Which of the following directs the improvement efforts to those areas that will have the biggest impact?
Correct Answer: C
Explanation
A Pareto diagram is a type of chart that displays the frequency of problems or causes in a process in descending order by bars, and the cumulative percentage of the total number of problems or causes by a line.
The Pareto diagram helps to identify the most significant defects or issues that need to be prioritized for improvement. It is based on the Pareto principle, which states that 80% of the problems are caused by 20% of the causes. A Pareto diagram is one of the seven basic quality tools that are widely used in quality management and process improvement. References:
CBAP / CCBA Certified Business Analysis Study Guide, 2nd Edition, page 47 What Are the 7 Basic Quality Tools? | Lucidchart Blog, under 7 quality tools What is a Pareto Chart? Analysis & Diagram | ASQ