Histogram, pareto chart and cause-effect

diagrams.

Tool

What for

Where to use it

I have used a Histogram tool to give you a graphical summary of the customer
satisfaction data. I hope this will help you to take decisions.
Histogram

Gives a graphical summary of the

customer satisfaction data.
It gives a visual impression of the
distribution of data
Useful to graph a large number of
quantitative data

1. To summarize large data sets

graphically
2. Compare measurements with
specification
3. For decision making,
histogram provides good
assistance
4. To make more sense out of
large data points and to
effectively communicate
5. Effective when comparing
survey or questionnaire
results.

Mngr: There are so many problems reported. If I sit and solve all these, it will take lot of
time and I will end of loosing my customers.
Cons: Well, of course ! You can use pareto analysis or 80-20 principle chart. Give me
some time and I will show you which problems to focus on first.
Pareto
Chart

Pareto Principle: 80% of the problems

are caused by 20% of the factors or
causes. By concentrating on 20% of
the factors, managers can attack 80%
of the problems.
Use of 80-20 rule helps to select the
vital few from useful many for further
action.

1. The most common use

during problem analysis to
find those sub-problems
which, when addressed, will
return the greatest benefits
2. When selecting problems,
causes or solutions to take
forward for further action
when you want to visibly
demonstrate priorities.

Mngr: My next question is how can we arrest these problems?

Cons: I suggest to have a brainstorming session with the entire team to know the
actual causes for the above problems
Mngr: That is a very good idea let me collect information from the team
Cause and
Effect
Diagram

1. Maps out a companys process /

problem to get better understanding
of the situations
2. Looks like fish skeleton
3. No statistics involved
4. Ishikawa; Fishbone; Cause & Effect
Diagram are other names

1. This diagram is useful to help

organize ideas and to identify
relationships. By identifying
these relationships we dan
determine factors that ae the
cause of variability in the
process
2. It is a tool that encourages
open brainstorming for ideas
3. For better understanding all
the causes were categorized
under 4 main categories:
Methods, Machinery, Men
and Materials.

1. We converted Customer Satisfaction survey results raw data sheet into meaningful
interpretation with the help of HISTOGRAM which portrayed the frequency of
customer rating categories
2. With Histogram chart we could see large number of unhappy customers
3. Next thing, we got several reasons for customer dissatisfaction from the list
4. One cannot fix all the reasons at one go. It is important to act upon the critical ones
to achieve maximum results.
5. Here, we used the PARETO ANALYSIS or 80-20 rule to prioritize those issues,
which has resulted into dissatisfaction of 80% of customers. Pareto Analysis helps
to visually portray problems and causes in order of severity or frequency.
6. After identifying to 2-3 issues from Pareto, we used CAUSE AND EFFECT
[FISHBONE] DIAGRAM for each issue to find out all the possible root causes
through Brainstorming technique.
7. All the root causes were then segregated into In-control & Out of Control: High /
Medium / Low grid called Control/Impact Matrix.
8. Lastly, action items were identified for In-control root causes.