Pareto Analysis

What kind of graph does Pareto Charts use?

• Histogram

• Line graph

• Column or Bar

• both b & c

Pareto principle states that

• 80% of factors lead to 20% of the effect

• 20% of defects lead to 80% of the wastes

• 20% of the causes lead to 80% of the defects

• None of these

Pareto principle is also interpreted as Vital few vs Trivial many because

• It helps in filtering the vital effects from the trivial ones

• It segregates the vital causes from the trivial ones

• It helps us recognize the factors with the highest impact

• both b & c

Pareto charts rank the causes behind an effect from smallest to largest - True or False?

• TRUE

• FALSE

Pareto Analysis was introduced by 

• Vilfredo Pareto, an Italian scientist

• Vilfredo Pareto, an Italian socio-economist

• Alfredo Pareto, an Italian socio-economist

• None of these

Purpose of Pareto Analysis is

• To identify the strengths & opportunities

• To identify the potential causes

• To identify the most significant causes to resolve

• To identify the effect of a cause

Which of the following is/are required for Pareto analysis?

• List of causes behind a problem

• Frequency of occurrence of each causal factor

• Cumulative frequency of occurrence of causal factors in ascending order

• All of these

Which statement is correct?

• Pareto helps identify the potential root causes

• Pareto helps identify the high impact causes

• Pareto helps in showing relationships between items

• None of the above

Which of these requirements is appropriate for applying Pareto analysis?

• List the types of customer complaints

• Identify  the most frequently occurring complaints

• Find resolutions against the most frequent types of complaints

• None of these

The line in a Pareto chart represents

• The cumulative % of defects

• The intersection point of 20% factors & 80% defects

• Both of these

• None of these