Page 184 - FLL Virtual Binder 2018

Pareto Diagrams
• Vertical bar graph which helps to determine which problems to solve, and in what order
• Based upon earlier check sheets or other forms of data collection methods, helps direct attention and efforts to the truly important problems
• They quickly show the “vital few” from the “plentiful many” issues demanding attention and limited resources
Pareto Principle: The Pareto Principle is sometimes called the 80/20 rule. 80% of the trouble comes from 20% of the problems.
Constructing a Pareto Diagram – The How To
1. Select the problems that are to be compared and ranked by:
a) brainstorming
b) using existing data c) using check sheets
2. Select a standard for comparison such as number of recorded errors or rejects within a department.
3. Select a time period to be studied: one month, one week, etc.
4. Determine what categories need to be established during data collection, by shift, team, product, department, etc.
5. Calculate the specific totals of all recorded incidents during the identified period to establish a ranking for the number of occurrences experienced.
6. Draw an X and Y-axis and list the categories from left to right on the horizontal axis in the order of decreasing frequency.
7. Above each category listed, draw a rectangle where the height represents the number of frequency for that classification. This is done by establishing an equally distributed frequency range with the highest value equaling the sum total of all your recorded occurrences.
8. On the extreme right hand side of your graph draw another vertical axis which will represent percentages, beginning at 0 on the horizontal axis and going to 100 at the top of your graph.
9. Draw a cumulative line over top of each category to represent the sum total of the occurrences listed.
Front Line Leadership Module: Problem Solving
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