Monday, 30 April 2012

1. Write a note on the following: a. Pareto chart


Pareto Chart
Vilfredo Pareto (1848-1923) discovered that:
· 80% of the wealth in Italy was held by 20% of the population
· 20% of customers accounted for 80% of sales
· 20% of parts accounted for 80% of cost, etc.
These observations were confirmed by Juran (1960) and resulted in what is known as the Pareto Principle.The Pareto Principle states that:
"Not all of the causes of a particular phenomenon occur with the same frequency or with the same impact". Pareto analysis gives recognition to the fact that, invariably, a small number of problem types account for a large percentage of the total number of problems that occur. Thus it is also called as “80/20” rule. Such characteristics can be highlighted using Pareto Charts.
Pareto charts show the most frequently occurring factors. The lengths of th

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