The above Pareto diagram summarizes the percentage of defects discovered in computer

keyboard products of a large injection-molding company during a three-month period.

1. What is the main characteristic of a Pareto diagram?
- In a Pareto diagram,
+ the categorized responses/data groups are plotted/presented in descending order,
according to their frequencies, and
+ they are combined with a cumulative percentage line on the same chart. The
cumulative line is plotted at the midpoint of each bar, at a height equal to the
cumulative percentage.
- The Pareto diagram can identify situations in which the Pareto principle occurs.
2. Interpret the above Pareto diagram.
- The first category listed is warpage (with approximately 31% of the defects – the
highest percentage), followed by damage (with about 16%), followed by pin mark
(with about 13%).
- The two most frequently occurring categories warpage and damage account for
nearly 50% of the defects; the three most frequently occurring categories warpage,
damage, and pin mark account for more than 60% of the defects, and so on.
3. How can be the Pareto principle applied in this case? What is the implication for the
manufacturing company in order to improve its product’s quality?
- The Pareto diagram has the ability to separate the vital few from the trivial many,
enabling you to focus on the important categories. In situations in which the data
involved consist of defective or nonconforming items, the Pareto diagram is a powerful
tool for prioritizing improvement efforts.
- Because the categories in the Pareto diagram are ordered by the frequency of
occurrences, decision makers can see where to concentrate efforts to improve the
process, which is in accordance with the Pareto principle.
- Attempts to reduce defects due to warpage, damage, and pin marks should
produce the greatest payoff. Then efforts can be made to reduce scratches, black
spots, and silver streaks sequentially.