Question

Quality improvement tools represent a set of graphical techniques for the determination, analysis, and solution of business problems. Based upon finding the "vital few" items or causes, the basis of A-B-C inventory analysis that classifies inventory items by annual dollar usage and the determination of the major quality or operational problems in an organization are the result of the following quality improvement chart? O Regression analysis o Process flow diagram O Design of experiments Pareto analysis

Answer 1

Answer: Pareto analysis

In an organization, the majority of issues – that is 80% of problems are caused by very few factors – that is only 20% of causes. Pareto analysis is a statistical approach which is used to identify the lesser number of activities which have a major effect. It helps the management to decide on the areas of improvement. It is a bar chart that represents the frequency of problems or cost with the longest bars (large number of occurrences) in the left and the smallest bars (lesser number of occurrences) in the right. This is a visual depiction of the problem area i.e., the longest bars are major problem area which require improvement.