Supply Chain Wednesday–Three Chart Types

Today’s

Vocabulary

(1) Flow: Movement.

Water flows down a river and supplies flow out of China and into the world.

(2) Parento Principle: 80% of the effects come from 20% of the causes.

It’s the Parento principle. 80% of the complaints come from 20% of the customers.

(3) Chart: A picture version of data

Charts are so much more useful than written explanations.

Today’s

Questions

1. Why might you use a flow chart?

a. To show how things change over time

b. To show steps in a process

c. To show which problem is the biggest

2. Why might you use a run chart?

a. To show how things change over time

b. To show steps in a process

c. To show which problem is the biggest

3. What might you use a Parento chart?

a. To show how things change over time

b. To show steps in a process

c. To show which problem is the biggest

7 ________________________

SUPPLY CHAIN WEDNESDAY

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By Jeremy Schaar

Today on the blog, we’ll review three common charts. You’ll learn some good vocabulary and you’ll learn some good ways to help your business succeed.

Flowchart: Flowcharts show the steps in a process. Here’s a simple example from EmeraldInsight.

flow chart

Run chart: Run charts are all about time. Think of any chart that has time on the X-axis and some other data on the Y-axis. Here’s a simple example of pies sold by a bakery over a year.

pies

Pareto chart: Pareto charts show how important different things are. For example, you might have lots of 100 late orders. You want to know the different causes of the late orders and how important each cause is. Here’s an example from http://whatis.techtarget.com/

pareto_chart_customer-complaints

Got questions or comments? How about practicing some new vocabulary and posting your thoughts on the blog, Facebook, or Twitter?

CHECK YOUR ANSWERS!

Answers To Today’s Questions

B, A, C

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You Can Do It All Yourself But You Dont Have To

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