pareto analysis hamza

7/25/2019 Pareto Analysis Hamza

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PARETOANALYSIS

: .Madeby M Hamza :Submittedto SirMaqboolurRehman

:Course Adan!eMana"erialA!!ountin"


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Defnition

Pareto Analysisis a statistical technique indecision-making used or the selection o a limitednumber o tasks that produce signifcant overalleect. It uses the ParetoPrinciple (also knon as

the !"#$" rule% the idea that b& doing $"' o theork &ou can generate !"' o the beneft o doingthe entire ob.


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Pareto )nal&sis is a simple technique or prioriti*ing

possible changes b& identi&ing the problems that illbe resolved b& making these changes. +& using this

approach, &ou can prioriti*e the individual changesthat ill most improve the situation.


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Thiste!hniquehel#stoidenti$ytheto#20% o$!ausesthatneedstobeaddressed 80% .toresole the o$ the #roblems


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Thealueo$theParetoPrin!i#le$ora#ro%e!tmana"eristhat

20% .it reminds youto $o!us on the o$ thin"s that matter O$

, 20%thethin"s you dodurin"your#ro%e!t only arereally. 20% 80% .im#ortant Those #rodu!e o$ your results Identi$y , 'and $o!usonthosethin"s&rst but don t totally i"nore the

80% .remainin" o$ !auses


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Historyo$ParetoAnalysis

,TheParetoe'e!t isnameda$ter(il$redoPareto ane!onomistand 1848 1923.so!iolo"ist )holied $rom to


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Thismethodstemsinthe&rst#la!e$romPareto*ssu""estiono$a!ureo$the 1896. ,distributiono$)ealthina boo+ o$ ,hateer the sour!e the #hraseo$

-theital$e)andthetriialmany*deseresa#la!eineerymana"er*s. .thin+in" Itisitsel$one o$the mostital!on!e#tsinmodernmana"ement

.Theresultso$thin+in"alon"Paretolinesareimmense


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HO,TO.SEIT?


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1:Ste# Identi$y and ListProblems 2:Ste# Identi$y the RootCauseo$ Ea!h Problem

3:Ste# S!ore Problems

4:Ste# /rou# ProblemsTo"ether 0yRootCause

5:Ste# Addu# the S!ores$or Ea!h /rou#

6:Ste# Ta+e A!tion


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TheParetoChart

APareto!hartisa

"ra#hi!alre#resentationthatdis#laysdatainorder

.o$#riority


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Thisisasim#lee1am#leo$aParetodia"ramusin"sam#ledata .sho)in"therelatie$requen!y o$!auses$orerrorson)ebsites It 20% 80%enables you to see )hat o$ !ases are !ausin" o$ the

#roblemsand)heree'ortsshouldbe$o!usedtoa!hieethe ."reatestim#roement


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SomeProblems

2i3!ultiesasso!iated)ith#aretoanalysis .Misre#resentationo$thedata

.Ina##ro#riatemeasurementsde#i!ted

.La!+o$understandin"o$ho)itshouldbea##liedto#arti!ular#roblems

.4no)in")henandho)touseParetoAnalysis

.Ina!!urate#lottin"o$!umulatie#er!entdata


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Oer!omin"thedi3!ulties

2e&nethe#ur#oseo$usin"thetool.Identi$ythemosta##ro#riatemeasurement#arameters..se!he!+sheetsto!olle!tdata$ortheli+elyma%or!auses.

Arran"ethedataindes!endin"ordero$alueand% /!al!ulate $requen!y and or!ostand !umulatie#er!ent.Plotthe!umulatie#er!entthrou"htheto#ri"htsideo$

the&rstbar.

.Care$ully s!rutinizetheresults Hasthee1er!ise!lari&edthesituation?


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ParetoAnalysisE1am#le

,Ahmethasta+enoera$ailin"seri!e!enter )ithaloto$#roblemsthat . .needresolin" Hisob%e!tie isto in!reaseoerall!ustomer satis$a!tion

Hede!idestos!oreea!h#roblembythenumbero$!om#laintsthatthe

.!enterhasre!eied$orea!hone


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##ProblemProblem

( 1 )Ste#( 1 )Ste#

(Cause Ste#(Cause Ste#2 )2 )

(S!ore Ste# (S!ore Ste#3 )3 )

11

Phonesaren*tPhonesaren*tans)eredqui!+lyans)eredqui!+ly

.enou"h.enou"h

Too$e)seri!eToo$e)seri!e .!entersta'.!entersta'

1515

22Sta'seemSta'seem

distra!tedanddistra!tedand .under#ressure.under#ressure

Too$e)seri!eToo$e)seri!e .!entersta'.!entersta'

66

33En"ineersdon*tEn"ineersdon*t

a##eartobe)ella##eartobe)ell.or"anized They.or"anized Theyneedse!ondisitsneedse!ondisits

tobrin"e1tratobrin"e1tra.#arts.#arts

Pooror"anizationPooror"anization

.and#re#aration.and#re#aration 44

E i d *tE i d *t


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44

En"ineersdon*tEn"ineersdon*t+no))hattime+no))hattime

.they*llarrie This.they*llarrie Thismeansthatmeansthat

!ustomersmayhae!ustomersmayhaetobeinallday$orantobeinallday$oran

.en"ineertoisit .en"ineertoisit

Pooror"anizationPooror"anization .and#re#aration.and#re#aration

22

55

Seri!e!entersta'Seri!e!entersta'don*tal)aysseemtodon*tal)aysseemto

+no))hatthey*re+no))hatthey*re.doin".doin" .La!+o$trainin" .La!+o$trainin" 3030

66,henen"ineers,henen"ineers,isit the!ustomer,isit the!ustomer

&ndsthatthe&ndsthatthe#roblem!ouldhae#roblem!ouldhae

beensoledoerthebeensoledoerthe.#hone.#hone

.La!+o$trainin" .La!+o$trainin" 2121


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( 4 5).Ahmet then "rou#s#roblems to"ether ste#s and Hes!oresea!h , :"rou#bythenumbero$!om#laints andordersthelistas$ollo)s

. ( 5 6) 51 .La!+ o$trainin" items and 5 !om#laints

$. ( 1 42) 21 .Too$e)seri!e !entersta' items and 5 !om#laints. ( 3 4) 6Poor or"anizationand#re#aration items and 5 !om#laints


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1.6i"ure Ahmet*s ParetoAnalysis


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Itisthedis!i#lineo$or"anizin"thedatathatis!entraltothesu!!esso$usin"

. ,ParetoAnalysis On!e!al!ulatedanddis#layed "ra#hi!ally itbe!omesa ,sellin"tooltotheim#roementteamandmana"ement raisin"the

question whytheteamisfocusingitsenergiesoncertainaspectsoftheproblem.


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/i0 /igma 10ample


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pareto analysis hamza

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