Pareto analysis is used in decision making through the application of statistical techniques in the selection of a limited number of problems that produce the significant overall effect. The analysis uses the Pareto principle which states that doing 20% of the entire part of the job the generated benefit will be approximately 80% of the entire job (Karuppusami & Gandhinathan, 372-85). It is also known as the 80/20 rule. The idea of the Pareto principle can be used to estimate the major causes of customer complaints regarding the delay in responding to calls. In this analysis, we shall look at the 80% of the delays and relate the same percentage to see the possible cause of the call delays. The Pareto principle will help us coming with a decision since it applies quality control tools that use statistical analysis.
The chart below analyses the reasons for delay in call services complains placed by customers.
The Pareto diagram enables us to see what 20% of the reason causes 80% of the call delays. In this case, we can clearly see that the receiving party, not present and lack of operator understanding should be the focus in analyzing the problem of a long wait in-call service.
Possible Actions to improve the situation
The company needs to focus on the 20% of the highlighted reasons for delay (receiving party not present and lack of operator understanding), because they are the ones that matter a lot in this case. In this case, the issues that are crucial account for 20% and they result in 80% of the total complaints. Focusing on these causes of complaints will make an improvement on the overall problem but it does not mean the company should ignore the remaining 80% of the causes for delayed calls.
Some of the possible action the company should implement is to have a proper plan of schedule where the receiving party is always on the receiving end to minimize the problem of receiving party not present. The company can also hire part-time staff who should sit in for the absent full-time staff. The company should plan some training programs in order to familiarize the staff with the operation skills, thus avoiding the problem of the operator lacking understanding (Bamford & Greatbanks, 376-92). In conclusion, the company should deploy equipment and technologies that are user-friendly to curb the problem operator understanding.
Karuppusami, Gandhinathan, and R. Gandhinathan. “Pareto analysis of critical success factors of total quality management: A literature review and analysis.” The TQM magazine 18.4 (2006): 372-385.
Bamford, David R., and Richard W. Greatbanks. “The use of quality management tools and techniques: a study of application in everyday situations.” International Journal of Quality & Reliability Management 22.4 (2005): 376-392.