Pareto Chart

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Pareto chart Pareto diagram create A Pareto chart is a special type of bar chart where the values being plotted are arranged in descending order. It is named after Vilfredo Pareto, and its use in quality assurance was popularized by Joseph M. Juran and Kaoru Ishikawa.

Typically on the left vertical axis is frequency of occurrence, but it can alternatively represent cost or other important unit of measure. The right vertical axis is the cumulative percentage of the total number of occurrences, total cost, or total of the particular unit of measure. The purpose is to highlight the most important among a (typically large) set of factors.

In quality control, the Pareto chart often represents the most common sources of defects, the highest occurring type of defect, or the most frequent reasons for customer complaints, etc. See this help file how to use our tool.

Their use gives rise to the 80-20 Rule that 80 percent of the problems stem from 20 percent of the causes.
Vilfredo Federico Damaso Pareto 15 July 1848 19 August 1923), born Wilfried Fritz Pareto, was an Italian industrialist, sociologist, economist, and philosopher. He made several important contributions to economics, particularly in the study of income distribution and in the analysis of individuals choices. "His legacy as an economist was profound. (From Wikipedia, the free encyclopedia)

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