Pareto Diagram

Question 1

is a technique used for business decision-making, but it also has applications in several different fields from welfare economics to quality control.

Answer 1

Pareto analysis

Question 2

Pareto analysis based largely on the

Answer 2

“80-20 rule.”

Question 3

statistically separates a limited number of input factors—either desirable or undesirable—which have the greatest impact on an outcome.

Answer 3

Pareto analysis

Question 4

is premised on the idea that 80% of a project’s benefit can be achieved by doing 20% of the work—or, conversely, 80% of problems can be traced to 20% of the causes.

Answer 4

Pareto analysis

Question 5

is a powerful quality and decision-making tool.

Answer 5

Pareto analysis

Question 6

Italian economist

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Vilfredo Pareto

Question 7

who discovered that 80% of the land in Italy was owned by just 20% of the people in the country.

Answer 7

Vilfredo Pareto

Question 8

was formally defined as follows: The top 20% of a country’s population accounts for an estimated 80% of the country’s wealth or total income..

Answer 8

80-20 rule

Question 9

Romanian-American business theorist

Answer 9

Joseph Juran

Question 10

discovered Pareto’s research in 1937

Answer 10

Joseph Juran

Question 11

Juran proceeded to rename the 80-20 rule as

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“Pareto’s Principle of Unequal Distribution.”

Question 12

used to determine which issues cause the most problems within different departments, organizations, or sectors of a business.

Answer 12

Modern-day applications of Pareto analysis

Question 13

to save the most scarce resource in the business, which is time, in the area of solving problems.

Answer 13

Pareto analysis

Question 14

Here is a basic breakdown of the steps of Pareto analysis:

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1.Identify the problem or problems
2.List or identify the cause of the issues or problems, noting that there could be multiple causes
3.Score the problems by assigning a number to each one that prioritizes the problem based on the level of negative impact on the company
4.Organize the problems into groups, such as customer service or system issues
5.Develop and implement an action plan, focusing on the higher-scored problems first, in order to solve the problems

Question 15

product design and quality defect prevention to identify potential factors causing an overall effect.

Answer 15

Ishikawa diagram

Question 16

diagram is named after its creator(Ishikawa Diagram)

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Kaoru Ishikawa.

Question 17

diagram’s structure resembles the

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skeleton of a fish.

Question 18

represent the causes of an event

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ribs

Question 19

indicates the outcome.

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skeleton’s head

Question 20

Ishikawa diagrams are sometimes referred to as

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fishbone diagrams

Question 21

They are also referred to as

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Fishikawa, herringbone diagrams, or cause and effect diagrams

Question 22

organizes information into six categories: man, machine, material, method, mother nature, and measurement.

Answer 22

6M diagram

Question 23

6M diagram six categories

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man,
machine,
material,
method,
mother nature, and
measurement.

Question 24

it could be used to identify bottlenecks slowing down the manufacturing process in a candle business.

Answer 24

6M diagram

Question 25

organizes information into
eight categories: procedures, policies, place, product, people, processes, price, and promotion.

Answer 25

8P diagram

Question 26

8P diagram eight categories

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procedures,
policies,
place,
product,
people,
processes,
price, and
promotion

Question 27

It is most commonly used in the manufacturing industry

Answer 27

6M diagram

Question 28

It is most commonly used in the service industry.

Answer 28

8P diagram

Question 29

organizes information into
four categories:
suppliers,
systems,
surroundings, and
Skills.

Answer 29

4S diagram

Question 30

4S diagram four categories:

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suppliers,
systems,
surroundings, and
Skills.

Question 31

It is most commonly used in the service industry.

Answer 31

4S diagram

Question 32

For instance, a restaurant could use it to determine why the number of customers has declined over the past year.

Answer 32

4S diagram

Question 33

How to make an Ishikawa diagram

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Identify and agree on the exact problem
Document the problem.
Brainstorm the major categories of causes.
Identify potential causes of the problem.
Analyze the diagram.

Question 34

represents the problem statement

Answer 34

fish’s head

Question 35

horizontal line resembles the

Answer 35

fish’s spine