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 to demonstrate the relative

importance of various problems or causes of problems. It is a vertical bar chart
with items arranged from the highest to the lowest, comparable to measurable
effects such as frequency, cost, and time.

The Pareto Principle believes that 80% of a problem is attributable to 20%nof its
causes or inputs.

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