Pareto Chart:

A Pareto chart is a special form of a vertical bar graph which helps identify the Vital few from the Useful many. Pareto
Chart determines priorities. Italian economist Pareto (1848-1923) invented Pareto Chart for analyzing national income.
Dr. Juran observed similar logic in Quality Control also. He popularized the Chart and named it in honor of the originator.
Hes initial work applying the 80/20 rule to quality studies, he identified 20 percent of the defects causing 80 percent of
the problems.

Example:

Paint Nonconformities

Number Category Freq. Percent Cumulative %

2 Lt. Spray 582 30.9 30.9
7 Runs 434 23.1 54.0
3 Drips 227 12.1 66.1
1 Blister 212 11.3 77.4
5 Splatter 141 7.5 84.8
6 Bad Paint 126 6.7 91.5
4 Overspray 109 5.8 97.3
8 Other 50 2.7 100.0

Application: (When to sue it)

To direct attention and effort to the truly important problem.

To identify the most important root causes contributing substantially to the problems and find level of contribution
of each factor numerically.

To set priorities for counter-measures while dealing with chronic problems.

To compare the extent of improvement prior and subsequent to implementing counter-measures.