action & Perform Pareto Analysis again to see the effectiveness of Action Implemented

7 Q C Tools

C ip la L td In d o r e S E Z

How to Apply Pareto Diagram

3. To identify & reduce Major Stoppages (Less Than 3 Minutes) along the Packing Line. a) Exactly similar approach as explained in Example 2 to be used for identifying & reducing Major Stoppages along the Packing line

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 1

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram
7. Usage of Pareto Diagram? Identify & Prioritize problem. Find out effect of action taken. Previous & after improvement Pareto To drill down in prioritized problem categories In above Pareto of Unplanned Stoppages, around 70 % of stoppages are due to 30 % of categories i.e. others, Blister collection & machine settings cartonator.

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 1

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram
6. How To Construct Pareto Diagram? Excel Template method a) Select the type of data to be analyzed for. Eg. Here Unplanned stoppages at Line No 5 of tablets packing is considered

b) Use this template to prepare Pareto Diagram.

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 2

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 2

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 2

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Application Example 2

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Exercise:

1. Perform Pareto analysis for following Line stoppages Data. Line No: 16. Date: 23- Oct-2011. Shift: 1st
Sr. No. 1 2 3 Line Stoppages Major Start up Foil Change Machine Setting Blister Duration In Minutes 30 5 20

4
5 6

Foil Change
Machine Settings Blister Meeting

15
25 70

7
8

Defoiling & Rejects

Foil change

15
10

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Exercise:

2. Perform Pareto analysis for following Line stoppages Data. Line No: 15. Date: 04- Nov-2011. Shift: 2nd
Sr. No. 1 2 Line Stoppages Major Batch Change Line clearance Duration In Minutes 30 15

3
4 5 6 7 8 9 10

1st Print Proof

In Process Check Machine Setting - Blister QA observation Foil Change Machine Setting - Blister Officer Not Available Blister collection

35
10 10 15 20 25 35 15

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Exercise:

3. Perform Pareto analysis for following Minor stoppages Data. Line No: 02. Date: 22- Dec-2011. Shift: 1st
Sr. No. 1 Line Stoppages Major Cotton Insertion Issue Duration In Minutes 0.75

2
3 4

Cotton feeding pipe Issue

No cotton feeding Sachet Roll Struck inside Machine

7.33
0.25 8.5

5
6 7 8 9

Silica Roll winding issue

Bottle Struck below Silica M/C Bottle Overfilling issue Tablet struck in capping M/C Cap loading

2
1.7 0.5 0.33 1.25

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Exercise:

3. Perform Pareto analysis for following Minor stoppages Data. Line No: 16. Date: 21- Jan-2012. Shift: 1st
Sr. No. 1 2 3 4 5 6 7 8 9 10 Reason For Stoppage Frequency 1 2 1 1 7 2 1 5 6 2 Duration Minutes 120 1.5 2.33 0.5 4.8 3.8 0.5 9.25 2 1 Avg Duration Minutes 120.0 0.8 2.3 0.5 0.7 1.9 0.5 1.9 0.3 0.5

Leaflet missing issue & Leaflet partial folding issue. Breakdown Maintenance Leaflet Missing Clearing Leaflet & Blister rejection Carton setting at conveyor Checkweigher stoppage Dent mark on carton during Carton Packing Carton obstruction at conveyor Carton flaps not getting closed Carton Obstruction at Outfeed Droppage of cartons from carton feeding belt to conveyor

7 Q C Tools

C ip la L td In d o r e S E Z

Pareto Diagram Exercise:

4. Perform Pareto analysis for following Pack Stock Inspection Data.
Sr. No. Defects Categories No. Defects Found

1
2 3 4 5 6 7

Outer Carton Overprinting

Missing Leaflet Blister Overprinting Broken Tablet/Capsule Black Spot/Black Particle Chipping/Picking Seal open

4
2 3 2 2 5 2

8
9 10

Torn Pocket/Cut Pocket

Blister / Strip Wrinkles Sticker Label Wrinkles

7
9 3

7 Q C Tools

C ip la L td In d o r e S E Z