Question

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5. (20 pts) Pareto Analysis Pareto Analysis is a "Root Cause Analyses" methodology for identifying and prioritizing the possible root causes of the problem. Pareto Charts are utilized for determining the significance level of the root causes so that the first piece of work you do resolves the greatest number of problems. In Pareto Analyses, possible root causes of the problem are written down, scored regarding to their possible effects, and actions are taken for the ones that will have great effect. a) (8 pts) What is the main difference and advantage of Pareto Analyses in comparison with other Root Cause Analyses techniques? b) (12 pts) A hotel has been suffering from customer complaints for a long time. After conducting the root cause analyses, resulting "Pareto Chart" is given below, which basically shows the root causes of the customer complaints and their impacts. According to this Pareto Chart; which root causes have to be solved to avoid 85% of customer complaints? Pareto Chart Hotel Complaints 35 120% 30 100% 25 80% 20 Occurences 60% 15 cumulative Percent lu. 40% 10 20% 5 0% Staff attitude Billing process Concierge responsiveness Room décor All other Vait time for reservations 31 39% 39% Quantity Cum % % of Total Room cleanliness 18 61% 23% Room service delivery time 11 75% 5 91% 6% 85% 10% 100% 2 99% 3% 96% 5% 1%

Answer 1

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to determin to make decision so that @ Parute analysis allow us which problems may need to be addressed first. We will obtain main et 3 problems which affecting almost 80-85 % 50 of results. st we focus on this problems to enhanu results. our not This seen in other root came feature is analysis techniques. © It helps ws to work with limited resources sina the data i represented hierarchically, a so Tesouras ant used first to fulfill fulfill requirement of significant that particular process which are most Question - B. Various customer complains. Occurence Parete chart shows causes for the e different lights of bar represents problem complau'ns and problems mentions of that particular for customer on Xraxis differut the we con on the right side of y-axi's it represent cermulative percentage of problems affecting the customer's Complaints, chart * By looking at say that to 85% of problems due to following (cumulative % ) o wait for reservation Room cleanli ③ Room service delivery time Teasory 39 y huss CUり、 457. 857 6 staff attitude So these causes has to be solved to avoid 85% complaints,

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