How to start the Lean Manufacturing - Pareto Chart

Here the transcript of the video.

Do you know the Pareto's law?

It is an empiric law that merely states:

"The 20% of the factors give the 80% of the results."

What does it mean in the Lean Journey?

It means that you have to address your resources where it counts.

In detail:

1) You have to start the Lean Journey on the parts that pay the bill. For example, focus on the 20% of the SKU's generate 80% of the income.

2) You have to start a Total Productive Maintenance (TPM) program on the machines that set the pace. For example, focus on the 20% of the equipment that impacts the 80% of the output.

3) In a Lean Six Sigma project, you will discover the 20% of the factors influence the 80% of the desired characteristic.

4) Start mapping the biggest problems and make a Pareto chart.

5) Now you can easily see what problem is the biggest on the Pareto.

It is proven that the Pareto's law applies in most of the cases.

Do not start with a big program and tons of work hours and money but start by focusing on the 20% that give you 80% of the results.

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