Pareto Chart

A graphical tool for ranking causes of problems from most significant to least significant. It is based on the Pareto principle, first defined by Juran, 1950. Pareto Charts suggest most effects (or results), come from relatively few causes; that is, 80% of effects come from 20% of the possible causes.

Comments: Almost all companies use Pareto Charts to gain a better sense of or appreciation for data collected. As consultants we have literally seen thousands of Pareto Charts and they all kind of start to blend together after awhile.

Pareto Charts are great to use, but use them in moderation. Very often we will see entire walls dedicated to Pareto Charts that are largely or entirely ignored. Perhaps too much of a good thing