Analysis Of The Pareto Diagram

1. Cause and Effect Diagrams

This is a tool that is very useful to identify the causes of problems. It is also referred to as an Ishikawa diagram of Fishbone diagram. The name was derived from a Japanese expert who was instrumental in popularizing the concept. A cause and effect Diagram is essentially a graphical representation of a chain of causes and effects. (Evans, 2011)

In the diagram, every branch points to the main stem to represent a possible cause. The branches that point to the cause are the contributors to the causes. The Fishbone diagram is best constructed after or during a brainstorming sessions with teams so that all ideas are taken into consideration.

In the case of Welz Business Machines, Tim met with his service representatives

PARETO ANALYSIS

Pareto Analysis is a technique which formally addresses many possible causes of actions. It helps in prioritizing all the different causes of problems. Pareto analysis provides a creative way of observing the causes of problems and this in turn stimulates organizations to think of ways of addressing them.

It does this by separating the “Vital few” from the “trivial many” and helps in narrowing down on the directions for improvement. (Evans, 2011). It uses the data that would have been collected from check sheets. The data in the Pareto diagram is arranged from the largest to the lowest frequency.

Once the technique is employed, an organization is able to identify top causes of the problems that need to be addressed to solve most of the problems. Thereafter an organization can use other tools like the Fish bone analysis to get to the root cause of the problem.

In the Welz Business Machines, Tim at the request of the Company President Mr. Scot Welz set out to study the problem they were facing and a find a solution or a method to reduce the call waiting time. (Evans, 2011). He designed a data collection sheet that would then be used to track the causes of callers having to wait a long time when they called for service. He involved other staff members to get a collective indication of the

Customer Dominates Conversation:- The staff should be trained on how to take control of the conversation without being rude. Having a good knowledge of the products can help to take charge of the conversation with facts that can be backed by examples and evidence. Keeping to the main business of the service call is key so it is important for staff to remain focused on the main purpose even when the customers digress to personal issues.

5. Deal with the other reasons:- After the major issues have been tackled, the management should also look into the smaller problems just in case they also develop into bigger issues.

6. Institutionalize Processes: - Develop and document processes that will help future performance. The processes can be reviewed from time to time. This will also ensure consistency in service and continuous improvement. Welz can also invest in a telephone technology that can monitor calls in terms of how long the call rung before being picked, how long the conversations took and how many calls dropped. The analysis can be used to improve