Types

Types of 7QC tools

Check Sheet

Pareto Diagram

Cause & Effect diagram

7 QC Tools Graph &Control charts

Histogram

Scatter Diagram

Stratification
Pareto
 Pareto

Now let’s look at the second innings score board:

India
SS Das hit wicket b Gillespie 39
S Ramesh c ME Waugh b Warne 30
VVS Laxman c Ponting b McGrath 281
SR Tendulkar c Gilchrist b Gillespie 10
SC Ganguly c Gilchrist b McGrath 48
R Dravid run out 180
N R Mongia b McGrath 4
Zaheer Khan not out 23
Harbhajan Singh not out 8
Total 657
 Pareto

When we observe which batsmen got the maximum runs

we can see that Laxman & Dravid got 461 out of the 657
runs. That is about 70% of the runs.
22% of the 9 batsmen who batted got 70% of the runs!

Let’s now observe the Australian 2nd innings score card

 Pareto

Australia
M Hayden lbw b Tendulkar 67
M Slater c Ganguly b Harbhajan 43
J Langer c Ramesh b Harbhajan 28
M Waugh lbw b Raju 0
S Waugh c Sub B Harbhajan 24
R Ponting c Das b Harbhajan 0
A Gilchrist lbw b Tendulkar 0
J Gillespie c Das b Harbhajan 6
S Warne lbw b Tendulkar 0
M Kasprowicz not out 13
G McGrath lbw b Harbhajan 12
Total 212
 Pareto

Who got the wickets?

O M R W
Zaheer Khan 8 4 30 0
V Prasad 3 1 7 0
Harbhajan Singh 30.3 8 73 6
V Raju 15 3 58 1
S Tendulkar 11 3 31 3
S Ganguly 1 0 2 0
 Pareto

When we observe which bowlers got the maximum wickets

we can see that Harbhajan & Tendulkar got 9 out of the 11
wickets. That is about 80% of the wickets.

30% of the 6 bowlers who bowled got 80% of the wickets!

This illustrates the Pareto principle

 Pareto

Pareto

• Vilfredo Pareto was an Italian engineer in the 19th Century

who studied the number of people in various income classes &
declared
‘’20% of the people own 80% of the country’s wealth;
80% of the people own 20% of the country’s wealth”
 Pareto

Pareto Principle
Pareto principle holds good to the present day in various
applications
‘ A few causes lead to many defects;
many causes lead to few defects.’

The few causes that lead to many defects are the vital few.

The many causes that lead to few defects are the trivial many.
 Pareto

“Get to the biggest problems first”

‘Solve the vital few’

 Pareto

Creating a Pareto Diagram

200 98.5 99.5 100 100
97.5
95.5
93.5
91
175 88
84
79
150 75
73

65.5
125
55.5

In nos

In %
100 50

75 66
33

50 45 25

25 20
15 12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
Dept

Steps 1. Collect data

2. Arrange data in the descending order

3. Calculate the relative % for individual data

4. Calculate the cumulative % for individual data

5. Draw a graph with scales on both axis

6. Draw bar chart based on data

7. Using cumulative % data, draw cumulative curve

8. Identify the VITAL FEW (thumb rule > 70%)

 Pareto
200 98.5 99.5 100 100

Data collection through check sheet

97.5
95.5
93.5
91
175 88
84
79
150 75
73

65.5
125
55.5

In nos
STEP 1

In %
100 50

75 66
33

Period : Week No. 45 To 50

50 45 25

25 20
15 12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
No. Of External Phone Calls
Dept

Sl.No Department No. Of cells regd.

1 Production Engineering 10
2 Quality 2
3 Service 12
4 Marketing 45
5 Plant Maintenance 20
6 Factory production 2
7 Manufacturing Planning 1
8 Stores 5
9 Personnel 8
10 Materials 66
11 Finance 15
12 Research & Development 4
13 Information & Systems 6
14 Others 4
 Pareto
200 98.5 99.5 100 100
97.5
95.5
93.5
91
175 88
84

Arrange data in the descending order

79
150 75
73

65.5
125
55.5

In nos
STEP 2

In %
100 50

75 66
33

50 45 25

25 20
15

No. Of External Phone Calls

12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
Dept

Sl.No Department No. Of cells reqd.

1 Materials 66
2 Marketing 45
3 Plant Maintenance 20
4 Finance 15
5 Service 12
6 Production Engineering 10
7 Personnel 8
8 Information Systems 6
9 Stores 5
10 Research & Development 4
11 Others 4
12 Quality 2
13 Factory production 2
14 Manufacturing Planning 1
200
 Pareto
200 98.5 99.5 100 100
97.5
95.5
93.5
91
175 88
84

