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Eeny, meeny, miny, moe… it’s a Pareto!

perato_bag of tricks

Your problem solving bag of tricks size may vary.

One thing companies have in common – regardless of industry, locations, or size – is that there are plenty of problems to solve AND limited resources to do so. Thus, one tool in your “problem solving bag of tricks” must be a filter to prioritize what to go after first.

One tool I use is a Pareto chart. Based on what you deem as important (y-axis), it sorts highest to lowest. By focusing on those at the left, you get a bigger bang for your effort.

Of course, this tool comes into play once you have decided “what set of problems to focus on”.

For example, assume you have determined that machine down time is adversely effecting your business. You could plot which machine has the greatest downtime and focus there. Or you may plot which shift has the greatest downtime and focus there. Or maybe it is electrical vs mechanical vs computer. How do you decide “what” to Pareto? If you pick the wrong category — you could waste a year of resources and have no improvement.

Here are 4 simple questions that help sort that through…

1. Go back to the balance sheet. What is costing you the most money?
2. Assess your resources. Of what costs you the most money, what costs you the least to fix?
3. Timing is everything. Of what costs you the most, are there any quick wins that can fund the next fix or set of fixes?
4. Emotional land minds always exist. What problem does your leadership want solved? Even if it is not on your “most costly”, you will want to spend resources on it.

Be intentional