How to use Pareto rule? 3x real life examples

3 different pareto analysis examples from real environment. DMAIC Process improvement, Discrepancy evaluation, Personall goals. Pareto rule is great helper in decision making, focusing on most important things, and reducing stress. Be inspired by these 3 simple examples and use it durring your projects. Pareto excel template is included 🙂

this article covers:

  • Pareto rule basics
  • Pareto rule example 1 – DMAIC tools
  • Pareto example 2 – discrepancy evaluation
  • Pareto analysis 3 – personal goals set up
  • Pareto excel template download
Pareto distribution example 2 – discrepancies evaluation

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Pareto rule basics

You are able to improve 80% of processes By using 20% of tools from six sigma toolbox. 80% discrepancies are created by 20% of services. and 80% of your success comes from 20% of your efforts.

Pareto rule thus, is great helper in decision making, focusing on most important things, and reducing stress.

Let me share with you some pareto analysis examples.

Pareto rule example 1 – DMAIC tools

There is a DMAIC tool list I put together while ago (see picture below). There are quite bit of tools and methods listed, right? But I say, and I say it based on my long years’ experience, that by few of them you can improve almost everything. There are about 40 main tools listed. So, by using 8 of them you can win the day.

DMAIC tool list for any project

DMAIC Six Sigma example in Manufacturing – read here

And here they are:

Project charter; Process mapping; Waste walk; List of measures; Value added / nonvalue-added research; Root cause evaluation; Solution implementation; Detailed implementation plan.

Have you noticed that there is no heavy statistics at all? Statistics scares people the most on six sigma, but there is nothing to be afraid of. Showed tools is pretty easy to learn and use.

I repeat to use these tools over and over again. Imagine this. You can improve current malfunction process by 80% using these 20% tools. What a great progress, isn´t it.? Do not seek perfection in your projects.

The best DMAIC tools for any project (+template) – read here

I do videos, blog posts, and all templates for free, in my free time. I will appreciate if you can donate me a cup of cofee, for more energy in my creation. (1 dollar counts, too 😉 Click on this link: I would like to support Erik in his effort

Pareto example 2 – discrepancy evaluation

To understand where to direct our focus, some measurement must be done first.

Fist data collection

Every discrepancy is a waste because rework occupies production capacities. Identify discrepancy immediately after occurrence by shorter name. Add deeper description, to have more details for later investigation, if required. Shorter name will be used for pareto. Sometimes happens, that people use different words during discrepancy identification. That is OK. Just make sure discrepancies are the same, so you can unify names. Like diameter A undersized, and dimension A undersized.

We can create occurrence distribution, by naming and counting each discrepancy.

Once we have it, we can simply create pareto distribution (follow picture below)

Data updated, – do not forget to clean out your data
3 easy steps for pareto in excel

Discrepancies identified by same name will be put together and create column. Each column represents discrepancy. Column high is discrepancies count. Notice, that there are challenges with diameter A and B undersized and oversized. We can merch both together, because there is huge similarity in it.. More similar data will help with better root-cause identification. It is important to make sure, that causes creating discrepancies under one name are really the same.

20% problems casuse 80% pain

Now it is more than obvious, what is most important troublemaker, team must focus on.

How to create and use Fishbone diagram? (+template) – read here

Download fishbone template

Here is how fishbone template for download looks like:

Fishbone template

There is task list template I use in my projects all the time included. It looks like this:

Addressing cause template is included

There is 5 whys analysis template included, On top of that:

5 whys template is included

You can download fishbone analysis, Task list and 5 whys template on the link below:

Pareto analysis 3 – personal goals set up

Very important area for pareto rule implementation, is personal goals definition. By identifying most important long term, aims we can focus on activities leading to those goals. We should pay attention to our habits. The thing is that Those less efficient habits have tendency to grow at the expense of more efficient ones.

Personal goal and list of daily routine activities
Identify, if each activity is supporting / not supporting your goal

Identify 1, but maximum 2 main goals, you want to reach.

List all your activities you do daily under. Mark ones that have direct affect on the goal. The main topics of your day. These activities will be ones you will focus on first every day until goal is reached. That does not mean, that less important activities you will not do. No. But you will work on them once main daily topics are finished.

It will be much more easier, and less stressful for you to postpone not finished less important topics.

This is how Pareto distribution can look like.

Pareto excel template download:

There are 4 different lists in this excel.

  • List 1 – Pareto template (create any pareto analysis)
  • List 2 – Pareto discrepancy example
  • List 3 – DMAIC tool list template (photo)
  • List 4 – Personal goals pareto template (list daily tasks, and check how it supports your ultimate goal)

And this si preview what you will download

Pareto template – list one. Rewrite your own list based on your needs
Pareto discrepancies example
DMAIC tool list
Personal goal pareto analyis – Daily task + if it supports your goal, Automatic Pareto

You can download Pareto template on the ling below, It contains JFK long term plan on top it.

I do videos, blog posts, and all templates for free, in my free time. I will appreciate if you can donate me a cup of cofee, for more energy in my creation. (1 dollar counts, too 😉 Click on this link: I would like to support Erik in his effort

Do not forget to visit and subscribe to my YouTube channel. I upload short explanatory videos on Lean Six Sigma topics, and tools regurarly.

Do not hesitate to post your comments, questions, or themes you are interested in.

Yours sincerely Erik

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