Pareto Login

[Janie Mccorey]

Usersare often interested in creating pareto charts using conditions they've created in Seeq sorted by a particular capsule property. The chart below was created using the Histogram tool in Seeq Workbench. For more information on how to create Histograms that look like this, check out this article on creating and using capsule properties.

Often times users would like to see the histogram above, but with the bars sorted from largest to smallest in a traditional pareto chart. Users can easily create paretos from Seeq conditions using Seeq Data Lab. A preview of the chart that we can create is:

The full Jupyter Notebook documentation of this workflow (including output) can be found in the attached pdf file. If you're unable to download the PDF, the code snippets below can be run in Seeq Data Lab to produce the chart above.

Pareto problem analysis and pareto charts are based on the Pareto principle which is named after Italian economist Vilfredo Pareto. The application of the Pareto principle in problem solving and analysis can provide a great starting point with simple data analysis of process, plant failure or production data to provide an early insight into problem causes and effects without intense or complex analysis. The pareto principle is also referred to as the 80-20 rule.

For those not familiar with the Pareto principle, it states that 80% of effects or consequences are the result of only 20% of causes. This principle has been widely observed in business and around socio economic issues in many industries and parts of the world. For example in many cases 80% of business revenue is usually achieved through only 20% of products or 80% of problems in a process such as waste or production downtime are caused by only 20% of the causes.

The Pareto principle can be observed and is applied in some lean concepts and operations management tools such as ABC Warehousing, production downtime, production planning, statistical quality control, supply chain design and other operations management areas. In all these cases 80% of the issues, plant throughput, deviations, and sales volumes are in most cases caused by only approximately 20% of the product range, possible causes, or faults. This principle can provide a starting point and economical problem/issue resolution approach of the most common problems in a production plant, business or process. A few of the areas where this rule applies are listed below.

In processing plants such as in mines that process ore after it is extracted, plant reliability and proper maintenance is very important due to the large economic cost of plant failures and related downtime. Also, due to their remoteness and large scale equipment, logistical issues also arise in sourcing plant and equipment. It is for these reasons that companies in these heavy industries have large maintenance teams (maintenance planners, reliability engineers, mechanical and electrical engineers, etc) that analyse plant failures and breakdowns. It is very common to see these maintenance teams perform Pareto studies on plant failures by compiling plant downtime data, investigating actual root causes and if they are due to mechanical or electrical plant failures these are logged for later analysis.

The results can be compiled onto a Pareto chart that will usually highlight a handful of causes for the majority of these failures; again the 80-20 rule is very commonly encountered. By initially focusing on the handful of results that cause the majority of breakdowns maintenance teams can put monitoring, preventive and reliability programs in place to service the plant preventatively at appropriate intervals.

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In the realm of performance management with QCD, our users utilize QCD cards to record problems and characterize them with various details, such as categorization, priority, criticality level, reporter and ownership identity for resolution.

You will be able to configure the Pareto chart X-axis with different criteria, which are the same as the ones available in QCD action plan filters. For further analysis, you can break down the bars into stacked bars via a 2nd parameter giving you the ability to refine your Pareto analysis more!

This is just the first step in a series of improvements that we will be making to this essential tool of performance management in the coming versions. For example, we are already working hard adding the ability to use Pareto across multiple boards in the same room, and we are looking forward to suggestions from you on how we can improve Pareto respond to your QCD usage!

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