Pareto Diagram

last edited by: Juan Gabriel Gantiva Vergara on Dec 26, 2018 4:22 PM login/register to edit this page


A Pareto diagram is a vertical bar chart that identifies the critical few from the uncritical many: A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause.

Pareto diagrams are used to identify the vital few sources that are responsible for causing most of a problem’s effects. The categories shown on the horizontal axis exist as a probability distribution that accounts for 100% of the observations. The relative frequencies of each specified cause listed on the horizontal axis decrease in magnitude until a default source named “other” accounts for any non-specified causes. Typically, the Pareto diagram will be organized into categories that measure either frequencies or consequences.

It is based on the 80/20 rule: 80 percent of the problem is caused by 20 present reasons. It helps focus attention on the most critical issues and prioritizes potential causes of the problem. This technique has remarkable advantages:

  1. Organizational Efficiency and the focus on the prioritized problem.
  2. Enhanced Problem-Solving Skills.
  3. Improved Decision Making
To make the use of pareto diagrams more effective, you can make use of the 5 why technique, which will make it easier to find the root causes of the problems.


last edited by: Juan Gabriel Gantiva Vergara on Dec 26, 2018 4:22 PM login/register to edit this page


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