1. Problem Recognition
Number of customers decreased recently in a restaurant serving traditional arabic food. The owner wants to identify the significant reasons that caused customers to stop coming to his restaurant. He decided to do a survey and collect customers’ complaints and analyze information using Pareto chart.
2. Development the Feasible Alternative
Through a survey customers complaints where gather and categorized in the below Table-1.
3. Development of the Outcome for Alternative
4. Selection of Criteria
Pareto principle, also known as the 80/20 rule, will be used to identify that 80 percent of the effects from this situation is determined by 20 percent of the causes. The owner should focus only at 20% of the significant causes which will cover minimal 80% of the problems.
5. Analysis and Comparison of the Alternative
6. Selection of the Preferred Alternative
From Pareto chart, by focusing at hygiene, overpriced & food tasteless problems, restaurant owner will solve 80% of customers’ complaints.
7. Performance Monitoring and the Post Evaluation of Result
Pareto chart is a helpful tool to solve significant business problems.
- How To… Create a Pareto Chart in Excel 2010, retrieved on 17August 2014 http://www.youtube.com/watch?v=TBtGI2z8V48
- Pareto Analysis, retrieved on 17August 2014 http://www.mindtools.com/pages/article/newTED_01.htm
- Bassard, Michael & Riter, Diane (2010). The Memory Jogger 2nd Edition, Canada, GOAL/QPC
- Pareto Chart, retrieved on 17August 2014 http://www.excel-easy.com/examples/pareto-chart.html