Pareto Chart

WHAT IS PARETO CHART

 A Pareto chart is a bar graph. The lengths of the bars represent frequency
or percentage occurrence from highest to lowest.
 The chart visually depicts which situations are more significant.
 It helps analyze and prioritize issue resolution.

WHEN TO USE A PARETO CHART

 When analyzing data about the frequency of problems or causes in an

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

UNDERSTANDING THE PARETO PRINCIPLE

(The 80/20 Rule)

 The 80/20 Rule (also known as the Pareto principle or the law of the
vital few & trivial many) states that, for many events, roughly 80% of
the effects come from 20% of the causes
 More generally, the Pareto Principle is the observation.
 The numbers don’t have to be 20% or 80% exactly.
 The 80/20 rule observes that most things have an unequal distribution.
PARETO CHART PROCEDURE
• Arrange the data from the largest to smallest according to frequency
• Draw and label the x and y axes
• Draw the bars corresponding to the frequencies

PARETO CHART STEPS

 Step 1 - place data set in descending order
 Step 2 - calculate the total frequency
 Step 3 - cumulative frequency (CF)
 Step 4 - divide by total frequency
EXAMPLES 2

In an international airport many flights delayed for day, an airport manager want
to resolve the problem, the following table gives the information about the
number of flights delayed due to the different reasons. Help the manager to solve
the problem.

Solution: