What is a Pareto Chart and how is it used in Six Sigma?

What is a Pareto Chart and how is it used in Six Sigma?

What is a Pareto Chart and how is it used in Six Sigma? This is a very good question. It is well known that Six Sigma is one of the best options used for manufacturing and other production businesses to work leanly in their production process.

However with the Six Sigma process, there are many steps and many tools that are included in order to achieve the highest level of business efficiency. One of these tools within Six Sigma is the Pareto Chart.

The Pareto Chart are used to determine the "Vital Few" causes that tend to be the issue with the majority of complaints that pertain the product or service. The Pareto Charts are created equally to most other charts. In fact they can be easily created in Excel.

More importantly is the valuable information that is provided by using the Pareto Chart for finding and comparing data to target the defect issues, and resolving them. Therefore eliminating the non-add work.

You will likely find these typical subjects that will have data gathered on the Pareto Chart. This is the in the horizontal line on the Chart.

• Contaminated

• Misaligned

• Damaged

• Poor Color

• Rusted

• Other

You will also find a frequency of these stats. These numbers are from 0-120 or in that range. This is in the vertical line on the chart.

The Pareto Chart is also used in order to track the similarities in this data, informing those reading the information of the differences in the data. The overall design of the Pareto Chart is designed for quick answers, collected information and helping in making knowledgeable decisions.

Using the Pareto Chart will make it easier to see that 20% of the sources on the chart are what is causing 80% of the problems. Then you will know where you need to focus changes in processes, products or training in the production and manufacturing process.

The Pareto Chart was created and designed by Vilfredo Pareto during the turn of the century. Vilfredo Pareto is an Italian Economist. He studied in Wealth Distribution in many different countries. He came to find that about 20% of all people controlled the majority of 80% of the people who followed. This is basically the societies wealth process.

The Pareto Chart follows along this same theory. They believe that there is very little difference when it comes to the cost of production a product.

When you are looking at the Pareto Chart and how it works with Six Sigma, you will find that looking for some specific factors will make you more aware of what is happening. Here is what you will want to keep in mind.

1. Look for a break point that is in the line of cumulative percentages. This break point will often times occur where the slop of the line will start to flatten out. Pay special attention to the factors that are in the steepest part of the curve, these will be the most important.

2. If the bars are of similar six, then you will find that about half of the categories are needed in order to complete 60%. This will then mean that you need to look at a different breakdown of categories to get an adequate breakdown of criteria.

3. Also, it is important to check for a clear change in the columns and line. If there is not a clear enough line, then look at what makes up the 60%

You will find that the use of the Pareto Charts will often times lead to additional use of other charts. You will be able to use all of these tools through the Six Sigma program to create a lower amount of waste in the manufacturing and production of products and services.