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7 QC Tools: Pareto Chart (Video Tutorial)

What is a Pareto Chart?

  • Combination of bar chart and line graph
  • Graphical tool that represents the actual data in descending order using bar chart and cumulative data in ascending order using line graph
  • Based on 80-20 rule
  • Named after Alfredo Pareto.

Why does the Pareto Chart use as a qc tool?

  • Identifies the vital few causes instead trivial many
  • Prioritizes the issues responsible for a problem
  • Gives an idea about the cumulative impact of the problem

How does the Pareto Chart analyse the data?

  • Table 1 shows the runs scored by the eleven players of a team in a cricket match
  • To analyse this data using Pareto Chart, first arrange all the data in descending order. Now calculate the cumulative score by adding the succeeding value into its preceding value taking first value as it is.
  • Now calculate the percentage cumulative score.
  • To draw the Pareto Chart, take players on primary horizontal Axis, Runs scored on primary vertical Axis, and cumulative percentage score on secondary vertical Axis
  • The runs scored by individual player is shown by the bar chart in descending order, and cumulative percentage score is shown by the line graph in ascending order.
  • Now you can easily understand from the bar chart, the first three highest scores are 111, 85, and 65 by Rajan, Karan and Mukul and line graph shows that these three contribute about 70 percent to the total score. The total score might be 70% less if they had gone for zero.
  • In the same way, Pareto Chart analyses, which vital few causes are responsible for major part of the problem along with the cumulative impact of the causes and hence one can make a decision which causes need to address first to reduce the 80% impact of the problem

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