Quality Progress - January 2016 - (Page 35)

Best of BACK TO BASICS Separate the Vital Few From the Trivial Many SEPTEM 2001 BER A Pareto diagram can help you decide which improvement efforts to make first by Melissa G. Hartman 120 600 1.00 0.80 500 0.80 0.40 0.20 I Dirty Needs Not Too maintenance ready noisy Category of complaint S E P T E M B E R 2 0 0 1 I Pareto Diagram by Total Cost of Complaints 1.00 0.60 Not stocked FIGURE 2 0.00 Too No few beds special accommodations W W W . A S Q . O R G 400 0.60 300 0.40 200 0.20 100 0 Too noisy Cumulative percentage 45 40 35 30 25 20 15 10 5 0 Pareto Diagram by Number of Complaints Cumulative percentage Number of complaints FIGURE 1 3. Gather data and place them TABLE 1 Customer Complaints into one of the categories. About Hotel Rooms 4. Enter the categories, counts and cumulative frequency into a Number of Cost of each table or spreadsheet. This is a Category of complaint complaints complaint summary step that prepares the Room dirty 32 $9 data for the Pareto diagram. Room not stocked 41 $5 The data in Table 1 depict the Room not ready 12 $30 occurrence and cost of cusRoom too noisy 10 $50 tomer complaints at a small Room needs maintenance 17 $17 Too few beds 9 $12 hotel. The seven categories of No special accommodations 2 $35 complaints are in the first column, the number of complaints in the most recent month is in Calculate total cost by multiplying the the second column, and the approxicost of each complaint by the number of mate average cost of resolving each occurrences. According to Figure 2, the complaint is in the third column. most costly complaints are the rooms are 5. Develop the diagram. Figure 1 shows too noisy or are not ready when the guest the categories of complaints in arrives. This diagram requires a differdescending order. The number of ent type of response from the one complaints is on the left axis. A indicated by Figure 1. cumulative percentage distribution- Pareto diagrams are useful in situathe line going upward from the first tions where there are categorical data. category-is scaled on the right axis. The diagrams are easy to develop and This shows the proportion of the provide powerful insight into organitotal number of complaints accountzational problems. ed for as each successive category is added. REFERENCES 6. Interpret the diagram. The most fre1. Joseph M. Juran, Juran on Leadership for quent complaints shown in Figure 1 Quality (New York: The Free Press, 1989). 2. James R. Evans and William M. Lindsay, The are that the room is not stocked or is Management and Control of Quality (Cincinnati: dirty. These two categories account South-Western College Publishing, 1999). for about 59% of the total com3. Nancy R. Tague, The Quality Toolbox plaints. An appropriate action in (Milwaukee: ASQ Quality Press, 1995). response to this information might be to investigate housekeeping pracMELISSA G. HARTMAN is assistant professor tices and identify opportunities for of management at Baker University School of standardization and improvement. Professional and Graduate Studies in Overland However, if your goal is to reduce the Park, KS. Hartman is an ASQ Fellow and certotal cost of complaints, a Pareto diagram tified quality manager, quality engineer, quality auditor and mechanical inspector. QP can provide a different perspective. Category cost Pareto diagrams graphically depict categorical data. A Pareto diagram is a bar graph, and each bar represents a category. The bars are rank ordered in descending order from left to right. The bar on the left represents the category with the greatest value, and the bar on the right the category with the least value. The tallest bar is always on the left and the shortest on the right. Pareto diagrams are based on the principle of separating the vital few from the trivial many. This Pareto principle was developed by Joseph Juran, based on the work of Italian economist Vilfredo Pareto (18481923).1, 2 Pareto determined 85% of the wealth in Milan was owned by 15% of the citizens. Similarly, Juran observed that a majority of organizational effects resulted from just a few causes. Today, the Pareto principle implies 80% of process problems can be accounted for by 20% of process factors. The premise behind the diagram says process improvement efforts will be more effective if the categories on the left (the vital few) are addressed first. The rank ordering of categories simplifies detection of the vital few. Follow these simple steps to construct a Pareto diagram:3 1. Decide which categories will be used for grouping, such as the quantity of each type of lab test or reasons for patient falls. 2. Decide how you will measure the categories. Common measures include the number of occurrences in each category or total cost of the occurrences in each category. 0.00 Not Too No stocked few beds special accommodations Category of complaint Not Needs Dirty ready maintenance January 2016 * QP 35

Table of Contents for the Digital Edition of Quality Progress - January 2016

According to Plan
Solid Proof
Use Your Head
Stakeholder Management 101
Customer Delight
All About Data
Eight Simple Steps
Minimizing Chaos
Take Note
Pyramid Scheme
Assessing Failure
Which Six Sigma Metric Should I Use?
Turning ‘Who’ Into ‘How’
In the Beginning
Outputs and Outcomes
That’s So Random—Or Is It?
Understanding Variation
Improving a System
Putting It All on the Table
Know the Drill
It’s Fun To Work With an F-M-E-A
Solve Problems With Open Communication
Tell Me About It
Separate the Vital Few From the Trivial Many
To DMAIC or Not to DMAIC?
Breaking It Down
Smart Charting
1 + 1 = Zero Defects
QFD Explained
Curve Your Enthusiasm
Make a Choice
What Is a Fault Tree Analysis?
Successful Relationship Diagrams
The Benefits of PDCA
Creative Combination
Return on Investment
The Art of Root Cause Analysis
Why Ask Why?
Get to the Root of It
Checks and Balances
Calculated Risk
Sufficient Evidence
Sample Wise
Clearing SPC Hurdles
Supplier Selection and Maintenance
Team Advantage
Building a Quality Team
Plan Experiments to Prevent Problems
Substantiation Test
Training Day

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