Earlier when we talked about Check Sheet we took an example of this water bottle company where water 2
bottle of 300 ml 500 ml and thousand milliliters. 3
These were being packed and we were checking the types of defects in each of these bottles. At the bottom 4
we have the summary which tells that five items were related to one particular type of problems, eighteen items 5
are related to lose cap and so on. 6
Based on that total aggregate number aggregate of all these volumes of bottles. 7
I'm not going into the details of volumes. 8
I've just made a simple pareto chart for all the volumes included. 9
So here you see that example of pareto chart. 10
Here the first bar on the left which is the highest bar 11
is related to lose cap. 12
And here if you see there were 18 problems out of thrity six problems that means 50 percent 13
of the problems were loose. 14
cap problems, so 15
that bar is on the left most. 16
And if you look at the percent of that it shows that 50 percent of the problems are because of lose 17
cap. 18
So one thing you see here is that the bars are arranged in descending order and at the bottom you see 19
the percent related to each of these problems, loose cap 50 percent problems. 20
Wrong label 22 percent problems, scratches thirteen point nine percent problems and so on. 21
You also look at cumulative of these and why do we need cumulative, we need cumulative to put a line at 22
80 percent because what we want to do is we want to look at 80 percent and left of that because those 23
will be the problems limited number of problems leading to more issues. 24
So each here if I put a line at 80 percent my line will just cover these two items which are a loose 25
cap and a wrong label. 26
These two problems 27
if you solve will cover your 72 percent problems rather than working on five issues. 28
You just work on these two issues. 29
So that's how you use Pareto Chart to identify the key issues. 30
So this was our tool number four which was Pareto Chart.