Pareto Rule

Review the chapter text about the Pareto rule and examine Figure 18-4. Note that the text

says Pareto diagrams are often drawn to reflect before and after results.

Assume that Figure 18-4 is the before diagram for the Billing department. Further assume

that the after results are as follows:

Activity Activity Code Number

Process Denied Bills PDB 12

Review with Supervisor RWS 10

Locate Documentation LD 6

Copy Documentation CD 5

33

Required

1. Redo the Pareto diagram with the after results. (Use Figure 18-4 as a guide.)

2. Comment on the before and after results for the Billing department.

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