the pareto principle
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Extruded Rubber Automotive Door Seals NonconformancesNonconformance (nonconformance)Number of Nonconforming Parts (qty)Percentage of Nonconformances (%)QuantityCumulative Pct
No Bonds12046.692607003891
Splits/Tears5066.147859922179
Pinching4081.7120622568093
Incorrect Length3093.3852140077821
Missing Clips1097.2762645914397
Worn7100
The Pareto Principle: Separating Out The Vital Few From The Many
Rahul Laxman IyerASQ Certified Quality EngineerMesa AZ USAHttphttp://www.linkedin.com/in/rahuliyer
11/03/2015
What Is The Pareto Principle?
For many events, roughly 80% of the effects come from 20% of the causes
A principle applied in modern business and quality
Provides a methodology to separate the noise from the data when making decisions
Adopted in many processes, particularly in manufacturing
History of The Pareto Principle
Coined by Joseph M Juran, a Management Consultant
Named after economist Vilfredo Pareto, University of Lausanne
1896: published a paper Cours d'conomie politique
Showed the 80% of the land in Italy was owned by 20% of the population
Showed that 80% of the germinated peas in a garden come from 20% of the peapods
Application of The Pareto Principle
Translated Into a Pareto Diagram
Graphical Technique & Statistical Technique
Use to Identify the vital few (20%) of causes to focus on
Quality Assurance & Automotive Industry was an early adopter
The Pareto Diagram
Example of a Pareto Diagram for Manufacturing & Quality
The point representing 80 / 20 regarding the effects verses causes
Results Achieved by Applying The Pareto Principle
Learn Where the Bulk of The Nonconformances Occur in a Process
Learn Where to Apply the Limited Resources to Target Improvements
Learn Where to Apply the Limited Resources to Obtain the Greatest Return on Investment (ROI) Regarding any Quality & Process Improvements
Conclusion
Definition of The Pareto Principle
History of The Pareto Principle
Application of The Pareto Principle
The Pareto Diagram
Results Achieved by Applying The Pareto Principle
Contact Me!!!!
I want to help your organization to Improve Quality, Reduce Delivery Times, and Save You Money
Rahul Iyer, ASQ-CQE
https://www.linkedin.com/in/rahuliyer
220 North 22nd Place Unit 1008
Mesa AZ 85213-8380 USA
Tel: +1-623-570-2848
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