One of the best technical tools for

improving product and service quality is

statistical process control (SPC).

This technical tool not only controls

the process but has the capability to
improve it as well.
 Alfredo Pareto (1848-1923)

 A Pareto diagram is a graph that ranks

data classifications in descending order
from left to right.
 It is used to identify the most important
problems.
 The most important items could be
identified by listing them in descending
order. However, the graph has the
advantage of providing a visual impact,
showing those few characteristics that
need attention.
 Resources are then directed to take the
necessary corrective action.
The left vertical axis is the frequency of occurrence, but it can alternatively
represent cost or another important unit of measure. The right vertical axis is
the cumulative percentage of the total number of occurrences, total cost,
or total of the particular unit of measure. Because the reasons are in
decreasing order, the cumulative function is a concave function. To take
the example below, in order to lower the amount of late arrivals by 78%, it is
sufficient to solve the first three issues.
Examples of vital few:

 A few customers account for the majority of sales.

 A few processes account for the bulk of the scrap or
rework cost.
 A few nonconformities account for the majority of
customer complaints.
 A few suppliers account for the majority of rejected
parts.
 A few problems account for the bulk of the process
downtime.
 A few products account for the majority of the profit.
 A few items account for the bulk of the inventory cost.

 Construction of a Pareto diagram is very
simple. There are five steps:
1. Determine the method of classifying the data:
by problem, cause, nonconformity, & so forth.
2. Decide if dollars, frequency, or both are to be
used to rank the characteristics.
3. Collect data for an appropriate time interval
or use historical data.
4. Summarize the data and rank order
categories from largest to smallest.
5. Construct the diagram and find the vital few.
*Note that a quality improvement of the
vital few is a much greater return on
investment than improvement of the useful
many.
• Experience has shown that it is easier to
make a 50% improvement in the vital
few.
 The use of the Pareto diagram is a never-
ending process.

 The Pareto diagram is a powerful quality

improvement tool. It is applicable to
problem, identification and the
measurement of progress.
 The diagram shows the flow of the product
or services as it moves through the various
processing operations.
 The diagram makes it easy to visualize the
entire system, identify potential trouble
spots, and locate control activities.
 It answers the question, “Who is the next
customer?”
 Improvements can be accomplished by
changing, reducing, combining, or
eliminating steps.
 A cause and effect diagram is a picture
composed of lines and symbols designed to
represent a meaningful relationship
between an effect and its causes.

 It was developed by Dr. Kaoru Ishikawa in

1943 and is sometimes referred to as an
Ishikawa diagram or a fishbone diagram
because of its shape.
 C&E diagram are used to investigate
either a “bad” effect and take action to
correct the causes or a “good” effect
and to learn those causes that are
responsible.
 For every effect, there are likely to be
numerous causes.
• Each major cause is further subdivided
into numerous minor causes.
• C&E diagram are the means of picturing
all the major & minor causes.
 The first step in the construction of a C&E
diagram is for the project team to identify
the effect or quality problem.
 Next, the major causes are identified and
placed on the diagram.
 Once the C&E is complete, it must e
evaluated to determine the most likely
causes.
 Solutions are developed to correct the
causes & improve the process.
 If the team agrees on solutions, testing &
implementation follow.
 Diagram are posted in key locations
to stimulate continued reference as
similar problems arise.

 Thediagram are revised as solutions

are found & improvements are made.
The diagram are useful to:
1. Analyze actual conditions for the purpose
of product or service quality improvement,
more efficient use of resources, & reduced
costs.
2. Eliminate conditions causing
nonconformities & customer complaints.
3. Standardize existing & proposed
operations.
4. Educate & train personnel in decision-
making & corrective action activities.
 The main purpose of check sheets is to
ensure that the data is collected
carefully & accurately by operating
personnel.
 Data should be collected in such a
manner that can be quickly & easily
used & analyzed.
 The form of the check sheet is
individualized for each situation & is
designed by the project team.
 Whenever possible, check sheets are
also designed to show location.

 Creativity plays a major role in the design

of a check sheet. It should be user-
friendly & include information on time &
location.