Pareto Analysis Sample

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Pareto Analysis (Cont.) How do we use the tool? Pareto analysis, while may seem complex to some can be explained in an approachable way by looking at the step by step process of using the analysis to solve different problems concurrently. There are 6 steps that need to be followed, starting from identifying the problems to taking the reasonable actions to solve them respectively. Step 1 – Identify the problems In order to identify the problems, it is advisable to talk to people ranging from the clients to the employees, by means of surveys, questionaires if applicable as all opinions matter in understanding the problems worthy of solving. Input from the team members may be essential too and different team members may approach different groups of people. Step 2 – Identify the root cause for each problem After listing down all the problems, the team members are to find the fundemental cause of each one of the problems. More than one method may be used and such methods include; brainstorming, 5 Whys and Cause and Effect analysis (Ishikawa Diagrams) Step 3 – Score problems Having all the root causes listed down; it is time to score them. The scoring method will be based on what sort of problem are they trying to solve. For example, if they are aiming to increase their profit, they should be focusing on causes that lead to excessive expenses, and give higher score for these problems. However. If their focus is to satisfy the customers, they may give higher scores for causes that if eliminated, will significantly reduce the number of customers' complaints. Pareto Analysis (Cont.) How do we use the tool? (Cont.) Step 4 - Group problems Some problems may have arisen due to the same root cause. The next step in Pareto Analysis is to group problems with the same cause together. Step 5 - Add up the scores All the scores respective
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