What is Pareto Chart

What is a Pareto Chart-converted

Do you know which products provide the majority of your sales?

Pareto Chart was originally designed by the Italian economist Pareto. It was originally used to represent the distribution of national income. Later, it was used as a quality control tool to analyze problems and sum up the impact of factors. This cause analysis tool is considered one of the seven basic quality tools.

Contemporary Examples:

• 20% of all the websites get 80% of the total traffic
• 20% of the drivers cause 80% of the accidents

The Pareto Principle states that 80% of the results are determined by 20% of the causes.

Therefore, you should try to find the 20% of defect types that are causing 80% of all defects.

Pareto Chart in Quality Improvement Process

• Pareto charts can be used at the start of a new round of quality improvement to figure out what business problems are responsible for the most complaints or losses, and dedicate improvement resources to those.
• Pareto chart can help the team select the appropriate areas to focus on.

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