On the Pareto Chart presented below please indicate what is the category that re

Question

On the Pareto Chart presented below please indicate what is the category that represents the major offender or contributor to the Human Error problem. Does the Pareto principle holds based on how data is presented on the Pareto below, explain your answer? If the Pareto principle does not hold, present the new Pareto and analysis of major offender or contributor to the Human Error problems. Also indicate what would be your next steps to prioritize improvement effort after evaluation of the first (initial) Pareto evaluation.

Explanation / Answer

From the Pareto chart, the Major contributor is Granulation as it is the highest Bar in the chart thus represents the highest frequency.

Pareto Principle states that 80% effect is caused by 20% of the causes

There are 5 caused: Granulation, Compression, Coating, Sol Prep, Weighing

Thus each cause represents 20%.

Total frequency=14+9+5+3+2=33

Attribution of highest frequency (Granulation)=14/33=42.42%

Since Top 20% of Causes only have 42.42% effect, thus Pareto principle do not holds, which states that 80% effect is caused by 20% of the causes

New Pareto Analysis

80% of the Cause(Frequency)=0.8*33=26.4

Cumulative frequency of granulation and compression=14+9=23=69%(23/33)

Cumulative frequency of granulation, compression and coating=14+9+5=28=84.8%(28/33)

Thus 80% of the human error problem is contributed by Granulation, Compression and Coating.

Thus we should prioritise Granulation, Compression and Coating

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