Use Pareto before choosing the kaizen focus

The billing team has 96 defects across five categories and needs to choose one kaizen focus. Pareto focus: choose categories, count defects, rank by frequency, then select the most significant category for root-cause analysis The common trap is using Pareto as a solution tool. It does not tell you why PO numbers are missing. It tells you that missing PO numbers are the biggest category and therefore deserve focused root-cause work. Choose categories Use mutually understandable categories: missing PO number, wrong tax code, invalid address, discount mismatch, attachment error. If categories overlap, clean the definitions before charting. Bad categories create…

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