Pareto Analysis

Presented By: Jani Saheb

Vilfredo Pareto 1848 - 1923 Economist

In the late 1800's, sociopolitical economist Vilfredo Pareto observed an unequal distribution of wealth and power in a relatively small proportion of the total population.

What is it?
The Pareto Principle states that only a "vital few"

factors are responsible for producing most of the problems. It is often referred to as the 80-20 rule. (80% of the problems can be attributed to 20% of the causes.) This principle can be applied to quality improvement to the extent that a great majority of problems (80%) are produced by a few key causes (20%). If we correct these few key causes, we will have a greater probability of success.

Pareto principle- Examples

20 percent of the problems have 80 percentof the impact. the 80/20 rule states that 80% of revenue is generated

by 20% of the customer base, and 20% of the revenue is generated by the 80%. population.

80% of the wealth was in the hands of 20% of the 20% of the repair parts normally account for 80 percent of

the total inventory

Pareto principle- Examples

80% of production volume usually comes from

20% of the producers 80% of your profits comes from 20% of your customers 80% of sales are attributable to 20% of the sales force. Within your process, 20 percent of the individuals will cause 80 percent of your headaches.

Pareto principle- Examples

In public involvement, 20 percent of the

people will command 80 percent of your time. Of all the solutions you identify, about 20 percent are likely to remain viable after adequate screening. 80% of car accidents are caused by 20% of drivers "A minority of input produces the majority of results."

The Pareto Diagram displays, in

decreasing order, the relative contribution of each cause to the total problem. the number of occurrences, the cost associated with each cause, or another measure of impact on the problem

Relative contribution may be based on

How to use it:

1.

Gather data on the frequency of the causes using a tally sheet.

Rank the causes from the most to the least important, and calculate the cumulative percentage (the cumulative percentage is the first percentage plus the second percentage, and so on).

2. Draw a horizontal axis (X) that represents the different causes, ordered from the most to least frequent. 3. Draw a vertical axis (Y) with percentages from 0 to 100%. 4. Construct a bar graph based on the percentage of each cause. 5. Construct a line graph of the cumulative percent. 6. Draw a line from 80% on the Y axis to the line graph, and then drop the line down to the X axis. This line separates the important causes from the trivial ones.

PARETO CHART
Pareto Analysis for Drawn Fiber NCRs
2. 22 7. 77 2. 22 2. 22 22 2 .2 7. 77 22 2 .2 % Of T otal NCRs 2. 22 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 .2 2 2. 22 2. 22 2. 22 2 22 2. 2 .2 2. 22 2 .2

% of total cumulative

2 .2 2

2 .2 2

2 .2 2

2 .2 2

2 .2

2 .2

2 .2

2 .2

2 .2

T ype Of Non Conformance

PARETO CHART
Pareto Analysis for Sheathed Cable NCRs
2. 22 2. 22 2. 22 2. 22 2. 22 2 .2 22 2 .2 2. 22 2. 22 22 2 .2 % Of T otal NCRs 2. 22 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 .2 2 .2 2. 22 2. 22 2. 22 2 22 2. 2 .2

% of total Cumulative

2 .2

2 .2

2 .2

2 .2

2 .2

T ype Of Non Conformance

Work shop Exercise -1

NCRType Coating Fiber Break Attenuation C.C.E Steps Cladding Bending in Attenuation Curve Cutoff Wavelength Lumps Lamda Zero PMD Whitish Scratches Humps in OTDR trace Air Bubbles Grand Total Total 59 39 31 33 48 20 34 9 11 1 1 1 3 1 291

Calculation of % NCRType
Coating Fiber Break Attenuation C.C.E Steps Cladding Bending in Attenuation Curve Cutoff Wavelength Lumps Lamda Zero PMD Whitish Scratches Humps in OTDR trace Air Bubbles

Total 59 39 31 33 48 20 34 9 11 1 1 1 3 1

% of total 20.3 13.4 10.7 11.3 16.5 6.9 11.7 3.1 3.8 0.3 0.3 0.3 1.0 0.3

cumulative 20.3 33.7 44.3 55.7 72.2 79.0 90.7 93.8 97.6 97.9 98.3 98.6 99.7 100.0

Pareto Graph- Data

NCRType Coating Steps Fiber Break Bending in Attenuation Curve C.C.E Attenuation Cladding Lumps Cutoff Wavelength Humps in OTDR trace Lamda Zero PMD Whitish Scratches Air Bubbles % of total 20.3 16.5 13.4 11.7 11.3 10.7 6.9 3.8 3.1 1.0 0.3 0.3 0.3 0.3 cumulative 20.3 36.8 50.2 61.9 73.2 83.8 90.7 94.5 97.6 98.6 99.0 99.3 99.7 100.0

Pareto Graph

% Of T otal NCRs 22 2 .2 22 2 .2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2
Cladding Lumps Cutoff Wavelength Humps in OTDR trace Lamda Zero P MD Whitish Scratches Air Bubbles

2 .2 2

2 .2 2

2 .2 2

2 .2
Coating Steps Fiber Break Bending in Attenuation Curve C . C . E Attenuation

2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 2 .2 2 22 2 .2 % of total cumulative 2 2 2 2 2 .2 .2 .2 .2 .2

2 .2 2 2 2 .2 2 .2 2 2 .2 2 2 2 .2 2 2 .2 2 2 2 .2 .2 .2

Pareto Analysis for Drawn Fiber NCRs

T ype Of Non Conformance