PARETO CHART - Good e-Learning · Problem Management - Pareto Analysis Itrotio is tecnie s identied...

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Free Resource Library www.goodelearning.com © Good e-Learning 2015. ITIL® is a Registered Trademark of AXELOS Ltd. @goodelearning /goodelearning /company/good-e-learning Good e-Learning Resources :: www.goodelearning.com/downloads CHART OF NETWORK FAILURES TABLE: PARETO CAUSE RANKING CHART NETWORK FAILURES Causes Percentage of total Computation Cumulative (%) Network controller 35 0 + 35% 35 File corruption 26 35% + 26% 61 Addressing conflicts 19 61% + 19% 80 Server OS 6 80% + 6% 86 Scripting error 5 86% + 5% 91 Untested change 3 91% + 3% 94 Operator error 2 94% + 2% 96 Backup failure 2 96% + 2% 98 Intrusion attempts 1 98% + 1% 99 Disk failure 1 99% + 1% 100 ITIL ® Poster Series #43 Problem Management - Pareto Analysis Introduction This technique was identified by Vilfredo Pareto an Italian economist. It can be used for quality improvement, on the analysis that a large majority of problems (80%) are produced by a few key causes (20%). This is also known as the vital few and the trivial many. Used as part of the problem management process, this can assist in identifying where the emphasis of root-cause analysis should be focused. Pareto Analysis is a simple technique for pri- oritizing possible improvements or changes by identifying the problems that will be re- solved by making them. Using this approach, you can prioritize the individual changes that will most improve the situation. Pareto Analysis uses the Pareto Principle – also known as the “80/20 Rule” – which was developed by Joseph M. Juran in 1937. It is the idea that 20 percent of causes generate 80 percent of results. With this tool, we’re trying to find the 20 percent of work that will generate 80 percent of the results that doing all of the work would deliver. THE APPROACH PROVIDES THE FOLLOWING INSTRUCTIONS: • Form a table listing the causes and their fre- quency as a percentage. • Arrange the rows in decreasing order of im- portance of the causes, i.e. the most impor- tant cause first. • Add a cumulative percentage column to the table. By this step, the chart should look something like Table Pareto cause ranking chart, which illustrates 10 causes of network failure in an organization. • Create a bar chart with the causes, in order of their percentage of total. • Superimpose a line chart of the cumulative percentages. The completed graph is illus- trated in the Chart of Network Failures. • Draw a line at 80% on the y-axis parallel to the x-axis. Then drop the line at the point of intersection with the curve on the x-axis. This point on the x-axis separates the important causes and trivial causes. This line is repre- sented as a dotted line in the chart. In the example below, the table and chart show a high volume of network controller failures, file corruptions and the need to address network conflicts. The volume of failures relating to these areas make up over 80% of the cumulative volume of failures across the network. Using this approach allows us to see the benefits that may be achieved in network stability if we address these high volumes, and reduce them. PARETO CHART 0 5 10 0 15 20 20 40 30 80 25 60 35 100 40 Network controller NUMBER OF FAILURES CUMULATIVE PERCENTAGE File corruption Addressing conflicts Server OS Untested change Scripting error Operator error Backup failure Intrusion attempts Disk failure TRIVIAL MANY VITAL FEW N E T W O R K F AIL U R ES

Transcript of PARETO CHART - Good e-Learning · Problem Management - Pareto Analysis Itrotio is tecnie s identied...

Page 1: PARETO CHART - Good e-Learning · Problem Management - Pareto Analysis Itrotio is tecnie s identied iredo reto n tin econoist t cn e sed or it iroeent on te nsis tt rge orit o roes

Free Resource Library www.goodelearning.com

© Good e-Learning 2015. ITIL® is a Registered Trademark of AXELOS Ltd.

@goodelearning /goodelearning /company/good-e-learning

Good e-Learning Resources : : www.goodelearning.com/downloads

CHART OF NETWORK FAILURES

TABLE: PARETO CAUSE

RANKING CHART

NETWORK FAILURES

Caus

es

Perc

enta

ge o

f to

tal

Com

puta

tion

Cum

ulat

ive

(%)

Network controller 35 0 + 35% 35

File corruption 26 35% + 26% 61

Addressing conflicts 19 61% + 19% 80

Server OS 6 80% + 6% 86

Scripting error 5 86% + 5% 91

Untested change 3 91% + 3% 94

Operator error 2 94% + 2% 96

Backup failure 2 96% + 2% 98

Intrusion attempts 1 98% + 1% 99

Disk failure 1 99% + 1% 100

ITIL® Poster Series #43Problem Management - Pareto Analysis

IntroductionThis technique was identified by Vilfredo Pareto an Italian economist. It can be used for quality improvement, on the analysis that a large majority of problems (80%) are produced by a few key causes (20%). This is also known as the vital few and the trivial many.

Used as part of the problem management process, this can assist in identifying where the emphasis of root-cause analysis should be focused.

Pareto Analysis is a simple technique for pri-oritizing possible improvements or changes by identifying the problems that will be re-solved by making them. Using this approach, you can prioritize the individual changes that will most improve the situation.

Pareto Analysis uses the Pareto Principle – also known as the “80/20 Rule” – which was developed by Joseph M. Juran in 1937. It is the idea that 20 percent of causes generate 80 percent of results. With this tool, we’re trying to find the 20 percent of work that will generate 80 percent of the results that doing all of the work would deliver.

THE APPROACH PROVIDES THE FOLLOWING INSTRUCTIONS:• Form a table listing the causes and their fre-

quency as a percentage.• Arrange the rows in decreasing order of im-

portance of the causes, i.e. the most impor-tant cause first.

• Add a cumulative percentage column to the table. By this step, the chart should look something like Table Pareto cause ranking chart, which illustrates 10 causes of network failure in an organization.

• Create a bar chart with the causes, in order of their percentage of total.

• Superimpose a line chart of the cumulative percentages. The completed graph is illus-trated in the Chart of Network Failures.

• Draw a line at 80% on the y-axis parallel to the x-axis. Then drop the line at the point of intersection with the curve on the x-axis. This point on the x-axis separates the important causes and trivial causes. This line is repre-sented as a dotted line in the chart.

In the example below, the table and chart show a high volume of network controller failures, file corruptions and the need to address network conflicts. The volume of failures relating to these areas make up over 80% of the cumulative volume of failures across the network.Using this approach allows us to see the benefits that may be achieved in network stability if we address these high volumes, and reduce them.

PARETO CHART

0

5

10 0

1520

20

40

30

80

25

60

35

100

40

Net

wor

k co

ntro

ller

NU

MBE

R O

F FA

ILU

RES

CUM

ULA

TIVE

PER

CEN

TAG

E

File

cor

rupt

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Add

ress

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confl

icts

Serv

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Unt

este

d ch

ange

Scri

ptin

g er

ror

Ope

rato

r er

ror

Back

up fa

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Intr

usio

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tem

pts

Dis

k fa

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TRIVIAL MANY

VITAL FEW

NETWORK FAILURES