Calculate the relative % for individual

79
150 75
73

65.5
125
55.5

In nos
STEP 3

In %
100 50

75 66
33

50 45 25

25 20
15

No. Of External Phone Calls

12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
Dept

Sl.No Department Nos. Relative %

1 Materials 66 33.0
2 Marketing 45 22.5
3 Plant Maintenance 20 10.0
4 Finance 15 7.5
5 Service 12 6.0
6 Production Engineering 10 5.0
7 Personnel 8 4.0
8 Information Systems 6 3.0
9 Stores 5 2.5
10 Research & Development 4 2.0
11 Others 4 2.0
12 Quality 2 1.0
13 Factory production 2 1.0
14 Manufacturing Planning 1 0.5
200
 Pareto
200 98.5 99.5 100 100
97.5
95.5
93.5
91
175 88
84

Calculate the cumulative % for individual

79
150 75
73

65.5
125
55.5

In nos
STEP 4

In %
100 50

75 66
33

50 45 25

25 20
15

Data No. Of External Phone Calls

12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
Dept

Sl.No Department Nos. Relative % Cumulative %

1 Materials 66 33.0 33.0
2 Marketing 45 22.5 55.5
3 Plant Maintenance 20 10.0 65.5
4 Finance 15 7.5 73.0
5 Service 12 6.0 79.0
6 Production Engineering 10 5.0 84.0
7 Personnel 8 4.0 88.0
8 Information Systems 6 3.0 91.0
9 Stores 5 2.5 93.5
10 Research & Development 4 2.0 95.5
11 Others 4 2.0 97.5
12 Quality 2 1.0 98.5
13 Factory production 2 1.0 99.5
14 Manufacturing Planning 1 0.5 100.0
200 100
 Pareto

Sl.No Department Nos. Relative % Cumulative %

1 Materials 66 33.0 33.0

VITAL FEW
2 Marketing 45 22.5 55.5
3 Plant Maintenance 20 10.0 65.5
4 Finance 15 7.5 73.0
5 Service 12 6.0 79.0
6 Production Engineering 10 5.0 84.0
7 Personnel 8 4.0 88.0
8
9
Information Systems
Stores TRIVIAL
6
5
3.0
2.5
91.0
93.5

MANY
10 Research & Development 4 2.0 95.5
11 Others 4 2.0 97.5
12 Quality 2 1.0 98.5
13 Factory production 2 1.0 99.5
14 Manufacturing Planning 1 0.5 100.0
200 100
 Pareto

Sl.No Department Nos. Relative % Cumulative %

1 Materials 66 33.0 33.0
2 Marketing 45 22.5 55.5
3 Plant Maintenance 20 10.0 65.5
4 Finance 15 7.5 73.0
5 Others 60 27 100
200 100
 In nos

30
60
90

0
120
150
180

66
Materials

45
Marketing

20

Plant Maintenance

Dept
15

Finance
54

others
Pareto
 In nos

120
150
180

0
30
60
90
66
Materials

33
45
Marketing
55.5

20

Plant Maintenance

Dept
65.5

15

Finance
73

54

others
100

0
25
50
75
100

Cumulative %
Pareto
 Pareto

100 100
Vital
180 Few

150 70 % 73
75

65.5
120

Cumulative %
55.5
In nos

50
90

66
33
60 54
45 25

30 20
15

0 0
Maintenance
Marketing

Finance
Materials

others
Plant

Dept
 Pareto

Why pareto ?

• To Clearly prioritise the magnitude of the problem.

• To identify the vital few and trivial many problems.

• To find 80/20 rule which states that 80% of the

problems are created by 20% of the causes.

 Pareto

Pareto diagram is used to find out …

200 98.5 99.5 100 100
97.5
95.5
93.5
91
175 88
84
79
150 75
73

65.5
125
55.5

In nos

In %
100 50

75 66
33

50 45 25

25 20
15 12 10 8 6 5 4 4 2 2 1
0 0

Stores

Others

production
Quality
Materials

Service

Personnel
Finance
Marketing

Manufacturing
Developm ent
Maintenance

Engineering

Information
Production

Research &
System s

Factory

Planning
Plant
Dept

1. The most important problem

2. The rate of each problem to the whole

3. The degree of improvement action

4. The comparison of improvement level

5. Before & after remedial action taken

 Pareto

Same problem, but different approach…

You have to cut down your

house expenditure by 20% / month
How will you do it ?

Pareto
 Pareto

Make a check list of all the expenses

in your home & the amount you
spend on these expenses
 Pareto

Sl.No Expense Amount

1 House Rent 3000
2 Electricity Bill 500
3 Water Bill 280
4 Cable TV Bill 210
5 News paper bill 120
6 Milkman 300
7 Maid servant 150
8 Groceries 2000
9 Entertainment & Lifestyle 1500
10 Travel 200
11 Educational 1500
12 Hospital 200
13 Insurance Premium 500
14 Loan repayment 0
15 Clothes 200
16 Petrol 1300
17 Others 300
 Amount 10000
12000

0
2000
4000
6000
8000
Ho
u se
R
en
t

G
ro
ce
r ie
s
En
te
rta
in
m
en
t
Ed
uc
at
io
na
Expenses

Pe
tro
l

O
th
er
s
0
10
20
30
40
50
60
70
80
90
100

Cumulative %