Pareto Chart

Vilfredo federico Damaso Pareto was an economist who developed the “Pareto
chart”, he noted that a few people or only 20% of the people controlled most of
80% of a nation’s wealth. The “Pareto’s Law” has been applied to many other
areas including defects, where a few causes are responsible for most of the
problems.

A Pareto chart organizes and displays information in order to demonstrate the

relative importance of various problems or cause of problems. It is a vertical bar
chart with items organized in order from the highest to the lowest, relative too
measurable effect such as frequency, cost and time.

The Pareto Principle is based upon the principle which states that 80% of a
problem is attributable to 20%nof its causes, or inputs.

Pareto charts can help prioritize quality problems and separate the “Vital few”
problems from the “Trivial many”.