Pareto Chart

The Quality Toolbook > Pareto Chart

When to use it | How to understand it | Example | How to do it | Practical variations

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The Pareto Chart is used to show the relative importance of a set of measurements.

• When to use it: Situations when it is useful.
• How to understand it : Details of how it works.
• Examples : Some examples of usage.
• How to do it : Step-by-step instructions on using it.
• Practical variations : Variants and variation.

Notes

Vilfredo Pareto was an 18th century Italian economist, who observed that about 80% of the wealth of the country was owned by about 20% of the population and that this pattern repeated itself within the wealthy group (thus very few people were very wealthy).

J. M. Juran called the generalization of this uneven distribution the 'Pareto Principle', which is also sometimes called the '80/20 Rule'. Pareto Analysis is the act of using this principle.

Pareto Charts are one of the first seven tools.