areto Ana|ys|s

Alfredo areLo (18481923) conLrlbuLed a loL ln Lhls conLexL and gave Lhe concepL of vlLal few" and
useful many" A areLo ulagram ls an approach Lo rank daLa and classlfy lL ln downward order from lefL
Lo rlghL 1he vlLal few are on Lhe lefL slde of Lhe charL and useful many are on Lhe rlghL

Concept
8y emphaslzlng 20 of work 80 of beneflLs of dolng
Lhe compleLe work can be obLalned CuallLaLlvely
soluLlons of ma[orlLy of problems (80) are due Lo a few
baslc causes (20)"

rocess
Step 1: Form a table, listing the reasons and their Irequency as a percentage.
Step 2: Arrange rows in downward manner oI importance (i.e., the most important reason
Iirst)
Step 3: include a cumulative percentage column to the table
Step 4: Draw reasons on and cumulative percentage on axis
Step 5: Form a curve by joining the points
Step 6: Draw a bar graph with reasons on x and percent Irequency on yaxis on the same
graph
Step 7: Draw line on yaxis parallel to xaxis. Then put the line at the point oI intersection
along with curve on xaxis. The point on the xaxis distinct the vital reasons (on the
leIt) and nonvital reasons (on the right)
Step 8: Unambiguously, Review the chart make certain that at least 80 oI the reasons are
detained


Advantages

O Otqoolzotloool fflcleocy Cnce Lhe problems are llsLed Lhey are ranked hlghesL ln
lmpacL should become Lhe cenLer of focus for problem resoluLlon or lmprovemenL
O obooceJ ltoblem5olvloq 5kllls Cnce youve clearly skeLched Lhese facLs you can sLarL
plannlng necessary Lo resolve Lhe lssue
O mptoveJ ueclsloo Mokloq coo measure and compare Lhe offshooLs of changes lL
focuses on resolvlng problems and enables more preparaLlon and beLLermenLs ln
declslon maklng


Cr|t|c|sm
O osy to moke bot Jlfflcolt to ttooblesboot however one of Lhe dlsadvanLages lL glves no
sLress on Lhe rooL problems
O Moltlple poteto cbotts moy be oeeJeJ one charL may noL be enough 1o flnd ouL Lhe
reasons for Lhe problems Lo lLs orlgln lower levels of areLo charLs are needed
O ;oolltotlve uoto vetsos ;oootltotlve uoto 1hey deplcL only quallLaLlve daLa whlch ls
observable lL cannoL be used Lo calculaLe Lhe mean Lhe sLandard devlaLlon or oLher
sLaLlsLlcs

Cause and Lffect D|agram

1hls analysls ls based on Lhe plcLures composed of llnes and symbols deslgned Lo deplcL an lnLeracLlonal
relaLlon beLween Lhe effecLs and Lhe causes lL was developed by urkaoru lshlkawa ln Lhe mlddle of 20
Lh

cenLury Also known as sblkowo uloqtom or flsbbooe Jloqtom Lach ma[or cause ls furLher
subdlvlded lnLo numerous mlnor causes Cause and effecL dlagram ln acLually plcLurlng all Lhose ma[or
and mlnor causes
Concept
lor every effecL Lhere are llkely Lo be varlous causes"




Lssent|a|s of CL D|agram format|on
O arLlclpaLlons of maxlmum number of Lhe squad and avold one or Lwo lndlvlduals Lo Lakeover
Lhe bralnsLormlng sesslon
O CuanLlLy of ldeas should be encouraged raLher Lhan Lhe quallLy of ldeas Cne person's ldea can
Lrlgger someone else's ldea
O CrlLlclsm of an ldea ls noL allowed LvaluaLlon of ldeas occurs aL laLer Llme
O IlslblllLy of dlagram ls necessary lL should be Laped Lo a wall for maxlmum vlslblllLy
O CreaLe a soluLlon orlenLed aLmosphere and focuses on resolvlng problems raLher Lhan [usL
dlscusslng lL
O eL Lhe ldea keep allve for a conslderable Llme and Lhen sLarL anoLher bralnsLormlng sesslon
rof|t of CauseandLffect D|agram
O elps declde rooL causes
O lve confldence for Leam parLlclpaLlon
O Dses an arranged easyLoread deslgn
O olnL Loward probable reasons of dlsparlLy
O Ampllfles process undersLandlng
O recognlze areas for gaLherlng daLa

teps and |ay out of the CL D|agram

























Advantages
O cruLlnlze acLual clrcumsLances for Lhe prlnclple of producL or servlces enhancemenL more
efflclenL use of asseLs and reduced cosL
O LradlcaLe clrcumsLances causlng nonconformlLles and cusLomer complalnLs
O Landardlze on hand and anLlclpaLed operaLlons
O LducaLe and gulde personnel ln declslonmaklng and correcLlveacLlon Lrlcks


D|sadvantages
O lL ls an oplnlonbased means and lLs plan resLrlcLlons Lhe ablllLy of users Lo deflne mulLlple
sLages of 'why replles excepL Lhe manuscrlpL LhaL ls used ls Lruly ouLslzed
O LsLlmaLlon (voLlng of some form) ls generally used Lo opL for Lhe mosL llable reasons from Lhose
scheduled on Lhe dlagram
O 1eams are opLlmlsLlc Lo check dlverse counLermeasures for Lhe chosen reasons Lo wlLness lf Lhe
Lrouble goes away LhaL could be boLh Llme consumlng and lavlsh
O 1he means also noL cenLer on rullng and ellmlnaLlng general reasons
O
AkCACnL ICk CLVING kC8LLM
1here are many approaches Lo solve problems by uslng any of Lhe Lool or Lechnlque buL usually
a LhreesLep process ls used
1) |tuat|on appralse Lhe recenL clrcumsLances and how lL came abouL
) @arget classlfy purposes and/or ob[ecLlves
) ath ] roposa| ploL a doable paLh Lo Lhe goals/ob[ecLlves
AnoLher alLernaLlve approach ls called utow5ee1blok
1) Draw whaL ls Lhe perfecL reflecLlon or Lhe preferred end condlLlon?
) ee whaL ls Lodays clrcumsLances? WhaL ls Lhe dlfference from perfecL and why?
) @h|nk whaL deflnlLe measures musL be Laken Lo lock Lhe breach beLween Lodays
slLuaLlon and Lhe perfecL sLaLe?
) |an whaL resources are requlred Lo execuLe Lhe acLlvlLles?
An alLernaLlve Lo Lhe utow5ee1blok approach ls called 5ee1blokutow
1) ee whaL ls Lodays slLuaLlon?
) @h|nk ldenLlfy goals/ob[ecLlves
) Draw plan a paLh Lo achleve Lhe goals/ob[ecLlves