Pareto chart

From Wikipedia, the free encyclopedia

Pareto chart

One of the Seven Basic Tools of Quality

First described Joseph M. Juran

by

Purpose To assess the most frequently

occurring defects by category

Simple example of a Pareto chart using hypothetical data showing the relative frequency of reasons for
arriving late at work
A Pareto chart, named after Vilfredo Pareto, is a type of chart that contains both bars and a line graph,
where individual values are represented in descending order by bars, and the cumulative total is
represented by the line.

The left vertical axis is the frequency of occurrence, but it can alternatively represent cost or another
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. Because the reasons are in decreasing
order, the cumulative function is a concave function. To take the example below, in order to lower the
amount of late arrivals by 78%, it is sufficient to solve the first three issues.

The purpose of the Pareto chart is to highlight the most important among a (typically large) set of
factors. In quality control, it often represents the most common sources of defects, the highest occurring
type of defect, or the most frequent reasons for customer complaints, and so on. Wilkinson (2006)
devised an algorithm for producing statistically based acceptance limits (similar to confidence intervals)
for each bar in the Pareto chart.

These charts can be generated by simple spreadsheet programs, such as Apache OpenOffice/LibreOffice
Calc [1] and Microsoft Excel,[2] visualization tools such as Tableau Software,[3] specialized statistical
software tools, and online quality charts generators.

The Pareto chart is one of the seven basic tools of quality control.[4]

See also[edit]

Control chart

Histogram

Pareto analysis

Quality control

Seven Basic Tools of Quality

Statistical process control (SPC)

7 QC Tools

References[edit]

1. Jump up^ Chart Type Column and Line

2. Jump up^ Pareto Chart in Excel Best Excel Tutorial

3. Jump up^ Pareto in Tableau

4. Jump up^ Nancy R. Tague (2004). "Seven Basic Quality Tools". The Quality
Toolbox. Milwaukee, Wisconsin: American Society for Quality. p. 15. Retrieved 2010-02-
05.

Further reading[edit]
 Hart, K. M., & Hart, R. F. (1989). Quantitative methods for quality improvement. Milwaukee, WI:
ASQC Quality Press. Santosh: Pre Press

Juran, J. M. (1962). Quality control handbook. New York: McGraw-Hill.

Juran, J. M., & Gryna, F. M. (1970). Quality planning and analysis. New York: McGraw-Hill.

Montgomery, D. C. (1985). Statistical quality control. New York: Wiley.

Montgomery, D. C. (1991). Design and analysis of experiments, 3rd ed. New York: Wiley.

Pyzdek, T. (1989). What every engineer should know about quality control. New York: Marcel
Dekker.

Vaughn, R. C. (1974). Quality control. Ames, IA: Iowa State Press.

Wilkinson, L. (2006). "Revising the Pareto Chart". The American Statistician. 60: 332
334. doi:10.1198/000313006x152

Pareto chart
From Wikipedia, the free encyclopedia

Pareto chart

One of the Seven Basic Tools of Quality

First described by Joseph M. Juran

Purpose To assess the most frequently occurring defects by

category
Simple example of a Pareto chart using hypothetical data showing the relative frequency of reasons for arriving
late at work

A Pareto chart, named after Vilfredo Pareto, is a type of chart that contains both bars and a line
graph, where individual values are represented in descending order by bars, and the cumulative total
is represented by the line.
The left vertical axis is the frequency of occurrence, but it can alternatively represent cost or another
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. Because the reasons are in
decreasing order, the cumulative function is a concave function. To take the example below, in order
to lower the amount of late arrivals by 78%, it is sufficient to solve the first three issues.
The purpose of the Pareto chart is to highlight the most important among a (typically large) set of
factors. In quality control, it often represents the most common sources of defects, the highest
occurring type of defect, or the most frequent reasons for customer complaints, and so
on. Wilkinson (2006) devised an algorithm for producing statistically based acceptance limits (similar
to confidence intervals) for each bar in the Pareto chart.
These charts can be generated by simple spreadsheet programs, such as Apache
OpenOffice/LibreOffice Calc [1] and Microsoft Excel,[2] visualization tools such as Tableau Software,
[3]
specialized statistical software tools, and online quality charts generators.
The Pareto chart is one of the seven basic tools of quality control.[4]

See also[edit]
Control chart

Histogram

Pareto analysis

Quality control
 Seven Basic Tools of Quality

Statistical process control (SPC)

7 QC Tools

References[edit]
1. Jump up^ Chart Type Column and Line

2. Jump up^ Pareto Chart in Excel Best Excel Tutorial

3. Jump up^ Pareto in Tableau

4. Jump up^ Nancy R. Tague (2004). "Seven Basic Quality Tools". The Quality
Toolbox. Milwaukee, Wisconsin: American Society for Quality. p. 15. Retrieved 2010-02-05.

Further reading[edit]
Hart, K. M., & Hart, R. F. (1989). Quantitative methods for quality improvement. Milwaukee,
WI: ASQC Quality Press. Santosh: Pre Press

Juran, J. M. (1962). Quality control handbook. New York: McGraw-Hill.

Juran, J. M., & Gryna, F. M. (1970). Quality planning and analysis. New York: McGraw-Hill.

Montgomery, D. C. (1985). Statistical quality control. New York: Wiley.

Montgomery, D. C. (1991). Design and analysis of experiments, 3rd ed. New York: Wiley.

Pyzdek, T. (1989). What every engineer should know about quality control. New York: Marcel
Dekker.

Vaughn, R. C. (1974). Quality control. Ames, IA: Iowa State Press.

Wilkinson, L. (2006). "Revising the Pareto Chart". The American Statistician. 60: 332
334. doi:10.1198/000313006x152

https://en.wikipedia.org/wiki/Pareto_chart