W8_Murtadha_Pareto Chart Analysis


  1. Problem Recognition

A relative has owned a barber shop for quite some time now and he has noticed that all though the business was picking up in the first couple of years it is now in a downhill trend. He set out to find out why and what could be done to flip this around. He setup a survey to figure out what were the key reasons that his customers weren’t coming back.

  1. Development the Feasible Alternative

The following key complaints were collected and categorized through the survey he had setup.

  • Hygiene level
  • Friendliness of the employees
  • Efficiency of employees
  • Price
  • Wait time
  • Other complaints
  1. Development of the Outcome for Alternative

 

  Number of complaints Cumulative number Cumulative percentage
Friendliness of the employees 24 24 32
Efficiency of employees 16 40 54
Wait time 19 59 80
Price 6 65 88
Hygiene level 5 70 95
Other complaints 4 74 100

 

Table-1 categorized customer’s complaints with cumulative No. & percentage

  1. Selection of Criteria

Pareto principle, also known as the 80-20 rule, this rule can be further explained as that most things in life are not distributed evenly. It can mean all of the following things:

  • 20% of the input creates 80% of the result
  • 20% of the workers produce 80% of the result
  • 20% of the customers create 80% of the revenue
  • 20% of the bugs cause 80% of the crashes
  • 20% of the features cause 80% of the usage
  1. Analysis and Comparison of the Alternative

pareto

Figure-1 Pareto Chart

  1. Selection of the Preferred Alternative

From Pareto chart, by focusing at the employees’ friendliness and their efficiency he can solve 80% of customers’ complaints.

  1. Performance Monitoring and the Post Evaluation of Result

Implementing the Pareto chart is not a one stage operation the business owner should look at making the changes concluded from the first assessment and then hold another assessment to see if those changes have affected the results or more actions need to be taken in order to resolve the customer complaints.

  1. References:
  2. How To… Create a Pareto Chart in Excel 2010, retrieved on August 2014http://www.youtube.com/watch?v=TBtGI2z8V48
  3. Pareto Analysis, retrieved on August 2014  http://www.mindtools.com/pages/article/newTED_01.htm
  4. Bassard, Michael & Riter, Diane (2010). The Memory Jogger 2nd Edition, Canada, GOAL/QPC
  5. Pareto Chart, retrieved on August 2014  http://www.excel-easy.com/examples/pareto-chart.html
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One thought on “W8_Murtadha_Pareto Chart Analysis

  1. Nice job on your analysis and I was happy to see that you identified that you need to do a follow on assessment, but are you telling us that the BEST case study you could come up with was a barbershop example??????

    SURELY you are having SOME problems at work where a Pareto Analysis could actually HELP you identify a real opportunity that could help you generate a favorable return on training investment for your company?

    VERY disappointed to see people not yet making the connection between what this course is teaching you and helping you to IMPROVE your work processes…….

    You still owe a few more blog postings…… How about you try to find a real problem at work that I may actually be able to mentor you and help you to SOLVE? Something that will pay for the money your company invested to send you to this course?

    BR,
    Dr. PDG, Jakarta

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