## What is Pareto chart in 7 QC Tools?

→**“**Pareto Chart

**in 7 QC Tools**is a diagram that shows the order of the largest number of occurrences by item or by classes and the cumulative sum total.”

### 1) History of Pareto chart and Pareto Principle:

→ Vilfredo**Pareto**was an Italian engineer, sociologist, economist, political scientist, and philosopher.

→ He shows an observation that is: "80% of the land in Italy was owned by about 20% of the population."

→ He introduced the concept of Pareto efficiency and helped to develop the field of microeconomics.

→ The

→ He also contributed to the fields of sociology and mathematics.

→ He introduced the concept of Pareto efficiency and helped to develop the field of microeconomics.

→ The

**Pareto**principle was named after him.→ He also contributed to the fields of sociology and mathematics.

### 2) Pareto Chart in 7 QC Tools:

→ “

**Pareto Chart in 7 QC Tools**is a diagram that shows the order of the largest number of occurrences by item or by classes and the cumulative sum total.”
→ It is a combination of a bar graph and line graph.

→ A bar graph is arranged in descending order of height from left to right while a line graph represents the cumulative percentage.

→ The bar graph shows the number of defects and the line graph shows the cumulative percentage of the defect.

### 3) Pareto Principle:

→**Pareto**Principle is also known as the 80/20 rule, the law of the vital few or the principle of factor sparsity

→ 80% of the Problems come from 20% of the causes

→ 80% of the Outputs come from 20% of the Input

→ 80% of the Results come from 20% of the effort

→ It Distinguishes between Vital Few from Trivial Many.

### 4) Steps in Making a Pareto Chart in 7 QC Tools:

1. Select the problem.2. Collect data.

3. Sort data & calculate the cumulative frequency.

4. Draw the axes, Construct the bars, Draw the cumulative percentage line, Title and label the chart.

5. Identify Vital Few from the Trivial Many by using 80:20 principle and plan further action.

#### ➤ Step 1. Select the Problem to construct a Pareto Chart:

➝ Select the problem for investigation.

➝ Determine the method of collecting data and period of data collection.

➝ Design a separate check sheet if necessary.

➝ E.g. : Defect analysis.

#### ➤ Step 2. Collect of data:

➝ The second step in the**Pareto chart in 7 QC Tools**is collection fo the data.#### ➤ Step 3. Sort data & calculate cumulative percentage:

➝ After the collection of data, the third step in the Pareto chart is to sort out data and find the cumulative percentage of data.

#### ➤ Step 4. Draw the axes, Construct the bars, Draw the cumulative percentage line, Give Title and labeling the chart:

➝ After sorting out data and find the cumulative percentage, Draw the axes, Construct the bars, Draw the cumulative percentage line, Give Title and labeling the chart.#### ➤ Step 5: Identify Vital Few from the Trivial Many by using 80:20 principle and plan further action:

→ From step 4: as per the

**Pareto Chart**, we have Identify Vital Few ( i.e. defect D, Defect E, Defect F and Defect A ) from the Trivial Many (i.e. All defects ) as per 80:20 Rule (**Pareto**Principle).
→ Now we will take action on these defect by finding the root cause of defect generation and implement preventive action on it.

→ It displays relative importance of causes of the problem.### 5) Benefits of Pareto Chart in 7 QC Tools:

→ We can easily distinguish between Vital Few and Trivial Many.→ Helps the team to focus on those causes that will have the greatest impact when solved.

→ By using 20% of resources we can solve 80% of problems.

→ We can easily understand the impact of the defect on our production

→ It is very easy for analysis by this tool

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See Also: Content 7 QC Tools

2. Flow Charts - 7 QC Tools

3. Cause and Effect Diagram (Fishbone diagram or Ishikawa Diagram) - 7 QC Tools

4. Check Sheet - 7 QC Tools

5. Histogram - 7 QC Tools

6. Pareto Chart - 7 QC Tools

7. Scatter Diagram - 7 QC Tools

8. Control Chart - 7 QC Tools

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