The learner will identify the purpose and uses of a Pareto chart.
What is the purpose of a Pareto chart?
What is the purpose of a Pareto chart?
The Pareto chart (sometimes called the 80/20 rule) correctly identifies the 20% of the source that causes 80% of the problem.
Sometimes called the “80/20 rule,” a Pareto chart identifies the 20% that cause 80% of the problems. Consider the 100 guest complaints that a hotel received last year: 20 were about dirty rooms, 5 involved pool water temperature, 5 related to cell phone service, 60 called the staff unwelcoming, 5 reported gum on a hallway floor, and 5 related to noise.
The Pareto chart identified that 80% of the complaints were caused by only two areas. Hotel management could then decide to focus on providing better room cleaning and a more welcoming staff.
What is the purpose of a Pareto chart?
The Pareto chart (sometimes called the 80/20 rule) correctly identifies the 20% of the source that causes 80% of the problem.
Sometimes called the “80/20 rule,” a Pareto chart identifies the 20% that cause 80% of the problems. Consider the 100 guest complaints that a hotel received last year: 20 were about dirty rooms, 5 involved pool water temperature, 5 related to cell phone service, 60 called the staff unwelcoming, 5 reported gum on a hallway floor, and 5 related to noise.
The Pareto chart identified that 80% of the complaints were caused by only two areas. Hotel management could then decide to focus on providing better room cleaning and a more welcoming staff.
Why does a company want to focus on the 20% that causes 80% of the problems?
Why does a company want to focus on the 20% that causes 80% of the problems?
It's all about the focus
Example: If 80% of customers buy just one item each, but 20% of customers buy 50 items each, which group of customers should the company focus on? Of course, the answer is the customers who buy the most items.
Why does a company want to focus on the 20% that causes 80% of the problems?
It's all about the focus
Example: If 80% of customers buy just one item each, but 20% of customers buy 50 items each, which group of customers should the company focus on? Of course, the answer is the customers who buy the most items.
Why does the Pareto chart suggest putting the most frequent data closest to the "y" axis, and the least frequent data farther away from the "y"axis?
Why does the Pareto chart suggest putting the most frequent data closest to the "y" axis, and the least frequent data farther away from the "y"axis?
Because of its illustrative visability
When you move data points from categories to the left of the Pareto chart, you will quickly see which categories (80%) will need your full attention and focus.
Why does the Pareto chart suggest putting the most frequent data closest to the "y" axis, and the least frequent data farther away from the "y"axis?
Because of its illustrative visability
When you move data points from categories to the left of the Pareto chart, you will quickly see which categories (80%) will need your full attention and focus.
Who was Pareto and why was a chart named after him?
Who was Pareto and why was a chart named after him?
Vilfredo Pareto was an Italian engineer who was interested in micro-economics, and his 80/20 principle was important enough to have the Pareto chart/principle named after him.
Who was Pareto and why was a chart named after him?
Vilfredo Pareto was an Italian engineer who was interested in micro-economics, and his 80/20 principle was important enough to have the Pareto chart/principle named after him.
Does this tool increase or decrease project complexity?
Does this tool increase or decrease project complexity?
Decrease the complexity
This tool decreases the complexity of a project by illustrating where most of the errors or defects are occurring, therefore making it easier to decide which problems to work on first.
Does this tool increase or decrease project complexity?
Decrease the complexity
This tool decreases the complexity of a project by illustrating where most of the errors or defects are occurring, therefore making it easier to decide which problems to work on first.
Which adage most reflects the purpose of the Pareto chart?
Which adage most reflects the purpose of the Pareto chart?
Start working on a problem by "picking the low-hanging fruit."
Which adage most reflects the purpose of the Pareto chart?
Start working on a problem by "picking the low-hanging fruit."
What's the economic purpose of using this Pareto tool?
What's the economic purpose of using this Pareto tool?
To improve the bottom line of a company
Most people in manufacturing will know the phrase, "best bang for the buck." The Pareto chart illustrates this.
What's the economic purpose of using this Pareto tool?
To improve the bottom line of a company
Most people in manufacturing will know the phrase, "best bang for the buck." The Pareto chart illustrates this.
How often is the Pareto chart used in everyday problem-solving?
How often is the Pareto chart used in everyday problem-solving?
A great deal
The Pareto chart is used so often that almost all spreadsheet and charting software has it available.
How often is the Pareto chart used in everyday problem-solving?
A great deal
The Pareto chart is used so often that almost all spreadsheet and charting software has it available.
Where in your everyday life have you used "best bang for my buck" or "low-hanging fruit" Pareto analysis?
Where in your everyday life have you used "best bang for my buck" or "low-hanging fruit" Pareto analysis?
Both examples are true
The Pareto chart is a simple tool, yet it has wide-ranging uses.
Where in your everyday life have you used "best bang for my buck" or "low-hanging fruit" Pareto analysis?
Both examples are true
The Pareto chart is a simple tool, yet it has wide-ranging uses.
You have answered 5 of 10 questions correctly.
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