Pareto Principle / Pareto Chart

80/20 rule — few causes produce most of the effect. The Pareto chart visualises this with sorted bars and a cumulative curve.

Also known as: Pareto, Pareto principle, 80/20 rule, Pareto chart

The Pareto principle (Vilfredo Pareto, 1896) states: about 80 % of the effect comes from about 20 % of the causes. In Six Sigma this means: focus improvement work on the few vital few defect types / causes, not on the trivial many.

  • Pareto chart — bars sorted descending by frequency, plus a cumulative percentage line
  • Reading — which 2–3 bars already make up > 70–80 % of the total frequency?
  • Data base — needs categorised counts (defect types, complaint reasons, incident causes)
  • After improvement — draw the Pareto again; the ranking shifts (attack the new remaining "vital few")

See also

Used in

Sources

  • Juran, J. M. — Juran's Quality Handbook, 5th Edition, McGraw-Hill, 1999
  • Pyzdek, T. & Keller, P. — The Six Sigma Handbook, 5th Edition
  • Ishikawa, K. — Guide to Quality Control, 2nd Edition, Asian Productivity Organization, 1982