Problem Solving Tools Pareto Analysis

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    Pareto Analysis

    Training on

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    Pareto Diagram

    1. What is Pareto diagram ?

    It is a combination of bar and line graphs ofaccumulated data.

    It is based on 80/20 principle i.e. 80 % of problems

    occurs due to 20% of problem categories.

    2. When to use Pareto diagram ?

    When there are large number of issues or problems in

    give areaShop Floor, office, lab etc

    In above situation Pareto Diagram is one of the besttechnique to Prioritize the number of available issues or

    problems

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    61

    36

    21

    10

    1 1 1

    47%

    74%

    90%

    98% 98% 99%100%

    0.00%

    10.00%

    20.00%

    30.00%

    40.00%

    50.00%

    60.00%

    70.00%

    80.00%

    90.00%

    100.00%

    0

    Occurrence

    Frequency

    Type Of Issues - Problems

    Pareto Diagram illustrative Example

    Occurrence Frequency

    Cumulative %

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    61

    36

    21

    10

    1 1 1

    47%

    74%

    90%

    98% 98% 99%100%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    0

    DefectQua

    nity

    Defect Categories

    Defects Found In Pack Stock Prazocip sxl 16 - Dec 2011.

    Defects In Pack Stock

    Cumulative %

    Pareto Diagram Prioritization Based On Occurrence Frequency

    Defects In Pack StockDefect

    Quanity% Quantity Cumulative %

    Black Spot/Particle 61 46.56% 46.56%

    Torn/Cut Pocket 36 27.48% 74.05%

    Other defects 21 16.03% 90.08%

    Blister Knurling 10 7.63% 97.71%

    Blister Overprinting 10.76%

    98.47%Extra foil 1 0.76% 99.24%

    Outer carton overprinting 1 0.76% 100.00%

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    Pareto Diagram Prioritization Based On Frequency & Criticality

    183

    72

    40

    21

    5 4 2

    56%

    78%

    90%

    97% 98%99% 100%

    0%

    10%

    20%

    30%

    40%

    50%

    60%

    70%

    80%

    90%

    100%

    0

    50

    100

    150

    200

    250

    300

    Criticality

    Score

    Defect Categories

    Pareto -Defects Found In Pack Stock Prazocip 5xl. 16 - Dec - 2011

    Weighted Score

    Cumulative %

    Defects In Pack StockWeighted

    Score

    Defect

    Quanity

    Criticality

    1- 5 Scale% Score Cum. %

    Black Spot/Particle 183 61 3 55.96% 55.96%

    Torn/Cut Pocket 72 36 2 22.02% 77.98%

    Other defects 21 21 1 6.42% 84.40%

    Blister Knurling 40 10 4 12.23% 96.64%

    Blister Overprinting 5 1 5 1.53% 98.17%

    Extra foil 2 1 2 0.61% 98.78%

    Outer carton overprinting 4 1 4 1.22% 100.00%

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    How to Apply Pareto Diagram

    a) Finding 20 % of products causing 80% of customer

    complaints.

    b) Finding 20% of products accounting 80% of dispatch

    volume or 80 % of profit.

    c) Finding 20% of possible causes of delays accounting

    80% of delays in schedule.

    d) Finding 20 % of inventory which occupies 80% of total

    warehouse space.

    e) Also finding 20% of suppliers which accounts for 80%of inventories.

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    How to Apply Pareto Diagram

    1. To identify & reduce defects in Strip/Blister or Bottle

    Packing

    a) Collect data on Defects found during Pack stock

    inspection, say for last 3 months.

    b) Create Product wise Pareto Diagram for total no. of

    defects found in each product.

    c) Select top 2-3 products contributing approximately

    80% of total no of defects.

    d) Create Individual Pareto Diagram for each of product

    For all the campaigns - Overall

    Batch Wise

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    How to Apply Pareto Diagram

    1. To identify & reduce defects in Strip/Blister or Bottle

    Packing

    e) Select top 3 high frequent defects across the batches.

    f) Perform Root Cause Analysis usingWhy -Why &

    Cause & Effects Analysis

    g) Identify Corrective Action based on above analysis.

    h) Implement the above identified action & Perform

    Pareto Analysis again to see the effectiveness of

    Action Implemented

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    How to Apply Pareto Diagram

    2. To identify & reduce Minor Stoppages (Less Than 5

    Minutes) along the Packing Line

    a) Collect minor stoppages data shift wise & Line wise

    Collect data on Brief Stoppage Description

    frequency of occurrenceapproximate total duration

    b) Create Shift wise & Line wise Pareto Diagrams.

    c) Create Weekly - Overall Pareto Diagram

    d) Compare shift wise Paretos to find top 3 high

    frequent stoppages for given line & Product

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    How to Apply Pareto Diagram

    2. To identify & reduce Minor Stoppages (Less Than 3

    Minutes) along the Packing Line.

