Pareto Chart

 

Pareto Chart

A graphical technique used to identify the significance of individual factors 

 When to Use a Pareto chart

•  When analyzing data about the frequency of problems or causes in a process
•  When there are many problems or causes and you want to focus on the most significant
  
•   When analyzing broad causes by looking at their specific components
  
•   When communicating with others about your data 

          Example of Pareto Chart

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  How to prepare?

  • Decide what categories you will use to group items
  • Decide what measurement is appropriate. common measurements are frequency, quantity, cost and time
  • Decide what period of time the Pareto chart will cover: One work cycle? One full day? A week?
  • Collect the data, recording the category each time (Or assemble data that , already exist) 
  •  Subtotal the measurements for each category
  • Determine the appropriate scale for the measurements you have collected.The maximum value will be the largest subtotal from step 5. Mark the scale on the left side of the chart
  • Construct and label bars for each category. Place the tallest at the far left, then the next tallest to its right and so on. If there are many categories with small measurements, they can be grouped as "other"  

Example

 

Example