PARETO ANALYSIS

Dr. Md. Tamzidul Islam

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 What is Pareto Analysis?
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 Is a prioritizing technique of problems/causes.

 It separates the “vital few” from “ trivial many”.
 Provides direction for improvement.
 Also very popularly known an 80-20 Rule and
consequently, ABC classification.
 Causes of delay in class
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Sl Reasons Frequency
1 Traffi c 110
2 Don’t have proper routine for sleeping 5
3 Had a plan with friends 98
4 Not interested in academic affairs 12
5 Lecture is boring 8
6 Family issue 5
7 Depression 6
8 Wasn’t feeling good 2
9 I don’t care 8
10 Don’t find it useful for future 6
11 I don’t know 4
 Classroom Exercise
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Suppose you are conducting a survey to identify major areas of customer dissatisfaction
Of a restaurant. After collecting customer feedback, the restaurant identified following
Causes of dissatisfaction:
No. Areas of dissatisfaction Number of
customers
1 Food taste 74
2 Less variety 10
3 Less promotional offer 56
4 Unhygienic kitchen 5
5 Too much noise 7
6 Unprofessional staffs 5
7 Delivery time 3
8 No home delivery option 4
9 No parking space 2
10 Any other 1
 Apply in the Project work

• Extract data into Excel

• Prepare a table and apply 80-20 rule
• Prepare graph/chart based on the table