Pareto Chart (also known as Pareto Analysis or Pareto Diagram) is one of the seven basic tools of quality which helps to determine the most frequent defects, complaints, or any other factor. You probably already heard about the 80/20 rule or the Pareto's rule and it is usually used to control the quality. Variations: weighted Pareto chart, comparative Pareto charts. Pareto Analysis is a decision making technique based on the 80/20 rule where 80% of the benefits of the project can be achieved by the company by doing the 20% of the work or the 80% problem of the company is traced to 20 % causes. A Pareto chart is a bar graph. Despite it was originally formulated to study the distribution of wealth, it became known as the Pareto analysis. In this way the chart visually depicts which situations are more significant. Steve Bonacorsi explains how. 20% of bugs contribute 80% of crashes: Focus on fixing these bugs first. Knowing this, if… 20% of workers contribute 80% of results: Focus on rewarding these employees. From this aspect, it can be used as an efficient tool for problem-solving. • If you are using Excel, you will need basic working knowledge of how to create charts. The examples go on. Setup • If you are using the Pareto Template, follow the instructions on the template and fill in each section. 20% of customers contribute 80% of revenue: Focus on satisfying these customers. Process Analysis Tools 1 Institute for Healthcare Improvement Boston, Massachusetts, USA Pareto Diagram According to the “Pareto Principle,” in any group of things that contribute to a common effect, a relatively few contributors account for the majority of the effect.
A few vital CSFs were identified and reported. A quality tool "Pareto analysis" was used to sort and arrange the CSFs according to the order of criticality. The Pareto Principle helps you realize that the majority of results come from a minority of inputs. Pareto Chart if the raw data is available and calculations are complete. Pareto (pronounced "pa-RAY-toe") analysis is named after Vilfredo Pareto, an Italian economist who lived in the late 19th and early 20th centuries. It is simply rank-ordering costs, sales, productivity, or other metrics and attributing a % of the cumulative value at each ranking of the total. Below is a simplified example of a Pareto analysis on the costs of 10 items. One of the ways many people do is to use the Pareto analysis.
Pareto analysis helps identify those significant few problems so people can target them for action. Pareto analysis is one of the most basic and useful analytic tools.

It is a visual tool widely used by professionals to analyze data sets related to a specific problem or an issue. The lengths of the bars represent frequency or cost (time or money), and are arranged with longest bars on the left and the shortest to the right. A Pareto diagram is a type of bar chart in which the various factors that