Pareto analysis-simplified J.Skorkovský, KPH. What is it ? tool to specify priorities which job have to be done earlier than the others which rejects.

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Presentation transcript:

Pareto analysis-simplified J.Skorkovský, KPH

What is it ? tool to specify priorities which job have to be done earlier than the others which rejects must be solved firstly which product gives us the biggest revenues 80|20 rule

How to construct Lorenz Curve and Pareto chart list of causes (type of rejects) in % table where the most frequent cause is always on the left side of the graph RejectTypeImportanceImportance (%) Accumulative (%) 1 Bad size 1071% 71 %=71% 2 Bad material 321 % 92%=71%+21% 3 Rust 18% 100 %=92%+8% Comment 1 : =14 Comment 2 : 71 % = 10/14; 21%=3/14 …..

Pareto chart Lorenz curve High priorities 71% 21% 8% 92% 100%

Thanks for your attention Skorkovský