Tools and Techniques Paper

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Tools and Techniques Paper

MGT/350 Critical Thinking

Group Number LM04BSM01


A Pareto Chart is a series of bars whose heights reflect the frequency or impact of problems. The bars are arranged in descending order of height from left to right. The tall bars on the left are more significant than the small bars on the right. Pareto analysis is a very simple technique that does not require any statistics to use. Pareto analysis helps you choose the most effective changes to make no matter what problem you are having.

The Pareto principle is known as the 80 / 20 rule, since 20 percent of something is always are responsible for 80 percent of the results. Project Managers know that 20 percent of the work (the first 10 percent and the last 10 percent) consume 80 percent of your time and resources.

Pareto analysis is a formal technique for finding the changes that will give the biggest bang for the buck. It separates the “vital few” from the “trivial many”. It is useful where many possible courses of action are competing for your attention.

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Application of Pareto Charts

At Ducommun Aerostructures we use Pareto charts frequently. They are incorporated into what we call I-Charts, or Information Charts. Pareto Charts are employed because you can analyze them at a glance. The Pareto Chart is a good example of the saying “a picture is worth a thousand words”. We have the Information Charts posted at each work station around the Plant that can be analyzed literally as you are walking by.

One of the Pareto Charts we use is for the types of defects being reported in that particular area. Below the Pareto Chart ...

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