Guide (text/quality advantage Gao Yun)
Pareto rule, also known as 80/20 law. This rule tells us that 20% of the reasons determine 80% of the results .
The Pareto Rule, also known as the 80/20 Law. This rule tells us that 20% of the reasons determine 80% of the results. Although is sometimes not exactly 80% and 20%, the imbalance between the reasons and the results is indeed very widespread.
For example, most of the complaints originate from some critical defect, 20% of our time is productive, and the other 80% may be spent on tasks of little value.
In practical work, especially in manufacturing, we are able to take advantage of the Pareto law, which allows for faster and more effective quality improvement. However, the use of the Pareto Principle is not limited to this, and can be applied in how to choose performance measures, risk analysis, and even auditing.
01
How to get more value from Pareto chart
? The
Pareto chart is a core tool used to identify key issues. The chart combines bar and line charts to show the relative frequency or cost of different types of problems. For example, in the Pareto chart below, we can know with great certainty that prioritizing "broken" problems will improve quality. best effect.
Use the four key points of the Pareto chart:
- Use the second Y-axis. What this axis tells us is the cumulative percentage and helps us define the scope of our work. For example, in the same graph above, if our goal is to solve 50% of the problems, it is enough to focus on the first two defect categories. The classification of
- reasons needs to be specific. A common problem when drawing Pareto charts is that the classification is too general, for example, the defects are simply classified as electrical problems, and mechanical problems are not specific enough.
- But the classification should not be too detailed. If there are as many as 100 reasons in a Pareto chart, it will inevitably fail to focus.
- incorporates a Pareto chart. For example, if we want to get a complete picture of the quality of a critical component, it would be a good idea to combine the Pareto chart of design defects for that part with the Pareto chart of manufacturing process defects.
02
How to use the Pareto chart
to determine key quality KPIs?
Regarding quality, different quality departments and different subsidiaries have their own KPIs, these KPI items are not the same, and even the calculation methods are also different, so that a company may have dozens or hundreds of quality KPIs.
Pareto chart can also help us find the most common KPIs, so that there is a common quality measurement method, and has a common method to make mutual communication possible.
Three key points for developing quality KPIs:
- Simplified KPI matrix. establishes several key indicators instead of a dozen or dozens. These key indicators should be closely related to the overall business goals of the organization. The
- indicator has both lagging and leading indicators. For example, defect rate and quality cost are lagging indicators. When you know, the problem has already occurred. The number of continuous improvement projects and the timely completion rate of audits are leading indicators. If there is no continuous improvement and no timely audit, product quality may be affected in the future. .
- proactively communicates quality performance. promotes transparency so that all relevant personnel understand the current quality status and encourages everyone to participate in quality management. Building quality walls on site and building quality dashboards in the system are common and effective practices.
Finally, let's talk about the origin of Pareto's law.
Pareto (Pareto) is a person's name, He is an Italian economist, sociologist, not the ancient Greek philosopher Plato (Plato).
Vilfredo Pareto (Source: wikipedia)
Pareto is famous for his observation that 20% of the Italian population owns 80% of the property, But this Pareto Law was not proposed by him, but by Joseph Juran Generalized and refined by others.
