Why pareto chart

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Project Management Articles. Start Free Trial. Work smarter with Wrike. Try for Free. Cart Total: Checkout. Learn About Quality. Magazines and Journals search. About Pareto Chart. Pareto Chart Resources. Pareto Chart Related Topics. The Pareto Chart is a unique visualization in that it contains both bars and a line graph, where individual values are represented in descending order by bars, and the cumulative total of those values is represented by the line from left to right.

For instance, the line begins at the top of the first bar, and as we move right, towards the second bar, the line displays the combined total of both bars as a percentage, representing the total share of these 2 items i.

The Pareto Chart, derived from a histogram, views causes of a problem in order of severity from largest to smallest, ultimately demonstrating the Pareto principle. With a Pareto Chart, you are able to highlight the most important among a large set of factors. The most prevalent use case is for quality control, be it identifying the most common source of defects, the highest occurring type of defect, the most frequent reason for customer complaints, and so on.

As noted, Pareto Charts are not used solely for the purpose of quality control. A Pareto chart is a special example of a bar chart.

For a Pareto chart, the bars are ordered by frequency counts from highest to lowest. These charts are often used to identify areas to focus on first in process improvement. Pareto charts show the ordered frequency counts of values for the different levels of a categorical or nominal variable. Figure 1 is an example of a Pareto chart. The chart shows the types of findings from an audit of business processes.

The most common finding is that a standard operating procedure SOP was not followed. As mentioned above, a Pareto chart is a special example of a bar chart. For a Pareto chart, the bars are ordered from highest to lowest. For a bar chart, the ordering is not forced from high to low. Bar charts often use alphabetical ordering or some other logical order. Although you can still use the bar chart to identify the most frequent problem, it is not as effective for that purpose as the Pareto chart.