Creating a SIPOC Chart
February 12, 2025
Buying a Desktop computer for your home or a Laptop for your use is very easy. You browse the internet to see the latest models and configurations, decide on your specific requirement and click to place an order. At times, of course, you might go into an electronic supermarket and check out the physical product […]
Data can be described as the backbone of any six sigma project. This is because the whole idea of six sigma and operations is to use statistics to manage operations in the factory workshop. Hence, for a six sigma team to understand the types of data and when and how to use them is of […]
Introduction For an organization to have an effective and efficient manufacturing unit, it is important that special attention is given to facility layout. Facility layout is an arrangement of different aspects of manufacturing in an appropriate manner as to achieve desired production results. Facility layout considers available space, final product, safety of users and facility […]
Drugs have been a moral menace to many societies for many years. Right from the time, the British East India Company corrupted an entire Chinese generation to the modern world where this epidemic is destroying South American nations, the curse of drugs is causing mayhem. This has led many governments in the past as well […]
Decision support systems are now widely used in organizations and military across the world, helping decision makers apply analytical, statistical and scientific techniques to decision making. In recent years, there popularity has significantly increased because of their ability to execute, interpret, analyze and suggest. Decision support systems can be used in the areas of economic […]
A Pareto chart is one of the 7 basic tools of quality control. It is for this reason that every student of quality management needs to know how to prepare and how to read a quality chart. The procedure for the same has been listed below:
Step 1: Find the Causes
The process starts with finding the underlying causes. The “could be” causes to positive effects like revenues or profits of a company and will therefore need to be maximized. Alternatively these could be the causes of negative effects like losses or defects and will then need to be minimized.
Step 2: Prepare a Frequency Table
Once the underlying causes have been listed down, they need to be checked for their importance. This can be done by running simulations of the process several times and recording the outcomes. A frequency table is one of the best ways to do so. Most managers prefer to have a cumulative frequency column.
Step 3: Convert it into Percentages
Once there is sufficient data to understand the importance of the underlying causes on the process and a frequency table has been created, it’s time to convert the numbers into percentages. This is because percentages are intuitively easier to understand than regular numbers.
Step 4: Arrange in Descending Order
Last but not the least it’s time to arrange the causes. The most important ones must be at the top while the least important ones must be at the bottom of the table. Thus the arrangement must be in descending order. Also once must ensure that the percentages are also cumulatively taken track of. The causes that come before cumulative percentage 80% in reached are usually considered the vital few factors. This arrangement makes it easy for the naked eye to understand the important factors and make necessary changes to achieve desired results.
The above example gives you the results of Pareto Principle in a tabular form. In case you need the same in graphical form, you will need to understand how to create and read a Pareto chart. A Pareto chart may be confusing because it shows both the individual as well as the cumulative data. Here is how to read or prepare a Pareto chart:
Read The Bar Charts For Individual Values
The Bar charts that are connected to the X axis are prepared in descending order. These bars represent the most important factors and gives the user an chance to understand their individual values.
Read The Line For Cumulative Value
The line at the top of the bars shows cumulative values. This gives the user a chance to understand the cumulative values.
Thus the user can simultaneously look at individual values and cumulative values. This helps them easily separate the “vital few” from the “trivial many”.
Your email address will not be published. Required fields are marked *