W11 _Said Alamri_ Pareto Chart

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.

Table-1 Complaints Type

Table-1 Complaints Type

3. Development of the Outcome for Alternative

Table-2 categorized customer's complaints with cumulative No. & percentage

Table-2 categorized customer’s complaints with cumulative No. & percentage

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

Figure-1 Pareto Chart

Figure-1 Pareto Chart

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.

8. References:

  1. How To… Create a Pareto Chart in Excel 2010, retrieved on 17August 2014 http://www.youtube.com/watch?v=TBtGI2z8V48
  2. Pareto Analysis, retrieved on 17August 2014  http://www.mindtools.com/pages/article/newTED_01.htm
  3. Bassard, Michael & Riter, Diane (2010). The Memory Jogger 2nd Edition, Canada, GOAL/QPC
  4. Pareto Chart, retrieved on 17August 2014  http://www.excel-easy.com/examples/pareto-chart.html

One thought on “W11 _Said Alamri_ Pareto Chart

  1. Excellent case study, Said and your analysis was a good one except for Step 7. If you turn to page 128 in your Memory Jogger 2, you can see that what you want to do is a “before” and “after” assessment. That is, you’ve identified the top 20% of problems and you make some changes (“interventions”), but what you want to find out is if the interventions/improvements you made fixed the problem or did it just move it to another step in the process?

    Other than that, nice work!!!

    Dr. PDG, Jakarta

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