Pareto Warranty
1. **State the problem:** We have warranty claim data for different unit/component parts of a product. We want to draw a Pareto curve and understand how it can help tackle warranty claim problems.
2. **List the data:**
- Drum: 110 claims
- Casing: 1282 claims
- Work-top: 142 claims
- Pump: 246 claims
- Electric motor: 798 claims
3. **Sort the data in descending order of claims:**
- Casing: 1282
- Electric motor: 798
- Pump: 246
- Work-top: 142
- Drum: 110
4. **Calculate total claims:**
$$\text{Total} = 1282 + 798 + 246 + 142 + 110 = 2578$$
5. **Calculate cumulative claims and cumulative percentage:**
| Component | Claims | Cumulative Claims | Cumulative % |
|----------------|--------|-------------------|--------------|
| Casing | 1282 | 1282 | $\frac{1282}{2578} \times 100 \approx 49.7\%$ |
| Electric motor | 798 | 1282 + 798 = 2080 | $\frac{2080}{2578} \times 100 \approx 80.7\%$ |
| Pump | 246 | 2080 + 246 = 2326 | $\frac{2326}{2578} \times 100 \approx 90.2\%$ |
| Work-top | 142 | 2326 + 142 = 2468 | $\frac{2468}{2578} \times 100 \approx 95.7\%$ |
| Drum | 110 | 2468 + 110 = 2578 | $\frac{2578}{2578} \times 100 = 100\%$ |
6. **Draw the Pareto curve:**
- X-axis: Components sorted by claims
- Left Y-axis: Number of claims (bar chart)
- Right Y-axis: Cumulative percentage (line graph)
7. **Interpretation:**
- The Pareto principle suggests that roughly 80% of problems come from 20% of causes.
- Here, casing and electric motor together account for about 80.7% of claims.
- Focusing on improving these two components will most effectively reduce warranty claims.
**Final answer:**
The Pareto curve shows casing and electric motor as the major contributors to warranty claims (about 80.7%). Prioritizing improvements on these parts will most effectively reduce claims and improve product reliability.