Pareto Chart - How to Interpret the Result from a Pareto Chart Effectively

"Pareto Chart" or "Pareto Analysis" was introduced by a famous economist "Vilfredo Pareto". Pareto chart is a bar chart for ranking aspects of the problem. Typically only a few aspects make up a significant portion of the problem while many trivial aspects exist. Training on Six Sigma Green Belt in Delhi by Advance Innovation Group, helps you understand one of the most useful 7 QC tools called Pareto. It is based on Pareto principals which are also known as 80/20 principal. According to that principle, 20% of our problems lead to other 80% of the problem or defects so rather than concentrating on 80% of our problems. Or if we talk about economy 80% of the wealth in the hands of about 20% of the people. Similarly, a large percentage of errors or defects in any process is usually due to few problems. Pareto principle helps you to identify those significant vital problems so that process improvement team can target them for taking improvement actions. So Pareto analysis particularly can help you in the measure phase and control phase of Six Sigma methodology however it can be used anywhere in the process whenever required to prioritize things.

Training on Six Sigma Green Belt in Delhi by Advance Innovation Group, helps you understand that in the six sigma project there are so many areas of work that can be improved, but most of the time it is very difficult in deciding from where to start. So Pareto analysis helps you in categorizing and stratifying such things as defects, error, customer complaints, delays, or any other factors of the resulting quality parameters of your process so that you can identify different stages or types of problems. The pareto analysis also displays graphically your output so that the significant few vital problems emerge from the general background. So first we need to categories our problems and for this, we need to look at the reasons for defects or rejections or rework by taking the opinion of the customer by understanding their needs and then we need to list down the problem categories with the information of occurrence (number of times). So if we start working on 20% of our vital problems we can avoid lots of trouble and we can save lots of time. For example, in fishbone diagram, end bone of the fish is the root cause of the main problem, so if we start working on that root cause then the main problem would be solved automatically because they are interrelated. So Six Sigma Green Belt training in Delhi will focus on the usage of Pareto chart to prioritize things and the most prioritized problem should be treated first. In my opinion, Pareto chart can also be termed as "Risk Management Tool" or "decision-making tool" because it enables management to concentrate on those risks which are having the most impact on business.

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