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# Pareto Chart Workshop - PowerPoint PPT Presentation

Basics of a Pareto Chart. PG 2. Definition: A Pareto Chart is a bar chart that ranks problems or causes of problems in descending order from left to right on a horizontal axis. Problem Areas in Setting Up Meeting Rooms. 60. (48). 50. Number of Times Problem Occurred. 40. 30. 20.

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Basics of a Pareto Chart

PG 2

Definition: A Pareto Chart is a bar chart that ranks problems or causes of problems in descending order from left to right on a horizontal axis.

Problem Areas in Setting Up Meeting Rooms

60

(48)

50

Number

of Times

Problem

Occurred

40

30

20

(10)

10

(6)

(5)

(4)

(3)

0

External

Noise

Room

arranged

improperly

Room

not

clean

Room

uncomfort-

able

Room

not set up

on time

AV

needs

not met

Problem Type

Information provided courtesy of Sewickley Valley Hospital, PA

OH PC-1

Workshop Objectives

PG 3

Is designed to...

• Help participants learn how to use a Pareto Chart to increase the effectiveness of problem solving and process improvement.
• Help participants prepare for, construct and interpret a Pareto Chart.

Is not designed to...

• Help participants become skilled in facilitating a group using a Pareto Chart.

OH PC-2

Pareto Chart Objectives

PG 3

• To work as a team to tackle problems in a systematic way, starting with the most important problem.
• To find the 20% of the sources of 80% of the problems in a process or system.
• To get closer to the root cause by breaking a problem down into smaller problems and identifying their causes.
• To build a clear, easy-to-understand visual to track progress.

OH PC-3

PG 4

• Don’t be afraid to make mistakes; everyone is learning.
• Listen to each other as well as to the workshop leader; each person has a lot of valuable experience and insight.
• Give the tool a chance to work; don’t judge it before you’ve experienced the whole process.
• Feel free to have fun; no one says learning has to be dull!

OH PC-4

Time

_______________

_______________

_______________

_______________

Topic

Workshop Introduction

Pareto Chart Introduction

Pareto Chart Practice

Pareto Chart Follow-up

Workshop Agenda

PG 4

OH PC-5

®

M&M’s Pareto Chart

®

• Decide upon categories.
• Divide the data into categories.
• Construct the bars.
• Interpret the chart.

OH PC-6

Constructing the Pareto Chart

PG 6

Step 1: Choose a Problem to Study

Step 2: Choose Categories

Step 3: Select a Unit of Measure

Step 4: Choose a Time Period

Step 5: Gather Data

Step 6: Compare Data

Step 7: Construct the Chart

Step 8: Show Cumulative Percentages (optional)

Step 9: Interpret the Results

OH PC-7

The Facilitator’s Role

A facilitator is expected to:

• Make sure that the problem is clearly understood by everyone.
• Get everyone on the team to participate in the current step.
• Manage the time so that each task is finished based on the training schedule.
• Make sure that any and all ideas are recorded accurately.
• Summarize the team’s conclusions based on the consensus of the team and the specific assignment.

OH PC-9

Check Sheet

Carmen’s World Famous Whoopie Pies

Project:

Carl

June 20-26

Definition: The Check Sheet is a simple, organized way of tracking the frequency of particular events over time.

Data collected by:

Dates:

T

ypes of

defects in

200

Location:

Heavenly, Maine plant

Lot size:

finished pies

Defect

Total

June 20

June 21

June 22

June 23

June 24

June 25

June 26

T

oo much cream

24

T

oo little cream

9

T

oo crumbly

21

T

oo big

13

T

oo small

14

Not sweet

9

enough

Not chocolaty

1

enough

Has a bite in it

6

OH PC-10

Uses of a Check Sheet
• To gather data
• To test a theory
• To evaluate alternative solutions
• To verify that your improvement worked

OH PC-11

Constructing a Check Sheet

1. Agree upon definitions.

2. Plan the data collection.

3. Design the Check Sheet.

4. Collect the data.

OH PC-12

Steps in Constructing a Pareto Chart
• Draw the X and Y axes.
• Record the scale on the Y axis (vertical line).
• Construct the vertical bars on the X axis (horizontal line).
• Combine the smallest bars.
• Make it clear.

OH PC-13

HOTrep Problem Data

220

200

180

160

140

120

100

80

60

40

20

# of Reported Occurrences

33%

Boot problems (68)

Reflection hang (24)

Lat. Connection (20)

System integrity (19)

System config. (16)

Print problems (16)

Reflection syst. integrity (11)

File problems (8)

Reflections misc. (6)

Others (15)

12%

10%

9%

8%

8%

7%

5%

4%

3%

1%

HOTrep Problem Data

PG 13

Information provided courtesy of SmithKline Beecham

OH-PC 14

Pareto Chart Process Questions
• Any surprises?
• Effect on the team?
• Concerns?

OH PC-15

After the Pareto Chart

PG 15

• Talk things out; decide what it means.
• Collect more data if necessary.
• Communicate with others.

OH PC-16

Is a Tool Needed?

PG 16

• Strong support needed?
• Requires consensus?
• Consensus difficult?

OH PC-17

Is the Pareto Chart the Right Tool?

PG 16

• Do you need to focus on the problems or causes that will have the biggest impact on improving the process?
• Do you need to break some problems down into finer-grain detail?
• Do you need an easy visual way to track progress?
• Do you need a tool to show that new problems are not cropping up when others get solved?

OH PC-18

PG 17

35

30

25

20

% of failed appointments

15

10

5

0

Forgot

Work-

Personal

Leave

Misc.

Trans-

ferred

Vehicle

% 31 25 21 8 8 4 2

Information provided courtesy of U.S. Navy, Naval Dental Center, San Diego

OH PC-19

PG 18

30

25

20

% of failed appointments

15

10

5

0

Corpsman

Under-

way

Forgot

Personal

Vehicle

Transfer

School

% 27 25 23 9 7 5 4

Information provided courtesy of U.S. Navy, Naval Dental Center, San Diego

OH PC-20

Dollars

(\$)

# of

Complaints

10,000

15,000

20,000

5,000

10

15

20

25

0

5

0

Shipping

Instal-

lation

Field Service Customer Complaints and Cost to Rectify Field Service Complaints

Instal-

lation

Clerical

Cost to Rectify Field Service Complaints

Field Service Customer Complaints

Delivery

Shipping

© 1996 GOAL/QPC Instructional Module–Pareto Chart

42% of all complaints

13% of total cost

Clerical

Delivery

Misc.

Misc.

PG 19

PG 19

OH PC-21

Keys to Successful Use of the Pareto Chart

PG 21

• Use it when there is a lack of focus on which problem or cause to address.
• Use it to engage visual learners in the process of moving towards the solution phase of problem solving or process improvement.
• Keep everyone on the team involved and contributing to the process.

OH PC-22