What is Pareto Chart and how to make it?

Where is the quality not there, if the quality of the food we eat every day is not good, then it is not fun to eat. This is the reason that sometimes we go out and eat our favorite food by going to the restaurant. Manufacturing companies give us our daily needs by making them, for which they take special care of their quality. In today’s post we will talk about What is Pareto Chart, With the help of which is used to control the quality. Although there are 7 tools in total in 7 QC tools, but Pareto Chart has its own role.

The world is changing very fast. There are different companies to make the same product. The competetion between them has increased considerably. In such a situation, if someone has to make a hold in the market, then the most important thing is that the quality of that product should be the best.

There are some products whose quality is not special but they are just marketing and Advertisement Lets become popular in the market. But what is most important is the quality and if a product does not have this, then people themselves reject it. This is the reason why a quality department is kept in every company. Whose job is to maintain the quality of the product and improve it as much as possible. 7 QC tools are very important tools in the quality department, using which manufacturing companies improve the quality of the materials being produced. In this, a tool has a very important role, which we will talk about here.

In today’s post we will know that What is Pareto chart and how to make it, Why use parteo chart And what is the benefit of this, we will know all these things in full detail.

What is Pareto Chart – What is Pareto Chart in Hindi

Pareto chart is a chart in which there are 2 types of graphs. bar And line graphs make use of. In this, using bars to represent each value, write it in decreasing order. While showing its cumulative total by line.

The Pareto Principle is presented in the form of a graph through the Pareto chart. Pareto chart is also called Pareto Diagram or Pareto analysis. this we 80-20 rule Also know by name.

Why is Pareto called 80-20 rule?

pareto chart The most important thing is that in this, when we plot the graph according to the data, then only through the 80-20 rule we can know that what are the main reasons among the quality issues that are coming. Which means that only 20% are the cause of 80% of the defects. If we find out about 20% of the cause and eliminate that cause, then 80% of the defects that are coming will end like this.

If you do not understand now, then I will explain it by giving some examples.

The population of our country India is about 125 crores now. Let’s say that out of this, only 20% i.e. 25 crore people have money and 80% i.e. 100 crore people are poor. Now if we want to remove poverty here, then if we distribute the money that 25 crore people have among 100 crore people, then poverty will be completely eradicated.

Now it comes to the conclusion that 100 crore people of India are poor because only 25 crore people have all the money equal to the people. At the same time, there is so much money that if you distribute it to the entire public, then everyone will become rich. That is, the biggest reason for poverty here is that only these 20% people have deposited all the money with them.

This is just taken as an example, don’t take it seriously.

Let us take another example to understand this. I work in a car manufacturing company and almost every month from here some defects go to the customer. Many defects are caught internally. So to prevent these defects, it is important to know that what is the reason for so many defects which are coming which are 20%. Now here we use Pareto chart only to know the reason.

As soon as 20% of the cause is detected, we get to know about 80% of the problems. Instead of working in 80%, we work on 20% cause so that 80% of the problems will be solved by themselves.

Why was this diagram/chart named Pareto?

The name of the person who brought this diagram to the world Vilfredo Pareto It was after whose name we call this chart as Pareto chart.

Why we use Pareto Chart – Why do we use Pareto Chart in Hindi

When a company does mass production of a product, then problems come. The job of the Quality Team is to find out the disturbances in the process at the time of mass production and eliminate the upcoming issues/defetcs. Although they have many tools to solve problems, Pareto diagram proves to be very good for identifying the problems and working on them on targetted lines.

By the way, what is the situation when pareto chart has to be used, let us know it in detail.

  • When any problem or cause is coming in a process, then it is used to analyze the data to know their frequency.
  • Mass Production comes with a lot of defetcs/problems. In such a situation, if the number of problems is very high, then it is not possible to resolve all these problems together. In such a situation, we only have to attack the main cause. At such times, pareto helps us to identify these major problems.
  • When you have to share your data with others for communication.
  • It is used to analyze the broad causes of a particular component.

How to make Pareto Chart?

To eliminate the problems coming in the process under quality control, first we need data. In this we can do data analysis in different ways. This can be done on the basis of material / product or if there are many problems, then analysis can be done on the basis of those problems also.

Let us understand this through an example. Here we will learn to analyze them on the basis of all the defects coming in the whole company. For this we will take 8 defects and prepare pareto chart on it and then find out the cause which are 20%.

Pareto Table Complete

  • Here in the first column we take the defect name.
  • According to the defects in the second column, their quantity has to be entered.
  • In the third column, we have to take Quantity in cumulative.
  • In the last ie 4th column, we take out the percentage of that cumulative quantity.

How to calculate Cumulative Quantity?

It is very easy to find the cumulative quantity, for this we keep the quantity of the first row the same. After that, in the second row of the column with cumulative quantity, we apply a formula so that our work is done. Here I have written quantity, although here we just have to select the box and keep the + sign in the middle. Keep in mind that before applying every formula in Excel, the sign of = must be used.

Cumulative quantity formula

Note: Now the most important thing to note here is that always keep Quantity in Descending Order only then do further work. If you do not write Quantity in decreasing order then your Pareto Sheet will not be correct.

Pareto Table Complete decreasing order

In this way, when our table is ready, then after that we have to make a chart. For this we will select the data which we need from this table here.

  • Here we will use Defect, Quantity and Cumulative Percentage % data to create Pareto Chart. First of all you have to select it. For this you press the Ctrl button.
  • After that select Menu bar – Insert – Bars – 2D bar.
  • Your chart will be ready.
  • We have to make some changes in this.
  • Select the first chart with Right Click – Change series type – Bar + Line in the blue colored bars.
  • We take the Cumulative Percentage which is in the form of Line.
  • After that, by right clicking and adding Data Labels, we also see the data values.

pareto chart

Finally let us customize our Pareto chart in this way.

  1. The blue line bar in it tells us the quantity of defects.
  2. Orange colorline shows the cumulative percentage.

How to find 20% cause from Pareto Chart?

When we make a table using all the data values ​​and then prepare the chart on the basis of that table, then it is time to find the defects on which we have to work with the help of that chart. For this, we have to find out which are the 20% causes which are the basis of the remaining 80% problems.

You must have known that a tree which we know as tree, its outer form is full of greenery but it remains alive only because of its root i.e. root. If we cut the root, the whole tree will die by itself. Pareto charts also work in a similar way. So after all, how to find out that too with the help of a chart?

Pareto Chart for Defect Analysis Complete

Now now you look at this chart carefully, I have made a red line, I have kept the defects on the left side inside the circle so that you can understand. The red color line here shows that only 3 defetcs have caused about 80% of the problems. That is, it is the 20% cause that is the root of 80% of the issues. So now we have come to know that we do not have to work on all the defetcs, just we have to work on these 3 defects (Rusty, Bend and Crack) so that the rest of the defects will come under their own control.

in short

Pareto chart is a very important tool in quality control, which helps us to improve our quality. There are many defects in the companies doing mass production and it is not possible that work can be done on all the defects. To know the solution of this we have to go today What is Pareto chart, By this we get to know which are the defetcs on which we have to work.

This is how we came to know through this post How to make Pareto Chart and why it is called 80-20 rule, Friends, I hope you liked this post. If you liked the post, then share it through Facebook, Twitter, Instagram also to those people who have trouble knowing this topic.