|
||||||
|
||||||
|
Pareto Chart You Say?One of your department heads looks at you and asks “Ishiwhat?” “You know,” you reply, “a fishbone diagram.” Still blank stares. “Cause and effect?” you say as you scribble out a trout carcass on your white board. Still nothing. You're starting to think the elevator doesn't go all the way to the top. You've got your work cut out for you. So you decide to punt. “Ok, let's just start with the Pareto charts,” you concede. “Sir, what is a potato chart?” asks another supervisor. “Let's take a five minute stretch break and then meet back in here so that I can welcome you to the world of Pareto charts.A Pareto chart looks similar to a bar chart. It has columns and it also has a line graph. Generally number of occurrences (frequency) is listed on the left side and percentage on the right. This type of chart is used to graphically summarize and display the relative importance of the differences between groups of data. For example, perhaps you have determined, or at least speculate that your widgets are being rejected due to – improper fittings, defective sorting machine, too large or too small, or other. If you look at the reports or studies and gather data on each of these reasons for failure, you can then plug the numbers into a chart. You may have assumed the reason for rejection was because the widgets were too large to fit through the tunnel. However your numbers may actually show (the data will validate) that indeed there was nothing wrong with the size of the widget, but rather the sorter was bent, thereby causing the good pieces to bounce into the reject bin. Typically you isolate five categories to measure. A Pareto chart can be constructed by separating the data into categories. Let's look at another example. If your business was investigating the delay associated with processing mortgage applications, you could group the data into the following categories: No signature, address not valid, illegible handwriting, existing customer and other. The left-side vertical axis of the Pareto chart is labeled Frequency (the number of counts for each category), the right-side vertical axis of the Pareto chart is the cumulative percentage, and the horizontal axis of the Pareto chart is labeled with the group names (categories) of your response variables. Are you getting the idea? Your bottom row will be labeled: No signature, address not valid, illegible handwriting, existing customer and other. Each title will have a corresponding column associated with it. Next determine the number of data points that reside within each group and construct the Pareto chart in a spreadsheet program; Excel works very well for these types of charts. The difference between a Pareto and a typical bar chart is that the Pareto chart is ordered in descending occurrence importance. Once you have your Pareto constructed and you can visually see what the data is telling you, and you will be able to answer a few questions. You will be able to determine the largest issues facing your team, department or business; you will be able to see what 20% of sources are causing 80% of the problems; and lastly you will know where you should focus your efforts to achieve the greatest improvements. No more guess work. You won't be needlessly wasting more time and money trying to fix problems that weren't broken. Call a staff meeting and get to work on your potato, er a Pareto Charts! About the author: James Louis writes about things that impact our society. His years of experience in finance prompts him to write about and share his insights about different aspects of the financial world. One of those insightful subjects is Forex trading. For more information visit his Forex site. Circulated by Article Emporium Finding fast life insurance Since the widespread growth of internet usage and database building it's never been easier or quicker to find fast life insurance. There was a time not long ago that the project could drag out forever. The process began with phone colds and lots of dialog between you and agents abo... What Financial Services do Credit Unions Offer? If you're looking for financial services, you may want to consider checking out what your credit union has to offer. Many credit unions today offer more than just a checking and savings account, they've expanded into upgraded financial services tailored to meet many needs. Your house is a big investment - probably one of the biggest you're every likely to make. It is also the place that you and your loved ones call home; a shelter and haven from the outside world. That's why it is so important to ensure that your home and family are p... The History of Business Loans The first business loans possibly date back to ancient Greece. One of the most important services offered by Greek bankers was the lending of money to finance the carriage of freight by ships. They also lent money for mining, and construction of public buildings. Later, during the ... Home Loan Refinancing - What Lenders Don't Want You To Know Refinancing lenders seems to hold all the cards. They have the money and their own system for determining which type of credit you can qualify for. What lenders don't want you to know is that you can improve your credit rating in a matter of days. Good Credit Factors ... What you need to know about debt negotiation on credit cards Debt negotiation on credit cards is often referred to as credit card debt settlement. Whenever you make a credit card payment- or even pay your utility bills- it usually gets reported to one- or all- of the three main credit agencies. This activity will influence your credit scor... NaturalGasStocks.com Sponsors The C.K. Cooper & Company Annual Small Cap Oil & Gas Conference February 1st, 2005 NaturalGasStocks.com Sponsors The C.K. Cooper & Company Annual Small Cap Oil & Gas Conference Management of thirteen small cap oil and gas companies will present POINT ROBERTS, WA. February 1st, 2005 - InvestorIdeas.com resourc... When is a Commercial Lender not a Commercial Lender? A Commercial Lender is Not a Commercial Lender When it is a Bank A commercial lender offers loans backed by hard collateral, usually real estate. Usually a commercial lender's lending criteria will be less stringent than at the local bank. This is because most banks focus on ... 5 Tips to Improve Your Credit Score Boosting your credit score can save you money. Your credit score is a number based on how well you pay back loans on time, sometimes called a FICO score. The higher the score, the less risky you are. The 3 players are Experian, Equifax and TransUnion. Your goal is to ... Pareto Chart You Say? One of your department heads looks at you and asks “Ishiwhat?” “You know,” you reply, “a fishbone diagram.” Still blank stares. “Cause and effect?” you say as you scribble out a trout carcass on your white board. Still nothing. You're starting to think the elevator doesn't go all t... Finding a mortgage in Nashville Weather you're purchasing a new home or looking at refinancing an existing mortgage it can be a big task. In order to find the best loan, a lot of research is required. Mortgage Nashville brokers are not hard to locate. You can simply do a quick search at any online directory to fi... How to Choose an Investment When you choose to invest your money, the final decision is yours alone. The risk of the investment is also yours. Before you invest, consider your complete financial situation, looking at both your current and future needs. In general, investors should avoid higher-risk i... Online Stock Trading: Freedom of Trade I remember the first time I started to trade online. It was just before the tech bubble of the late 1990's and the internet was still something new for most people. Purchasing the now forgotten company was easy, and I made a few dollars on that trade. It was so excitingly simple. <... Debt Reduction, a Necessary Endeavour Massive debt is something many Americans face. Debt reduction is now becoming more and more of a necessity. Even a low amount of debt can cost you a lot in the end and it can take a very long time to pay off. An example: Let's say you have $4000 in credit card debt and your int... Bad Credit Mortgage Lender - What to Look For If you have less than perfect credit and are looking to get approved for a mortgage loan, be careful not to make some common, costly mistakes. When dealing with sub-prime mortgage lenders or bad credit mortgage lenders, many people are taken advantage of because of their eagerness...
|
|
|||||
|
||||||