    e) Perform Root Cause Analysis usingWhy -Why &

    Cause & Effects Analysis

    f) Identify Corrective Action based on above analysis.

    g) Implement the above identified action & Perform

    Pareto Analysis again to see the effectiveness of

    Action Implemented

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    How to Apply Pareto Diagram

    3. To identify & reduce Major Stoppages (Less Than 3

    Minutes) along the Packing Line.

    a) Exactly similar approach as explained in Example 2

    to be used for identifying & reducing Major

    Stoppages along the Packing line

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    Pareto Diagram Application Example 1

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    Pareto Diagram

    7. Usage of Pareto Diagram? Identify & Prioritize problem.

    Find out effect of action taken.Previous & after

    improvement Pareto

    To drill down in prioritized problem categories

    In above Pareto of Unplanned Stoppages, around 70 %

    of stoppages are due to 30 % of categories i.e. others,

    Blister collection & machine settingscartonator.

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    Pareto Diagram Application Example 1

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    Pareto Diagram

    6. How To Construct Pareto Diagram?

    Excel Template method

    a) Select the type of data to be analyzed for. Eg. Here

    Unplanned stoppages at Line No 5 of tablets

    packing is considered

    b) Use this template to prepare Pareto Diagram.

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    Pareto Diagram Application Example 2

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    Pareto Diagram Application Example 2

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    Pareto Diagram Application Example 2

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    Pareto Diagram Application Example 2

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    Pareto Diagram Exercise:

    Sr.

    No.

    Line Stoppages

    Major

    Duration In

    Minutes

    1 Start up 30

    2 Foil Change 5

    3 Machine Setting

    Blister

    20

    4 Foil Change 15

    5 Machine Settings

    Blister

    25

    6 Meeting 707 Defoiling & Rejects 15

    8 Foil change 10

    1. Perform Pareto analysis for following Line stoppages

    Data. Line No: 16.Date: 23- Oct-2011. Shift: 1st

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    Pareto Diagram Exercise:

    Sr. No. Line Stoppages

    Major Duration In Minutes

    1 Batch Change 30

    2 Line clearance 15

    3 1st Print Proof 35

    4 In Process Check 105 Machine Setting - Blister 10

    6 QA observation 15

    7 Foil Change 20

    8 Machine Setting - Blister 25

    9 Officer Not Available 35

    10 Blister collection 15

    2. Perform Pareto analysis for following Line stoppages

    Data. Line No: 15.Date: 04- Nov-2011. Shift: 2nd

    P Di E i

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    Pareto Diagram Exercise:

    Sr. No. Line Stoppages Major Duration In Minutes

    1 Cotton Insertion Issue 0.75

    2 Cotton feeding pipe Issue 7.33

    3 No cotton feeding 0.25

    4 Sachet Roll Struck inside

    Machine

    8.5

    5 Silica Roll winding issue 2

    6 Bottle Struck below Silica M/C 1.7

    7 Bottle Overfilling issue 0.58 Tablet struck in capping M/C 0.33

    9 Cap loading 1.25

    3. Perform Pareto analysis for following Minor stoppages

    Data. Line No: 02.Date: 22- Dec-2011. Shift: 1st

    P Di E i

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    Pareto Diagram Exercise:

    3. Perform Pareto analysis for following Minor stoppages

    Data. Line No: 16.Date: 21- Jan-2012. Shift: 1st

    Sr. No. Reason For Stoppage FrequencyDuration -

    Minutes

    Avg Duration -

    Minutes

    1

    Leaflet missing issue & Leaflet

    partial folding issue. Breakdown

    Maintenance

    1 120 120.0

    2 Leaflet Missing 2 1.5 0.8

    3 Clearing Leaflet & Blisterrejection

    1 2.33 2.3

    4 Carton setting at conveyor 1 0.5 0.5

    5 Checkweigher stoppage 7 4.8 0.7

    6Dent mark on carton during

    Carton Packing2 3.8 1.9

    7 Carton obstruction at conveyor 1 0.5 0.5

    8 Carton flaps not getting closed 5 9.25 1.99 Carton Obstruction at Outfeed 6 2 0.3

    10Droppage of cartons from carton

    feeding belt to conveyor2 1 0.5

    P t Di E i

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    Pareto Diagram Exercise:

    Sr. No. Defects Categories No. Defects Found

    1 Outer Carton Overprinting 4

    2 Missing Leaflet 2

    3 Blister Overprinting 3

    4 Broken Tablet/Capsule 2

    5 Black Spot/Black Particle 2

    6 Chipping/Picking 5

    7 Seal open 2

    8 Torn Pocket/Cut Pocket 79 Blister / Strip Wrinkles 9

    10 Sticker Label Wrinkles 3

    4. Perform Pareto analysis for following Pack Stock

    Inspection Data.