Critical Thinking Activity – Selecting Improvement Subjects Using Pareto Charts

Critical Thinking Activity – Selecting Improvement Subjects Using Pareto Charts and Stratification
Critical Thinking Activity – Selecting Improvement Subjects Using Pareto Charts and Stratification
You will need to complete the following:
Page 1: Create an APA paper including a title page (there is a sample in the Files section of our course)
Page 2: Write a full one page paper explaining the case study , addressing questions, and explaining the tool
Page 3: Create a pareto chart (either in excel, SPS, Minitab, or on paper and take a picture)
Page 4: Create an APA reference slide
This is the format for multiple weeks homework assignments.
Our text cover the pareto chart in multiple section. The Pareto Principle, named after economist Vilfredo Pareto, is more commonly known in quality circles as the 80/20 rule. This rule is used variably to contend that 80% of the quality issues in an organization are caused by 20% of the problems or that 80% of the problems can be traced to a few critical sources (the 20%). Pareto charts are useful for separating the important from the trivial. Pareto charts are important because they can help an organization decide where to focus limited resources. On a Pareto chart, data are arrayed along an x-axis and a y-axis.
Below are directions on how to build a pareto in excel. You can also download SPS, Minitab, or draw it on paper and attach a picture.
A Pareto or sorted histogram chart contains both columns sorted in descending order and a line representing the cumulative total percentage. Pareto charts highlight the biggest factors in a data set, and are considered one of the seven basic tools of quality control as it’s easy to see the most common problems or issues.
This week, we are going to look at quality and global competitiveness.
The relationship between quality and competitiveness is best illustrated by an example from the world of athletics. Consider track star Juan Arballo. In high school, he was his track team’s best sprinter. Competing at the district level, Juan easily topped the competition in such events as the 100-, 200-, and 400-meter runs and several relays in which he was the anchor. He did well enough in high school to win a college scholarship. However, at the college level the competition was of a higher quality, and Juan found he had to train harder and run smarter to win. This he did, and although he no longer won every race, Juan did well enough to pursue a spot on the U.S. Olympic team.
In the Olympic Trials, the quality of the competition was yet again better than that to which Juan was accustomed. He made the Olympic team but only in two events: the 200-meter dash and the 4 x 100 relay. In the preliminary events at the Olympics, Juan Arballo found the quality of his competitors to be even better than he had imagined it would be. Some competitors had pre-liminary times better than the best times he had ever run in meets. Clearly, Juan faced the competitive challenge of his career. When his event was finally run, Juan, for the first time in his life, did not place high enough to win a medal. The quality of the global competition was simply beyond his reach.
In this example, at each successive level of competition the quality of the competitors increased. A similar phenom-enon happens to businesses in the marketplace. Companies that used to compete only on a local, regional, or national level now find themselves competing against companies from throughout the world.
Like Juan Arballo, some of these companies find the competition to be more intense than any they have ever encountered. Only those who are able to produce world-class quality can compete at this level. In practical terms, it is extremely important for a country’s businesses to be able to compete globally. When they can’t, jobs are lost and the quality of life in that country declines correspondingly.
During your studies this week, think about how quality and competition are evolving in your industry and how your company is adjusting or leading in that space.
Demonstrate an understanding of total quality management (TQM) and how it can be used to achieve the strategic business objectives of a company in today’s competitive business environments.
Knowledge, Skills, and Abilities
Compare and contrast the differences between the two views of quality.
Describe the similarities and differences among the various quality gurus views of quality.
Identify the different factors inhibiting quality and contributing to the cost of poor quality.
Knowledge, Skills, and Abilities
Compare and contrast the differences between the two views of quality.
Describe the similarities and differences among the various quality gurus views of quality.
Identify the different factors inhibiting quality and contributing to the cost of poor quality.