Pareto Chart

Question 1

Definition

Answer 1

A type of chart that combines both bar and line graphs, where individual data values are represented in descending order by bars, and the cumulative total is represented by a line.

Question 2

Purpose

Answer 2

• To identify and prioritize the most significant factors contributing to a problem or situation.
  
  • To visually illustrate the “80/20” rule, where roughly 80% of effects come from 20% of causes.

Question 3

Components

Answer 3

1. Vertical Axis (Y-axis)
   
   • Represents the frequency, count, or percentage of occurrences.
2. Horizontal Axis (X-axis)
   
   • Represents the categories or factors being analyzed, listed in descending order of importance.
3. Bars
   
   • Represent individual categories or factors, arranged from highest to lowest frequency or impact.
4. Line (Cumulative Percentage)
   
   • Represents the cumulative percentage of the total, calculated by adding up the frequencies or percentages as you move from left to right along the horizontal axis.

Question 4

Interpretation

Answer 4

• Focus on the categories with the highest bars and steepest line slopes, as these represent the most significant contributors to the problem.
  
  • Prioritize improvement efforts on the factors that have the greatest impact, as indicated by the Pareto principle.

Question 5

Applications

Answer 5

• Quality improvement projects
  
  • Inventory management
  • Customer service improvement
  • Process optimization
  • Decision-making and resource allocation

Question 6

Example

Answer 6

A Pareto Chart showing the most common defects in a manufacturing process, with categories such as “Equipment Failure,” “Human Error,” and “Material Defects.”