Best way to make Pareto Chart
This is how a professional Pareto Chart looks like!
The history behind the Pareto Chart.
Wilfredo Pareto (1848-1923)
Wilfredo Pareto was born in Paris on 15th July- 1848 of a French mother and an Italian father. In 1867 he obtained a degree in mathematics from the Faculty of Sciences of the University of Turin and then, in 1870, a Civil Engineering Diploma from the Polytechnic College with a thesis on the theory of elasticity of solid bodies and on the integration of differential equations which define their equilibrium.
In 1896 he found that 80% of the land of Italy was owned by 20% of people. After that he had started co-relating this principle in other areas also like: sales and marketing, Height of people, etc then he found that it is not exact 80:20 but near about it or closer to this like 75:25 or 70:30.
In 1896 he found that 80% of the land of Italy was owned by 20% of people. After that he had started co-relating this principle in other areas also like: sales and marketing, Height of people, etc then he found that it is not exact 80:20 but near about it or closer to this like 75:25 or 70:30.
The Pareto Principle is a Productivity Improvement tool.
It is also called the 80: 20 rule.
It is not necessarily exact 80 / 20. it means that a small number of things have a relatively higher impact on our day to day life.
Pareto Principle is used to find out our Priorities.SO that we can have a focused approach.
How we can reduce Process rejection in our organization with the help of making the Pareto chart?
The general actions might be to call our responsible employees and inform them, that I do not want anything wrong now onward. And I will fire one of the employees if I have found another Customer rejection. Will it give sustainable results? For temporarily you may be right, because of fear employees will start hiding things to show fewer rejections. But this strategy will not work for a longer duration.
Then What to do???
The Pareto Principle has an answer to this problem. Are you ready to go ahead?
If yes then you can follow steps as under:
• Take a summary of all the rejection of last month.
• Divide these rejections into different categories.
• Find out the category wise rejection figures.
• Arrange these figures into descending order.
• Make the Pareto chart.
You can also watch the video below to make the Pareto chart.
Let's Make the Pareto Chart
Let's assume we have this kind of rejection.
Description of Parts , Rejection Quantity
A , 5
B , 10
C , 25
D , 50
E , 75
F , 2
G , 7
H , 8
I , 1
J , 25
K , 12
L , 15
M , 18
N , 22
O , 20
Total 295
Arrange these rejections into descending order by Data Filter in Excel. This will look like as under.
Description of Parts , Rejection Quantity
E , 75
D , 50
C , 25
J , 25
N , 22
O , 20
M , 18
L , 15
K , 12
B , 10
H , 8
G , 7
A , 5
F , 2
I , 1
Total 295
Now Add the Cumulative total
Description of Parts Rejection Quantity Cumulative Total
E 75 75
D 50 125
C 25 150
J 25 175
N 22 197
O 20 217
M 18 235
L 15 250
K 12 262
B 10 272
H 8 280
G 7 287
A 5 292
F 2 294
I 1 295
Total 295
We should take care during the cumulative total figure should match with our Total figure. If these figures are not matching, then we have made some mistakes.
Now we will find the percentage. By dividing 75/Total of 295 and so on.
In this case, we should note that the last figure should come 100% if it is not so we have made some mistake.
Description of Parts , Rejection Quantity Cumulative Total %
E 75 75 25.4
D 50 125 42.4
C 25 150 50.8
J 25 175 59.3
N 22 197 66.8
O 20 217 73.6
M 18 235 79.7
L 15 250 84.7
K 12 262 88.8
B 10 272 92.2
H 8 280 94.9
G 7 287 97.3
A 5 292 99.0
F 2 294 99.7
I 1 295 100.0
Total 295
Select these data and insert the bar graph.
Description of Parts , Rejection Quantity
A , 5
B , 10
C , 25
D , 50
E , 75
F , 2
G , 7
H , 8
I , 1
J , 25
K , 12
L , 15
M , 18
N , 22
O , 20
Right Click on a bar graph and click on “Select data source”. Then put coma and select % column.
You will find a graph like this.
Right-click on a bar graph and select “Change series chart type” then select % in a column in secondary axis and select line graph instead of a column. This graph will look like this.
In this graph, you can see that at the top 120 % is there whereas we need 100 % for this do the Double click on Secondary axis and select 100 maximum instead of 120.
But the line graph is not starting from the top in this case for this double click on the primary axis.
And change maximum from 80 to 295 (Total figure).
The Value is not visible on this graph. Right-click on the bar graph and line graph then select the data label. You will find the graph as under.
posted by The Productivity Way @ February 04, 2020
1 Comments
1 Comments:
There are so many aspects of work that can be improved, knowing where to begin is often difficult. Pareto analysis will help you: pareto chart
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