Management
Presenter : Ms Rina Sajise
Seven (7) Tools of TQM
Pareto Analysis:
Pareto Chart
45
120%
40
100%
35
30
80%
25
60%
20
15
40%
10
20%
5
Vilfredo Pareto – Italian Economist
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Operations Management: An Asian Perspective (William J. Stevenson and Sum Chee Chuong)
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Understanding the Pareto
Principle
Doing 20% of work generates advantage of 80% of entire job
In terms of quality improvement, large majority of problems
(80%) are created by a few key causes (20%).
Separating the Vital Few from the Trivial Many
Pareto Charts
Pareto Chart
45
120%
40
100%
35
30
80%
25
60%
20
15
40%
10
20%
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Pareto Charts – Graphics that identify the few critical items as opposed to many less important ones.
Source: Operations Management 10Ed. (Jay Heizer and
Barry Render)
How is Pareto Chart Constructed?
Problem: Hard Rock’s bar manager decides to do a similar analysis on complaints she has collected over the past year: too expensive, 22; weak drinks, 15; slow service, 65; short hours, 8; unfriendly bartender, 12.
Step 1: Record the raw data
Step 2: Order the data Step 3:
Determine the percentage that each category represents
Step 4:
Determine the percentage that each category represents
Step 5: Prepare and analyze the diagram
Create a chart with the selected values
Pareto Chart
Cause and Effect Diagram
Fishbone diagram http://www.investopedia.com/terms/i/ishikawa-diagram.asp#ixzz3eZ4VGcqo (J. Heizer, B. Render, Operations Management)
Kaoru Ishikawa
(Ishikawa diagram)
Cause and Effect Diagram
Manpower
/People
Causes
Ishikawa diagram
Methods/
Process
Effect
Fishbone diagram
Problem
Material
Machine/
Equipment
(J. Heizer, B. Render, Operations Management)
A schematic technique
used