Pareto Curves

You will find out the problems in your system continuously. This will happen frequently throughout your lean journey. When you know many problems you have, how you decide what the first to attend is. To do this we will have identify the relative importance of the problems to the system. Pareto curve is very important in this. This tool can be used to identify the problems and rank them and to graphically represent them.

When you construct a Pareto diagram, you will first have to identify the problems clearly. Then you have to analyze them to find out the frequencies of occurrence and rank them based on the percentage of their importance. Then you must arrange them in the descending order. Now you can create the pareto curve.

We will assume the information below and construct a pareto for this.

Problem: Frequent production delays

Cause Frequency % to the total Cumulative Total Machine Breakdowns 120 51.06% 51.06% Raw material Shortages 88 37.45% 88.51% Low quality raw materials 18 07.66% 96.17% Electricity failures 9 03.83% 100% Total 235 100%

It is very important to construct the paretos for before and after the improvements. This will give you a good indication about the effectiveness of the improvements you have made to the system.

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